Energy companies reported robust third-quarter profits this week in another sign that rising global energy demand is something investors can't afford to ignore.
Exxon Mobil Corp. (NYSE: XOM) reported yesterday (Thursday) its third-quarter net income rose 55% from a year earlier to $7.35 billion, or $1.44 a share - the biggest jump in six years. Royal Dutch Shell PLC (NYSE ADR: RDS.A, RDS.B) reported its third-quarter profit rose 18% from the year before, noting it's in a "delivery window for new growth," and ConocoPhillips (NYSE: COP) said its third-quarter profit more than doubled.
"Global oil demand implications have continued to surprise to the upside," Barclays Plc (NYSE ADR: BCS) analysts wrote in an Oct. 20 note to clients.
Money Morning Chief Investment Strategist Keith Fitz-Gerald addressed the importance of energy industry investing earlier this week on a Fox Business Network appearance.
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Money Morning Mailbag: Rising Global Energy Demand Is Providing Key Investor Opportunities
China Ousts U.S. as Most Attractive Market for Renewable Energy Investing
China for the first time has overtaken the United States as the most attractive country for renewable energy investment, according to a quarterly index ranking released yesterday (Wednesday) by accounting firm Ernst & Young.
As the world's biggest energy consumer, China set a goal to generate 15% of its electricity from renewable sources by 2020 - up from 9% in 2008 - and has been encouraging investment in its clean energy companies to make its target.
"China has all the benefits of capital, government will, and it's a massive market," Ben Warren, Ernst & Young's environment and energy infrastructure leader, told Bloomberg. "We would expect to see China retaining a dominant position."
As the world's biggest energy consumer, China set a goal to generate 15% of its electricity from renewable sources by 2020 - up from 9% in 2008 - and has been encouraging investment in its clean energy companies to make its target.
"China has all the benefits of capital, government will, and it's a massive market," Ben Warren, Ernst & Young's environment and energy infrastructure leader, told Bloomberg. "We would expect to see China retaining a dominant position."
The End of the Cap-and-Trade Masquerade Opens New Doors For Investors
When U.S. Sen. Harry Reid, D-NV, last week disclosed that the so-called "cap-and-trade' energy proposal that passed the U.S. House of Representatives last year would not be taken up by the Senate, climate-bill proponents were deeply dismayed.
Indeed, Financial Times columnist Clive Crook even said that the United States "has let the world down on climate."
But here's the irony. With the Senate's refusal, we may just have moved a step closer to a climate change policy that will actually work. And that's good news for U.S. taxpayers. And it opens new doors for U.S. investors.
Indeed, Financial Times columnist Clive Crook even said that the United States "has let the world down on climate."
But here's the irony. With the Senate's refusal, we may just have moved a step closer to a climate change policy that will actually work. And that's good news for U.S. taxpayers. And it opens new doors for U.S. investors.
To see the sectors that will benefit from the likely direction of climate reform, please read on...
Energize Your Portfolio With These Four 'Smart-Grid' Technology Plays
Larry Fisher spends all his time lately designing new ways to conserve electricity.
As the research director of NextGen - the division of private, New York City-based ABI Research that tracks smart grids worldwide - Fisher has more and more on his plate these days. That's because the wave of new investment in this emerging sector is just beginning.
NextGen also serves as an incubator for brand-new approaches in electronics and smart-grid technology. Over the past several years, the groundwork for smart grids has emerged in a number of countries, Fisher says. For that reason, the rates of both investment and implementation are increasing.
In a brand new report, Fisher's research team estimates that we will spend some $45 billion worldwide between now and 2015 on smart-grid-related transmission-and-distribution (T&D) infrastructure, implementation of related components at the level of utility companies distributing the power to consumers, and smart meters. (These last ingredients allow you to measure usage and redistribute power on your own.)
When compared to the trillions spent on generation and transmission, $45 billion may seem like a pittance.
But it certainly does indicate that a change is approaching. And for certain companies that find themselves in the middle of this significant energy revolution, it's going to mean lots of profits.
As the research director of NextGen - the division of private, New York City-based ABI Research that tracks smart grids worldwide - Fisher has more and more on his plate these days. That's because the wave of new investment in this emerging sector is just beginning.
NextGen also serves as an incubator for brand-new approaches in electronics and smart-grid technology. Over the past several years, the groundwork for smart grids has emerged in a number of countries, Fisher says. For that reason, the rates of both investment and implementation are increasing.
In a brand new report, Fisher's research team estimates that we will spend some $45 billion worldwide between now and 2015 on smart-grid-related transmission-and-distribution (T&D) infrastructure, implementation of related components at the level of utility companies distributing the power to consumers, and smart meters. (These last ingredients allow you to measure usage and redistribute power on your own.)
When compared to the trillions spent on generation and transmission, $45 billion may seem like a pittance.
But it certainly does indicate that a change is approaching. And for certain companies that find themselves in the middle of this significant energy revolution, it's going to mean lots of profits.
Buy, Sell or Hold: Siemens AG (NYSE: SI) Will Benefit from Germany's Strength and the Euro's Weakness
The euro has suffered from the Greek debt crisis, and Spain and Portugal also are under closer scrutiny. But there are still significant opportunities for profit in the Eurozone.
Germany, for example, has the lowest debt to gross domestic product (GDP) ratio of all the major advanced industrial economies. And right now, it is taking measures to bring its budget deficit quickly into line. Despite a very rigid labor system, Germany is the second-largest exporter in the world, right after China. And the recent euro sell-off has given an extra "subsidy" of some 25% to German exporters.
This "subsidy" is likely to last for quite a while, since the structural situations of weaker European Union (EU) member countries will take time to resolve. It goes way beyond just having European banks pass some stress tests. So we are going to take advantage of a prudently managed exporting powerhouse with Siemens AG (NYSE ADR: SI).
Siemens is a conservatively run firm. It has very low levels of debt, which is rated in the middle of the investment grade scale (A). And despite the weakness in Europe, it has managed to increase its bottom line by 50% from last year's levels.
Germany, for example, has the lowest debt to gross domestic product (GDP) ratio of all the major advanced industrial economies. And right now, it is taking measures to bring its budget deficit quickly into line. Despite a very rigid labor system, Germany is the second-largest exporter in the world, right after China. And the recent euro sell-off has given an extra "subsidy" of some 25% to German exporters.
This "subsidy" is likely to last for quite a while, since the structural situations of weaker European Union (EU) member countries will take time to resolve. It goes way beyond just having European banks pass some stress tests. So we are going to take advantage of a prudently managed exporting powerhouse with Siemens AG (NYSE ADR: SI).
Siemens is a conservatively run firm. It has very low levels of debt, which is rated in the middle of the investment grade scale (A). And despite the weakness in Europe, it has managed to increase its bottom line by 50% from last year's levels.
Profit From the First Biofuel Winner - Before it Goes Public
Weeds are hardly my favorite flora. My hay fever doesn't like them and neither does my lawn. But a flax called camelina - needing little nitrogen and water - may just be the first big winner in renewable biofuels.
It is going to provide investors with a whole new way to play the renewable energy market. And its impact will be, quite literally, up in the air.
Anybody who flies has been feeling the pinch of exploding ticket prices. Having jetted over a quarter of a million miles in the last 18 months, I can attest to the connection between rising fuel prices and ticket hikes. And without a major change in how we source jet fuel, this problem will simply get worse - especially with ridership slowly returning as the crisis bottoms out.
Jet fuel is already imported in greater volume, and the refineries that can provide it reliably worldwide are limited. That's because refining puts jet fuel (which is really high-level kerosene) among the so-called "middle distillates" - along with diesel and low-sulfur heating oil. But prioritizing the need for high-octane gasoline ("light distillates") has taken up more of the available refinery capacity.
They're producing less diesel and jet fuel than the market requires, pushing up the price.
And jet biofuel may be an answer.
It's hardly theoretical.
It is going to provide investors with a whole new way to play the renewable energy market. And its impact will be, quite literally, up in the air.
Anybody who flies has been feeling the pinch of exploding ticket prices. Having jetted over a quarter of a million miles in the last 18 months, I can attest to the connection between rising fuel prices and ticket hikes. And without a major change in how we source jet fuel, this problem will simply get worse - especially with ridership slowly returning as the crisis bottoms out.
Jet fuel is already imported in greater volume, and the refineries that can provide it reliably worldwide are limited. That's because refining puts jet fuel (which is really high-level kerosene) among the so-called "middle distillates" - along with diesel and low-sulfur heating oil. But prioritizing the need for high-octane gasoline ("light distillates") has taken up more of the available refinery capacity.
They're producing less diesel and jet fuel than the market requires, pushing up the price.
And jet biofuel may be an answer.
It's hardly theoretical.
Seven Ways to Profit From the Obama Administration's New "Clean Energy Economy" Push
After Wednesday night's State of the Union address, the Obama administration has added a new mantra to its lexicon.
Welcome to the "Clean Energy Economy."
In a speech in which embattled U.S. President Barack Obama badly needed to reinvent himself, the nation's chief executive focused on initiatives designed to add value to the U.S. economy and create jobs. Clean energy technology was front-and-center as one of those initiatives.
Welcome to the "Clean Energy Economy."
In a speech in which embattled U.S. President Barack Obama badly needed to reinvent himself, the nation's chief executive focused on initiatives designed to add value to the U.S. economy and create jobs. Clean energy technology was front-and-center as one of those initiatives.
The Real Story Behind Solar Energy in 2010
By the time 2009 is in the books, the record will show that solar energy stocks endured a tough year. That's hardly a surprise, given that so many Wall Street analysts (yours truly not among them) lambasted the sector for much of the year.
Analysts also expect the carnage to continue into 2010, and are predicting losses for as many as half of the world's solar companies.
The "thought process" of a Wall Street analyst - and I use that title loosely - goes something like this:
Analysts also expect the carnage to continue into 2010, and are predicting losses for as many as half of the world's solar companies.
The "thought process" of a Wall Street analyst - and I use that title loosely - goes something like this:
As Solar Sector Goes Global, Investors Can Capitalize on Dawning of a New Industry
By Jason Simpkins Associate Editor Back in the 1970s, when solar energy was brand new, it took as much energy go make a solar cell as that device would produce over its 20-year lifespan. Just a decade ago, solar-cell emissions were very high - about double their current levels. But with recent technological advancements, solar […]
Solar Rivalry Heats Up as Q-Cells Moves Into Malaysia
By Jason Simpkins Associate Editor German solar cell maker Q-Cells announced strong full year results and said it plans to expand its production capacity by investing $263.2 million in its first production site in Asia. Q-Cells said in February that it had become the world's leading manufacturer of solar cells. In its 2007 preliminary results, […]
Going Green & Going Global: The Future of the Automotive Industry
By Jason Simpkins Associate Editor The automotive industry is one of the most competitive in the world. It's so competitive that the Ford Motor Co. (F), founded in 1903 by Henry Ford the legendary pioneer, innovator, and father of the assembly line, has fallen all the way to the third spot in U.S. auto sales. […]
Gray Skies Are Going to Clear Up: Profiting From China's Green-Tech Movement
By Jason Simpkins Associate Editor Money isn't the only thing flowing through China right now. Pollution has filled the streets, contaminated the rivers and clouded the skies. Half of China's population - 600 people to 700 million people - drinks water contaminated by human and animal waste. In fact, 1 billion tons of untreated sewage […]
EU Presses for More Energy Control
By Jason SimpkinsStaff Writer The European Commission yesterday (Wednesday) introduced a plan calling for a massive restructuring of power grids throughout the continent. The plan was designed to reduce the region’s vulnerability to the massive energy companies that control the production and transmission of gas and electricity. Currently, large energy companies monopolize energy production and […]
In Ireland, Green Means Go as Investors Watch Their Wealth Soar
Reasons to invest in Ireland
Potential Battery Woes Reportedly Cause Toyota to Delay Hybrids
From Staff Reports Toyota Motor Corp. (NYSE: TM) has delayed the product launch dates of some proposed new high-mileage hybrid cars that will use lithium-ion battery technology. The Wall Street Journal said that major safety concerns relating to the new type of batteries was behind the decision. The decision is a blow to Toyota, whose […]