Time to show some courage.An area of the market that has had everything go wrong has been the energy sector. The federal government pulled its support for all major pipeline expansions except for Trans Mountain, which recently got put on hold by a federal court ruling. Then there has been a mass exodus of capital from the sector as foreigners reallocate to more friendly operating jurisdictions. This means producers have to cut their operating costs in order to accommodate the reduced access to capital and higher costs from increased rail shipments. As a result, size and scale mean everything now leaving many in the junior and intermediate spaces unable to compete. That said, we think this is more than reflected in current valuations as the share prices of many of these producers are trading at the same levels as when oil was at $26 a barrel back in March 2015. Looking ahead, we think this gap cant continue indefinitely and there will eventually be some very rewarding consolidation opportunities.