Alternative Energy Shares July 21, 2006
Posted by CamdenKiwi in : Investing, Little Green Portfolio , trackbackThere’s a useful article on how alternative energy companies might develop over the next few years here, making the points that their values are tied to the price of oil, and that they are all fairly long term plays.
Although the alternative energy companies have done well over the last year, they’ve been badly affected by the recent market falls.
The oil price has gone up again in the last few days, presumably because of the war in Lebanon (and it is a war, not just a ‘crisis’ as the BBC insists), though hopefully that will calm down soon. Certainly the rise in the oil price in the last year or so owes at least as much to problems in the Middle East than any real consideration of oil reserves dropping.
In many ways, the move to alternative energy seems likely to be driven far more by geopolitical concerns, and the desire of nations to make their energy supply secure than by concerns about global warming and carbon emissions. Frankly, I don’t care how we get there, so long as we move away from our dependence on fossil fuels, and don’t take the dark road to nuclear.
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