SOLAR TODAY Blog


>>Energy stocks “the only way to make money”
July 27, 2008, 10:11 am
Filed under: Investing

For years, SOLAR TODAY has run articles about investment opportunities in renewable energy — see Rona Fried’s regular column, for instance. We’re so close to the issue that sometimes we neglect to state the obvious.

Here’s an article by investment analyst Chris Nelder that states the obvious with unusual vigor and cogency. In today’s economy, he tells stockholders, energy stocks are the only way to make money. And he’s blunt about why that is: oil production has peaked, while demand for energy has not. This creates an insatiable market for goods and services that reduce demand for energy and increase its supply.

Nelder points out that while stock prices for traditional energy companies have risen 50% to 75% over the past year (on the spike in petroleum prices), stock prices for renewable energy companies have doubled and tripled. And he notes that a few vast energy sources — geothermal and marine energy — are just now becoming investment opportunities.

Over at The New York Times, Thomas Friedman likes it that two business geniuses, T. Boone Pickens and Shai Agassi, are busy promoting vast new energy schemes. It’s not a coincidence that the Pickens scheme attacks the problem of increasing supply, while the Agassi plan attacks the problem of reducing demand.

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