In places where energy supplies face the most pronounced crunch, they need to integrate energy sources in a more seamless manner.
It's a no-brainer and one element in the "new energy balance" that I have discussed over the past year.
This balance is less about finding a silver bullet (a breakthrough technology) than about finding a more efficient way to combine existing sources.
As this balance works itself out – sculptured by necessity, profit, competition, and innovation -more segmented sources of energy, each satisfying a portion of required demand, will come online.
Instead of looking for a replacement for crude oil, we must find a better way to integrate the entire energy spectrum to satisfy this new energy balance.
The most basic part of this is an ability to exchange energy sources, thereby enabling users to offset supply problems or availability considerations by rapidly exchanging sources. Certainly, some bottlenecks will exist in this process, and, in some cases, the balance remains elusive.
But where the process is already underway, there's a great opportunity for investors.