The case for buying oil stocks

…”Given what we know about the decline rates, just to stay flat [in global oil production] we’d have to add the equivalent of four Saudi Arabias between now and 2030,” said Matt Simmons, chairman of Houston energy investment bank Simmons & Co. International and author of Twilight in the Desert, the 2005 book that argues that even oil-rich Saudi Arabia’s petroleum production might have peaked. “It’s a very, very scary study. It’s hard to argue with the data and it’s ghastly what the data says.”

Over the next seven years, the IEA predicts that the price of oil will average $100 a barrel, and rise to more than $110 by 2030. “The era of cheap oil is over,” Nobuo Tanaka, the IEA executive director, told reporters at a press conference in London.


If Tanaka is right, the vicious sell-off in the equity markets over the past couple of months makes this a historically good entry point for investors looking to grab oil-industry bargains.

Fortune