Description
Book SynopsisThe first offering from the Fisher Investments On investing series is a comprehensive guide to the Energy sector. The book can benefit both new and seasoned investors, covering everything from Energy sector basics to specific industry insights to practical investing tactics, including common pitfalls to avoid.
Table of ContentsForeword 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
