Foreign Affairs magazine has been a favorite for years and I hope the following encourages you to read the May/June 2013 issue. This edition is full of worthwhile essays including Michael Levi’s America’s Energy Opportunity.
Energy in America
The energy sector hasn’t always been kind to investors and many analysts are wondering if energy’s time is finally here. Whether it is or not, the current state of American energy is worth understanding.
“An energy revolution is unfolding in the United States- but unlike most past or promised revolutions, this one is not confined to a single fuel or technology. After falling for more than two straight decades after 1985, the U.S. crude oil production has now risen for four consecutive years, and in 2012, it posted its largest one-year increase since the dawn of the oil industry more than 150 years ago. Meanwhile, in 2011, natural gas surpassed coal as the United States’ biggest source of domestically produced energy, thanks to surging output and plunging prices. And all this growth in U.S. fossil fuel production has not prevented the rise of zero-carbon energy sources: wind, solar, and geothermal- has doubled since 2008, and prices have plummeted. Moreover, as technological innovations have made U.S. motor vehicles more fuel efficient, the country’s oil consumption has fallen by nearly ten percent since 2005, reversing what previously seemed to be an interminable upward trend.” ~M. Levi
The balance of his essay is worth reading. Please do and then reach out to me to discuss how your investment portfolio may benefit from this knowledge.
The opinions expressed above are just that, opinions. Please consult your investment advisor before investing. The energy sector may not be appropriate for everyone. Because of the narrow focus, sector investing will be subject to greater volatility than investing more broadly across many sectors and companies.