Besides recently being crowned the world's second-largest economy, China now has the dubious distinction of spawning the world's longest traffic jam. And it's all directly attributable to China's voracious appetite for energy and automobiles.
A line of cars and trucks 60 miles long (100 kilometers) has snarled the road along the Beijing-Tibet 110 Expressway for the past nine days.
The bumper-to-bumper gridlock, which finally began to ease yesterday (Wednesday), was created by a surge in trucks carrying coal from the province of Inner Mongolia to the suburbs of Beijing, where power plants continue to suck up and incinerate millions of tons of the black rock.
Breaking Down the British Giant: Who Will Buy BP's Best Assets?
There's no question that some of BP PLC (NYSE ARD: BP)'s assets are on the block.
The company said Monday that the total cost of the Gulf oil spill had already risen to $3.5 billion. And while it's too early to estimate the final costs associated with the spill, analysts have pegged the tab at $20 billion to $40 billion. Some even believe the total cost could come in near $100 billion.
BP has already paid $165 million to settle individual claims and agreed to set up a $20 billion escrow fund to absorb further damages. It's also suspended its dividend to conserve cash.
But that's not enough. With costs soaring, BP said in June that it is looking to raise at least $10 billion through asset sales in the next 12 months. With that the run on BP's assets commenced.
New 'Energy Advantage' Advisory Service Uncovers Top Energy-Sector Profit Opportunities
Oil prices will reach a record $150 a barrel in the next 12 months, sending gasoline prices to $3.80 a gallon. Commercial nuclear power will continue its comeback, but as small, sealed "mini-reactors" that can produce energy for up to 60 years - instead of as the hulking power plants of years gone by.
New global-warming regulations will turn air-pollution credits into financial assets that can trade like stocks or bonds. And a little-known U.S. pipeline and East Coast shipping terminal will transform the formerly fragmented U.S. natural-gas market into a fast-moving global marketplace - with profit opportunities to match .
To help investors profit from these global opportunities, Dr. Kent Moors - a career-energy-sector insider who is an advisor to six of the world's Top 10 oil companies and a consultant to some of the world's largest oil-producing nations - has launched the Energy Advantage advisory service.
The "New" Global Energy Sector: "The Profit Opportunity of Our Lifetime"
Oil prices will reach a record $150 a barrel, sending gasoline prices to $3.80 a gallon. Commercial nuclear power is making a comeback - but in "nuclear batteries," instead of in hulking power plants of the past. New global-warming regulations will turn air-pollution credits into financial assets that can trade like stocks or bonds. And China's zooming growth will turn the global energy sector upside down.
If this sounds like a view of the distant future - the global energy sector's own version of "Future Shock" - think again.
All of these "predictions" are becoming a reality, even as you read this. And while these transformative events will likely make the global energy sector more volatile and confusing than ever, they are also creating the largest wealth-creating opportunities that most investors will ever see, says Dr. Kent Moors, a career energy-sector consultant who works with governments and corporations throughout the world.
For all the details on Dr. Moor's energy-sector predictions, please read on...
Money Morning Mailbag: Emergent Natural Gas Market Improves U.S. Fleet Vehicles
The global energy sector is shifting which means huge changes lay ahead for the U.S. natural gas market. Dr. Kent Moors, a career energy-sector consultant who works with governments and corporations throughout the world, says the United States' fragmented natural gas market is "about to become one global market, operating at the speed of light."
U.S. natural gas will play a major part in reducing greenhouse gas emissions by replacing older, inefficient coal plants. Its use is likely to double to 40% of the energy market over the next several decades, according to a study by the Massachusetts Institute of Technology.
The abundance of natural gas - especially shale gas, an unconventional source packed tightly in rock formations - in the United States has driven down natural gas prices, making the fuel more desirable. Shale gas has grown to 15%-20% of the U.S. natural gas output, and as companies design better drilling technology, shale gas reserves will be more easily attainable.
"Natural gas is becoming sexy again, with all this new technology to get the gas out of the shale," Kim Hill, director of the Sustainable Transportation and Communities group for the nonprofit Center for Automotive Research told The New York Times.
Taipan Daily: Profit from Alternative Energy ETF's in Wake of BP Oil Spill
Publisher's Note: Justice is taking a few days off for a family event. We've asked Taipan's Senior Research Director, Sara Nunnally, to step in. Justice will be back next week. But in the meantime, enjoy Sara's insightful look into the Gulf oil crisis, and what it could mean to you and your investments. How many [...]
Buy, Sell or Hold: Enbridge Energy Partners, L.P. (NYSE: EEP) Brings Some Stability to a Volatile Market
It seems like every week there's a new development that forces investors to rethink their investment strategies.
This week we will see the initial consequences of the weekend's all-important Group of 20 (G20) meeting. A lot of very important issues are up for debate among the world's top 20 countries, as are policies that will shape the intensity and distribution of global growth in the months and years ahead.
The meeting will be fraught with controversy as each economy is proceeding at its own distinct pace of growth and faces its own set of challenges.
China, which recently showed a superlative 50% year-over-year increase in exports, has run out of excuses to justify its undervalued currency. The country also is facing strong inflationary pressures, which include labor strikes by workers demanding higher pay.
Hot Stocks: General Electric is Being Powered by China Growth, but Held Back by its Financial Arm
General Electric Company (NYSE: GE) has more than a century of history behind it and it's seen worse times than we're going through right now. It's a global juggernaut, and its foothold in emerging markets - particularly China - makes the company worth looking at.
But at the end of the day, its financial unit is holding GE back, and that isn't likely to change any time soon.
Let me explain.
Eight Semiconductor Stocks To Charge Up Your Portfolio
Today's world literally runs on semiconductors. Virtually every device that plugs in or uses a battery has its functions controlled by semiconductors of one type or another. And, with spending curtailed in the recent financial crisis, many of the semiconductors in use are either wearing out or going out of date. But, good times are here again for semiconductors. Here's how to make a profit on the new semiconductor boom market.
ABB Ltd. Buys Smart Grid Software Maker to Jump Ahead in Energy Management Industry
Swiss engineering company ABB Ltd. (NYSE ADR: ABB) today (Wednesday) announced it will buy software maker Ventyx for over $1 billion to strengthen its position among energy management competitors by offering smart grid electricity distribution.
ABB will integrate Ventyx into its power-systems division, allowing it to provide modern smart grid software to grid operators who want to run a more efficient distribution system. The deal represents electrical engineering companies' need to prepare energy management networks to handle an increasing supply of renewable sources, like wind and solar.
"The big advantage for energy companies, utilities and industrial customers is that they will now have a single supplier of enterprise-wide information technology platforms and power automation systems," said ABB Chief Executive Officer Joe Hogan. "The advantage for our shareholders is a cash-generating acquisition in an exciting growth market, with a strong management team, a highly complementary offering and geographic scope, and an attractive return on capital employed."