The energy ETF, the XLE, is trading near its 52 week lows. Unless the world falls into a deep recession, oil demand should stay healthy. Yes the speculative bubble had been popped. The oil companies are more likely to trade on fundamentals. The damage done to this sector is severe but now is the time to start picking at it. Once the selling by the hedge funds are done, the energy sector should start climbing back up at a more gradual pace.