A great sector for value investors right now is the oil and gas equipment and drilling sector. Surprisingly, despite being relatively defensive, the sector is trading at a valuation that is significantly below that of the S&P 500 and its own historic valuation. That said, a valid concern of investors is that the industry has a limited life span as one day we will run out of both oil and gas. However, peak oil is not expected to occur until after 2020 now the huge shale reserves of the U.S. have been uncovered, so demand should rise during the next…
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