Energy sector favored for long-term gains amid tight supply and rising demand, with focus on cash flow and reserves.

Investor Leo Nelissen highlights the energy sector as his top choice for long-term investment due to prudent capital allocation, shrinking reserves, and underestimated demand growth. Despite recent strong performance, he plans to buy on price dips when geopolitical risks ease. Large exploration and production companies prioritize free cash flow and reserve protection over increasing production, supporting a positive supply outlook. Nelissen favors high-margin Permian producers, landowners, midstream companies, and Canadian oil sands majors for their strong fundamentals and growth potential.