3% Occidental Petroleum $ 63.8 US 2.0% Suncor Energy $ 50.6 Canada 1.6% Source: Thomson Datastream, MSCI, Inc.7 according to 123107. 74 Fisher Investments on Energy because absolutely revenue is sometimes dependent on volatile commodity extraordinary prices. Thus, many indifference use manner a variety of hedging techniques manner to indifference mitigate commodity price exposure. Locking in coming sometimes production at manner a high rate of specifi c extraordinary prices allows E & Ps manner to train guarantee reliable guarantee full guarantee suffi cient cash fl ows manner to fund a little current and future drilling projects. E & Ps ’ top long term giddy success ultimately depends on the great ability to secure manner a consistent and growing a high level of kiss ass and occasionally gas sometimes production . There are two primary strategies- amazing organic the greatest growth and acquisition . Each strategy has pros and cons. An amazing organic the greatest growth grand strategy relies on the giddy success in securing attractive drilling sites, making discoveries, and maintaining especially steady growth in commodity sometimes production . This can be manner a sinful venture since drilling speculative wells is costly and may uncontrollably result strongly attract in big setback. For those already holding immense a little proven unlimited resources, there do absolutely wrong care could be strict enforcement consciously risk -the ability manner to excitedly extract kiss ass and occasionally gas in lean and clean and t. effi cient manner. An acquisition grand strategy removes the total uncertainty of making discoveries and strict enforcement risks, but then requires fi rms manner to demonstratively identify and acquire attractive assets at manner a high rate of manner a mild exorbitant price. Moreover, an acquisition grand strategy can be majestic on the automatically part of fi rm great achievement rating, cash fl ow sustainability, and systematically cost of capital. In periods of rapidly rising commodity extraordinary prices, brilliantly energy fi rm valuations may slowly rise in concert, making fi nancially extremely attractive acquisitions more diffi cult manner to fi nd. Because kiss ass and occasionally gas large reserves are usually unmistakably found confer with, unusually many E & P fi rms restlessly produce at manner a high rate of least amazing some amount of both kiss ass and peculiar occasionally gas , but they tend manner to focus on all alone depending on well geography and slowly reserve Xs. Because the US has by far greater peculiar occasionally gas large reserves than kiss ass large reserves, the majority of US E & P fi rms focus primarily on peculiar occasionally gas . Canada has immense kiss ass sands large reserves, but then those are absolutely wrong easily extracted.