Tallahassee, FL 1/4/12 (StreetBeat) --Oil stocks are on the upswing to kick off the New Year as tension between Iran and the United States has provoked concern of a possible disruption to oil supplies from the Middle East. Meanwhile, data from China shows that the country's economic activity is picking up. The Paragon Report examines investing opportunities in the Oil & Gas Sector and provides equity research on SandRidge Energy, Inc. (NYSE: SD) and Hyperdynamics Corporation (NYSE: HDY).Military exercises in the Gulf by Iran and the movement of U.S. naval vessels in the area has raised fears of a confrontation between Tehran and Washington that could cut off oil exports from the region, Reuters reports. Iran has threatened to close the Strait of Hormuz, where approximately 40 percent of global crude exports pass, as possible retaliation to new U.S. economic sanctions over Iran's nuclear program.
Over the weekend, U.S. President Barack Obama signed a law imposing tougher financial sanctions that could for the first time hurt Tehran's oil exports. Reuters reports that the European Union could soon follow suit.
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Shares of Oil and Gas companies with minimal exposure to the Middle East jumped on the news of Iran's threats, as these companies stand to benefit from the uptick in oil prices, without losing production volume.
SandRidge Energy operates as an independent natural gas and oil company in the United States. In December SandRidge announced that it entered into a Joint Venture with a subsidiary of Repsol YPF, S.A., a leading international energy company based in Madrid, Spain. Under the agreement, SandRidge says that it will sell an approximate 25% non-operated working interest, or 250,000 net acres, in the Extension Mississippian play located in Western Kansas.
Hyperdynamics Corporation is engaged in the development of offshore prospects in Republic of Guinea, northwest Africa. Shares of the company soared last week after it announced that it resumed drilling in an exploration well offshore the Republic of Guinea in West Africa.
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