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.
But where the process is already underway, there's a great opportunity for investors...
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The way I see it, U.S. and European energy traders will be lucky if the door doesn't hit them in the backsides as everybody heads for the doors.
Like so many Western investors, they still have their blinders on.
They think that if demand in the U.S. and the European Union (EU) begins to slide that oil prices will fall into the toilet right along with it.
But what they don't see is that Asian oil demand is what actually "drives" the global oil market.
This is why today's investors need to adopt an energy investment strategy focused on what is happening on the other side of the Pacific.
Because what happens there is critical to higher prices and profits here.
Here's why.
First, consider Asian demand.
In the fourth quarter alone, Asian demand increased by 400,000 barrels per day even as consumption in the rest of the world fell by 700,000 barrels a day, according to the International Energy Agency (IEA).
Meanwhile, Chinese demand in particular is so strong that the Red Dragon is set to import more oil than the United States within two years, according to my projections.
And don't take my word for it. Goldman Sachs Group Inc. (NYSE: GS) thinks the U.S. will be overtaken by China this year, while the IEA believes it will happen in 2020.
I think that's splitting hairs frankly.
What matters is that Asian oil demand growth is likely to represent a staggering 70% of the world's total oil demand growth this year. Or more depending on which studies you believe.
Like so many Western investors, they still have their blinders on.
They think that if demand in the U.S. and the European Union (EU) begins to slide that oil prices will fall into the toilet right along with it.
But what they don't see is that Asian oil demand is what actually "drives" the global oil market.
This is why today's investors need to adopt an energy investment strategy focused on what is happening on the other side of the Pacific.
Because what happens there is critical to higher prices and profits here.
Here's why.
First, consider Asian demand.
In the fourth quarter alone, Asian demand increased by 400,000 barrels per day even as consumption in the rest of the world fell by 700,000 barrels a day, according to the International Energy Agency (IEA).
Meanwhile, Chinese demand in particular is so strong that the Red Dragon is set to import more oil than the United States within two years, according to my projections.
And don't take my word for it. Goldman Sachs Group Inc. (NYSE: GS) thinks the U.S. will be overtaken by China this year, while the IEA believes it will happen in 2020.
I think that's splitting hairs frankly.
What matters is that Asian oil demand growth is likely to represent a staggering 70% of the world's total oil demand growth this year. Or more depending on which studies you believe.
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