Sitting in a new land of plenty, Americans rarely notice disturbing energy trends elsewhere in the world.
But in the course of my global work, it's impossible not to recognize there are serious energy shortages developing in other parts of the world.
In fact, I'm beginning to see worrisome indications this energy "crisis curve" is now accelerating.
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The Government Foil to Energy Independence (and Profit)
As the rush to export liquefied natural gas (LNG) gathers steam, the Energy Advantage portfolio is primed for even bigger gains.
Make no mistake, LNG exports are now set to hand us one of the best investment opportunities of the decade.
That's a stunning reversal from just seven years ago, when everyone agreed the United States would be using LNG imports to meet 15% of its gas needs by 2020.
However, the unconventional shale boom (shale, tight, and coal bed methane) has changed everything we used to think about natural gas.
Now, even the most conservative Russian estimates acknowledge that the U.S. could be providing between 6% and 8% of all LNG exports worldwide by 2020.
In fact, Cheniere Energy Inc. (NYSE: LNG) has already garnered no fewer than five huge, multi-billion dollar, 20-year contracts with some of the largest European and Asian importers.
But new developments have suddenly thrown up another hurdle that threatens to delay all of this economic promise.
Here's the countermove that's brewing in Washington, D.C…Full story...
- This Is a Clear Path to Profits (Even in Volatile Markets) It was quickly becoming OPEC's worst nightmare: By the mid-1980s, oil prices had begun to collapse. What's more, renegade cartel members were selling more oil than their monthly quotas allowed, which merely made a bad situation even worse. Ordinarily, that was a point when the Saudis usually would step in and cut their own exports. But by then, the pricing situation had become untenable. Instead, the Saudis embarked on a bold new strategy. First, they opened up their own spigots and flooded the market with crude. This taught those recalcitrant OPEC members a big lesson about lost revenues. Second, they also introduced a "netback" pricing strategy that proved to be far more important - both for them and today's energy investors. This new strategy considered the entire pricing sequence, using refinery margins (the difference in cost between processing and prices on the wholesale level) as a measure of prices upstream and downstream. Now, 28 years later, the same netback strategy has made a comeback that has handed us a clear path to profits - even during periods of high volatility. Here's how this strategy works... Full Story Read More...
We Found a Clear Path to Energy Profits, Even in Volatile Markets
It was quickly becoming OPEC's worst nightmare. By the mid-1980s, oil prices had begun to collapse.
What's more, renegade cartel members were selling more oil than their monthly quotas allowed, which merely made a bad situation even worse.
Ordinarily, that was a point when the Saudis usually would step in and cut their own exports.
But by then, the pricing situation had become untenable. Instead, the Saudis embarked on a bold new strategy.
First, they opened up their own spigots and flooded the market with crude. This taught those recalcitrant OPEC members a big lesson about lost revenues.To continue reading, please click here...
How your Grandchildren can Reap Profits with These Nuclear Stocks
Three Mile Island. Chernobyl. Sellafield. Fukushima.
These are just the most famous names from an alarmingly long list of civilian nuclear incidents. Each of these accidents resulted sparked intense public debate on the future of civilian nuclear power.
Is it really safe? What do we do with the waste? It'll be toxic for tens of thousands of years? How bad will the next accident be? What kind of trade-off are we making? These are just some of the questions mooted in the wake of these and other nuclear accidents.Read More...
- New Arab Spring Could Breed Chaos in the Energy Markets As Dr. Kent Moors explains, growing unrest means Pakistan is now ground zero when it comes to energy markets in the Middle East. Read more... Read More...
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...
- Energy Investors Will Love These New MLPs The "midstream" segment in oil and gas markets is undergoing some very interesting changes these days. It is diversifying in an exciting way for income investors. MLP "clones" are starting to emerge, controlling more expanded activities and new product-specific focuses that never existed before. That means brand-new investing opportunities for you. Here's what's so interesting about this new development... 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...
- How to Play by the Rules and Beat the Tax Man with MLPs Paying taxes is about a pleasurable as a root canal. But as Dr. Kent Moors explains, you can ease the pain by investing in Master Limited Partnerships, or MLPs. Here's how. Read More...
- This Shifting Balance Will Have a Huge Impact on Energy Investors As the new balance emerges, we will see a realignment of global energy prices. And both the sourcing and use of energy will open up significant opportunities worldwide. Here's what's causing the shift. Read More...
Why I Cancelled Everything in Germany and Took the Next Flight to Dubai
Something big unfolded on my trip to Frankfurt last week.
It began with meetings in Germany over natural gas prices. They morphed into a discussion on how government subsidies affect energy prices. Our conversation turned to a recent IMF report that criticized taxes on energy - specifically pre-tax concessions - those provided by governments to producers in oil exporting countries.
That led four of us to drop everything in Germany and fly to Dubai, so we could hash out the matter firsthand with some of the folks responsible for those tax benefits.
What we learned there could change everything in the global energy markets and have huge consequences for energy investors around the world.
Remember, you heard it here first… 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...