10 Reasons Why Now Is A Great Time To Invest In The Energy Sector

by Bill Powers
Editor, Powers Energy Investor
July 2, 2009

Reason 1: Low Valuations
The 74% drop in the price of crude and a similar drop in the price of natural gas that began in middle of 2008 and continued into early 2009 devastated valuations in the oil and gas sector.'

Reason 2: Peak Oil
Peak Oil means that the world will no longer be able to grow production on a year-over-year basis irrespective of price or new technology.

Reason 3: Peak Natural Gas
According to the US Department of Energy, domestic natural gas production peaked in 2001 19.61 trillion cubic feet (tcf) from 373,304 producing wells.
Natural gas directed drilling on a scale never seen before caused US production to reach a second peak of 20.57 tcf in 2008. However, this second peak is not only unsustainable, but it has set the stage for an enormous collapse in US gas production and a spike in prices in the second half of 2009 or early 2010.

Reason 4: Terrible Investor Sentiment
After a cathartic selling of everything energy in the second half of 2008 and into the first quarter of 2009, many industry insiders and investors have reached a level of despair that has rarely been seen before.

Click here to see the other 6 reasons