Is This The End For Oil?

Is This The End For Oil?

a Energy is top of mind for investors in the Canadian equity market. After all, energy makes up 19% of the S&P/TSX Composite Index, the second-largest sector after financials. And, a quick scan of the financial page headlines of our national newspapers shows the energy sector is struggling:

• “Oil prices fall 2 per cent, supply overhang back in focus”
• “Oil drops below $30, dragging TSX, Wall Street down with it”
• “Oil falls for third day as concerns about growing glut deepen”
• “‘Zombie’ stocks haunt Canada’s oil patch, but buyers aren’t biting in worst bear market in a generation”

With headlines like these, it’s understandable to question whether it makes sense to own energy companies at all, and to feel the...