Focus on Subsectors in Energy Investments

In energy investments, it is crucial to focus on subsectors rather than treating energy as one big entity. By analyzing subsectors like light oil, crude oil, natural gas, LNG, transportation, infrastructure, midstream, refining, downstream, and alternative energy, opportunities within the energy sector can be identified. Subsectors do not always move in unison; they can work for or against each other. By understanding the dynamics of different subsectors, such as the impact of service companies raising prices or excess pipeline capacity on producers, informed investment decisions can be made based on the global commodity cycle.