Some cynics will argue that the annual G8 Summit is nothing more than a chance for world leaders to eat and drink well in a scenic resort area.

With oil cruising above $140 per barrel and natural gas at its highest levels since late 2005, it’s hard to imagine that there could be any energy-related sectors that aren’t flying higher.

It’s become fashionable to blame rallies in commodity prices on excessive speculation, gas gauging and Big Oil. But the real reason for the jump in crude oil and natural gas prices is simple fundamentals.

In the wake of the 1986 Chernobyl nuclear disaster in the Ukraine, public opinion in Europe turned increasingly anti-nuclear. But, sentiment is clearly shifting back in favor of nuclear and several nations are now taking steps to actually extend the operating life of existing plants or build brand new reactors.

Coal is public enemy No. 1 for most environmental activist groups. Certainly, there’s some logic behind that opposition; after all, coal plants emit more sulphur dioxide, mercury and nitrous oxides than other fossil fuels.

Publicly traded master limited partnerships (MLP) have had a rough run since last July despite generally strong fundamental performances. If history is any guide, this marks an outstanding buying opportunity for the group.

Earlier this week, I attended the Energy Information Administration’s (EIA) annual energy conference in Washington, DC. This year’s conference was a two-day event marking the 30-year anniversary of the EIA’s founding as the statistical and research arm of the US Dept of Energy.

The term driller is among the most overused and misunderstood in the energy patch. Some pundits seem to use the word to refer to exploration and production (E&P) firms that actually drill for and produce oil and/or natural gas.

There are few countries or regions of the world that are seeing real growth in oil production. The simple fact is that the large onshore fields that have met the world’s oil demand for decades are now mature and already seeing declining production.

For most of the past three years, the fastest growth in the energy patch could be found offshore and overseas. Natural gas prices have been weak, and US and Canadian drilling activity is driven largely by gas, not oil. Therefore, companies with exposure to North American gas markets have vastly underperformed the broader energy indexes.