The Energy Sector 77 rising by 60% by 2030, the world energy market would need $16 trillion of cumulative investment between 2008 and 2030 or $580 billion a year. Even this estimate is based on unrealistically low estimates of investment cost and outdated assumptions about the sophisticated exploration, development, and produc- tion technology and equipment needed in modern oil fields. Yet it still requires vast transfers of capital. This capital should flow to the major oil and service firms over the next decade. Strong Financial Position A strong financial position is always important to an energy firm, as the capital requirements for exploration and development are very high. Strong balance sheets with low debt levels, high re- turn on equity, and significant free cash flow generation are key drivers to success in the energy sector. The generation of posi-