GuruFocus Updates 4 September 2010 Featured No Comment

By CanadianValue. I spend a lot of time looking for value in energy companies. I certainly am more interest in oil weighted producers as I believe we are going to need every bit of oil we can find in the coming decade.

With respect to oil, the battle between supply and demand is one where both sides are pointing to tightness in the market in years ahead.

Our supply has peaked. Not the pure amount of oil, but rather the daily rate at which we can pull it out of the ground. Currently we rely on several enormous oil fields which flow at prodigious rates. Year after year the amount they produce declines. We just don’t find oil fields of that size these days, and therefore it is very tough to add production just to offset the declines, never mind grow production significantly.

And the demand equation is even more obvious. Read more » »