North American Energy: Oil prices may back off from current highs, but the era of cheap energy is over. Oil sold for less than $20 a barrel for 11 of the 15 years from 1986 to 2000. Most economists today would breathe a sigh of relief if the price settled around $45. So oil and gas companies will likely enjoy a favorable market over the next 20 or 30 years.

In addition, companies with large reserves in North America and other safe places have an important strategic attraction. It's likely that the parts of the world with most of the oil will be at risk for either war (the Middle East) or political disruptions (Russia, Venezuela). Reserves in the U.S., Canada, Australia and the North Sea deserve a premium for safety.

Anadarko Petroleum is one of the world's largest independent producers, with 85% of its reserves in Canada, the U.S. and the Gulf of Mexico. And the company is using the flood of cash it's been earning to buy growth.

In August, Anadarko completed the $4.8 billion acquisition of Western Gas Resources, which has sizable gas reserves in the Rocky Mountains. The same month, Anadarko completed the $16 billion acquisition of Kerr-McGee, which has big reserves in the Rockies and the Gulf. Both deals were all cash.