Energy Sector

What is the 'Energy Sector'

The energy sector is a category of stocks that relate to producing or supplying energy. This sector includes companies involved in the exploration and development of oil or gas reserves, oil and gas drilling, or integrated power firms.

BREAKING DOWN 'Energy Sector'

Performance in the sector is largely driven by the supply and demand for worldwide energy. Energy producers will do very well during times of high oil and gas prices, but will earn less when the value of energy drops. Furthermore, this sector is sensitive to political events, which historically have driven changes in the price of oil.

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RELATED FAQS
  1. What factors are the primary drivers of share prices in the oil and gas sector?

    Learn the primary drivers behind changes in the share prices of the oil and gas sector. The oil and gas sector is a cyclical ... Read Answer >>
  2. What are the main reasons an investor should consider an allocation to the oil and ...

    Learn three of the main reasons for investors to consider making some asset allocation to investments in the popular oil ... Read Answer >>
  3. What is the average growth rate of the oil & gas drilling sector?

    Learn about the growth rate in the critically important market sector of oil and gas exploration and production, and see ... Read Answer >>
  4. What are risks associated with investing in the oil & gas drilling sector?

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  5. How does the risk of investing in the oil and gas sector compare to the broader market?

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