If you’re looking for a way to play the energy sector, here are some thoughts from Ambsose Evans-Pritchard that you might want to consider. My favorite doomster turns his attention to the oil markets and has some interesting observations.

He properly notes that the world needs oil at $70 or above in order to bring on newer more expensive fields. The same holds true for biofuels, which love them or hate them, account for a meaningful supply at the margin. Declining production in existing fields — Alaska, the North Sea — must be replaced by new reserves in much more difficult production environments.

Mr. Evans-Pritchard makes the excellent point that despite the Obama administration’s noise about renewables and green energy, the reality is that industry participants are falling like flies. Continuing opposition to nuclear and the long lead time that’s required to bring on a nuclear power plant mean that future energy sources that could substitute for oil are diminishing rather than increasing.

The bottom line, obviously, is that from an investors standpoint oil is a pretty obvious play. When it comes roaring back is dependent on economic recovery, but assuming that happens there seems to be little to stand in the way of a boom. How you play it is naturally the question and Mr. Evans-Pritchard has some interesting suggestions.