Russia: The Greatest Threat to the Energy Markets
There's an old saying, "The more things change, the more they stay the same."
And modern Russia a perfect example of this saying. And this move to the past autocratic methods is creating a very unstable future for the energy markets.
Dr. Moors explains the warning signs in Moscow that are making energy traders start to worry.
To find out what's happening and what it means to you, read on...
- Three Hidden Water Costs That Promise to Boost Energy Prices On average it takes 4.4 million gallons of water to “frack” a well. As Dr. Kent Moors explains, that has big consequences for energy prices. Read more... Read More...
- The Next Big Change in the Energy Markets The energy market is rapidly changing. Dr. Kent Moors explains how to hedge your oil and gas stocks with this simple "insurance policy." Read more... Read More...
Investing in Clean Energy Stocks Just Got More Risky
Despite its promising future, clean energy stocks have proved to be an investing minefield.
Even China-based clean energy stocks are no longer a safe haven. Yesterday (Monday) Suntech Power Holdings Co. Ltd. (NYSE ADR: STP) defaulted on its debt.
Heavy losses caused by plummeting prices for solar panels - which fell 73% from 2010 to 2012 - left Suntech unable to make the payment on a $541 million bond that was due Friday.
The news caused Suntech stock, already down 80% over the past year, to slip another 10%.
While numerous U.S. renewable energy companies have faltered, most notably the 2011 bankruptcy of solar panel maker Solyndra, Suntech is the first Chinese clean energy company that could go under.
What's new is a reluctance on the part of the Chinese government to keep pouring subsidies into money-losing companies.Read More...
- Buy Signal: Top Hedge Funds Are Moving Into Energy There is an easy way to find out where the market thinks a particular sector is heading: Check out the movement of futures contracts held by top hedge fund managers. These days, the signal is clear and pointing in one direction. Check this out. Read More...
Four Timely Moves For The Next Three Crises
Sorry to say, but we are only in a brief "lull" between crises. Nothing was resolved in the eleventh (and a half) hour Fiscal Cliff compromise, and three new crises are coming down the line in 2013. Here's what we face now and how you can still structure your energy portfolio for profits.Read More...
The Path to Energy Independence is More Rocky Than It Seems
You might have seen yesterday's headline in the Wall Street Journal: "U.S. Redraws World Oil Map."
As the article explains, U.S. oil production is now on pace to surpass Saudi Arabia by 2020. This would make the United States world's largest oil producer. We're already the second-largest natural gas producer, according to 2010 EIA estimates.
It's all thanks to the U.S. shale boom that has unlocked billions of barrels of oil and trillions of feet of natural gas from the Appalachian Mountains to the Pacific Coast, from the Bakken in North Dakota to the shale fields of southern Texas.
But all of this fracking has caused some serious economic and environmental problems.
And while I greatly advocate increased drilling and domestic production, we still must address a wide-range of problems now plaguing the shale oil and gas sectors.
After all - with apologies to Voltaire and Spiderman - with such great fortune comes greater responsibility.
That's why I am in the third day of what has become a very interesting conference here in Pittsburgh. It was convened to set the agenda moving forward to deal with the almost invisible aspects of shale oil and gas drilling.
In fact, for the first time, the conference's primary focus will be on the negatives caused by the drilling.
We also have questions surrounding the amount of water required to frack these formations (the process needs a lot of water to break open rock and release hydrocarbons), as well as the ongoing public health fears from the chemicals used.
Now, we are seeing parallel economic problems as well.
In the Marcellus basin, researchers are now recording some of these shortcomings and placing them in four basic categories.
The real concern is that these four problems - in infrastructure, labor, local inflation, and the environment - will remain well after the drilling (and the revenue) has moved on.
So before you decide to declare "energy independence", take a look at some of the downside that may come along with it.
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State of the Union: How to Profit From President Obama's New Clean Energy Challenge
In last week's State of the Union address, U.S. President Barack Obama issued a national challenge: Take the 11.5% of the U.S. electricity that emanates from clean-energy sources and boost it to 80% by 2035.
As with any game-changing direction - landing a man on the moon in a decade, bringing an end to the Cold War, curing cancer, or weaning our economy off of coal and crude oil - leaders such as President Obama provide the enticement.
But the market has to figure out how to get it done.
U.S. Clean Energy Investment Puts Upward Pressure on Rising Food Prices
In U.S. President Barack Obama's State of the Union address Tuesday, he highlighted clean energy investment as a key component of America's future, one that will be reflected in his budget proposal for fiscal 2012.
"With more research and incentives, we can break our dependence on oil with biofuels, and become the first country to have a million electric vehicles on the road by 2015," the president said in his speech to members of Congress. "[I]nstead of subsidizing yesterday's energy, let's invest in tomorrow's."
This commitment to clean energy investment increases the importance of biofuels like ethanol, made from corn and other agricultural products. About 40% of U.S. corn is used to make ethanol, and increased ethanol production leads to higher corn and food prices.