Reserves of high-grade oil are in decline, says Byron King. Other hydrocarbons will be required to meet energy demand over the coming decades. But the cost of extracting and refining these resources is much higher than the current market price of crude. And that’s why cheap fuel is definitely not here to stay.

The hype around the ethanol industry may have subsided, but its future as an alternative energy source is not dead. That’s why Archer Daniels Midland (NYSE:ADM) is using this bust to strengthen its position as industry leader. Andrew Snyder says this long-term strategy puts ADM in a great position for a future, greener America.

Energy investors may find themselves at odds in weighing whether to put their money into fossil fuels or green alternatives. Two separate articles in today’s Wall Street Journal provide a good backdrop for the current dilemma. Ultimately, we’re of the opinion that it’s still too early for alternative energy to make a convincing business case.

Energy prices continue to tumble on recession fears and a US dollar rally. For investors that are long-term bullish on energy markets, this represents a great buying opportunity, says Andrew Snyder. He expects coal producers like Massey (NYSE:MEE), Peabody (NYSE:BTU) and James River Coal (NYSE:JRCC) to see big increases in their valuations in the coming year.

Don’t expect oil prices to remain at these low levels for long, says Byron King. Demand weakness for crude is temporary. And oil-producing nations cannot sustain their own economies unless oil prices are close to $100 a barrel. Byron says it could be time for investors to slowly build up a position in oil service stocks.

The Democrats are in a very strong position following Tuesday’s election. Andrew Snyder says oil majors like Exxon Mobil (NYSE:XOM) and BP (NYSE:BP) will face higher taxes and stricter legislation. But offshore drilling experts with international exposure like Transocean (NYSE:RIG) remain an excellent long-term investment.

The stock market is due a bounce after the election, regardless of who wins. But after that, the voter’s choice will have a big impact on industry winners and losers. Rick Pendergraft says biotech and alternative energy stocks should get a lift under Obama, while defense and oil will benefit from a McCain victory.

T-3 Energy Services (NASDAQ:TTES) provides essential safety equipment for oil and gas rigs. Though drilling activity has been affected by the fall in commodity prices, Chris Mayer says the stock has been massively oversold. Today it is trading at $19, down from a high of $84 last year. Given its healthy cash flow and strong international growth outlook, Chris says a move back to $60 is on the cards.

The plummeting price of oil could cause another source of capital to dry up: the Sovereign Wealth Funds (SWFs) of the Persian Gulf. This could be another blow for global credit markets, says Irwin Greenstein. These oil-rich funds fueled with petrodollars invested trillions over the past few years, notably with high-profile infusions of billions in CitiGroup, Carlyle Group, Merrill Lynch and the Nasdaq Stock Market.

Crude oil prices have tumbled 55% since July. And oil stocks have been dragged down with them. But Eric Roseman says this is a great opportunity to buy into Big Oil at 2004 prices. These companies are flush with cash and pay out attractive dividends. And they are likely to recover over the next 12-18 months as commodity prices find a bottom.