There's significant upside for the entire sector. The earnings potential will be huge going into next year. They'll be able to pay down a significant part of debt, buy back stock.

It's a fabulously run company.

In a perfect world, you'd take the premium out, and you're looking at an oil price in the lower- to mid-30s. But it is not a perfect world.

When investors start to look for safe havens to put money into, they'll look to energy. Domestic integrated oil companies will do really well. Most likely, the companies that will get a bigger push are the more diverse International integrated oil companies like Exxon-Mobil. That sector is probably going to outperform the market, irrespective of what the market does.

There's concern that Iraq knows it's in a position that if it pulls its production off the market it would have significant implications on moving oil prices sharply higher.

Absolutely, I'm worried about that.