Key Drivers of the Energy Sector
Fisher Investments believes not all economic sectors are created equal. Each has a set of economic, political, and sentiment factors, or drivers, making it unique to the broader economy. Properly understanding those drivers is a key to investing success in any sector, particularly the Energy sector.
Economic and stock market drivers evolve and change in relative importance over time -- what's vital in 2008 may not be in 2010 and beyond. Nevertheless, Fisher Investments believes drivers discussed in this chapter are a good starting point for any Energy analysis, regardless of the investing environment.
While by no means comprehensive, Fisher Investments believes a list of important Energy drivers includes:
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Commodity prices
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Oil and gas production growth
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Finding and development costs
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Exploration and production capital expenditures
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Refining margins
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Share buybacks and mergers and acquisitions (M&A) activity
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Sentiment
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Taxes, politics, and regulations
For more information or to purchase Fisher Investments on Energy, click here