Fisher Investments on Energy

Foreword ix Preface xi Acknowledgments xv Part 1: Getting Started in Energy 1 Chapter 1: Energy Basics 3 Oil & Gas Industry 4 Energy Equipment & Services Industry 14 Chapter 2: What Makes Energy Burn: Key Drivers of the Energy Sector 19 Oil Demand Drivers 20 Oil Supply Drivers 30 Natural Gas Demand Drivers 40 Natural Gas Supply Drivers 45 Additional Drivers 52 Part 2: Next Steps: Energy Details 61 Chapter 3: Energy Sector Breakdown 63 Global Industry Classification Standard (GICS) 64 Global Energy Benchmarks 65 Oil, Gas, & Consumable Fuels Industry 70 Energy Equipment & Services Industry 82 Sub-Industry Drivers 88 Chapter 4: Why We’ll Never Run Dry 103 The World Will Never Run Out of Oil 104 The Tipping Point? 109 Peak Oil and You 116 Peak Oil Reading 118 Chapter 5: Staying Current: Tracking Industry Fundamentals 121 Crude Oil Market Fundamentals 121 Natural Gas Market Fundamentals 131 Refining Margin Fundamentals 136 Energy Equipment & Services Fundamentals 144 Chapter 6: Alternative Energy 151 What Is Alternative Energy? 152 Alternative Energy Drivers 167 Alternative Energy Investment Universe 170 Part 3: Thinking Like a Portfolio Manager 175 Chapter 7: The Top-Down Method 177 Investing Is a Science 177 Einstein’s Brain and the Stock Market 178 The Top-Down Method 180 Top-Down Deconstructed 185 Managing Against an Energy Benchmark 193 Chapter 8: Security Analysis 197 Make Your Selection 198 A Five-Step Process 199 Important Questions to Ask 207 Chapter 9: Energize Your Portfolio 217 Strategy 1: Commoditize 218 Strategy 2: Playing Sub-Industries 219 Strategy 3: Company Bets 228 More Sub-Industry Tips 228 Appendix: Energy Sector Resources 233 Notes 236 Glossary 243 About the Authors 249 Index 250