Oil has fallen over 70% over the last year due to declining projections of future oil demand. While I have argued that long oil exposure is a prudent and wise move for any portfolio, there’s no better time than today to be adding long oil exposure given the potential upside available. It’s hard to argue that, despite increased focus on alternative energies and alternative fuels, these new technologies will not likely affect oil demand in any significant manner over the next decade. The first American electric car will not reach production until the end of 2010 and will take years before wide spread adoption changes consumer behavior. New power plants also take between 2 and 5 years to complete and truly efficient new technologies such as solar power could take at least another two to three years before they become competitive with current oil prices.

But, despite the 240% upside should oil reach back towards its $150 high, it’s hard to predict just when oil might rebound. As such, I’ve been looking for oil stocks that pay dividends. Read on to find out my favorite stock of the bunch.