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Posts tagged “investing”

By Robert Rapier on Sep 16, 2009 with no responses

Brazil Flexing Its Muscles

A couple of years ago I was thinking about the possible fates of various nations in a world in which depleting oil reserves begin to have a very strong impact on oil prices. I had visions of $100+ oil and eventually $5-10 gasoline, which would place a crushing burden on the U.S. economy. Of course higher prices will motivate people to conserve (and will contribute to recession), and then you may find yourself in a situation in which the supply/demand balance once again tips toward excess supply (as we found ourselves in as oil approached $150/bbl). Prices fall. The economy starts to recover. What happens then? Prices rise, putting the brakes on recovery. This is what I postulated in The… Continue»

By Robert Rapier on Aug 18, 2009 with no responses

Rentech Making Waves

The following story posed a bit of a dilemma for me. In my new role, there will be potential conflicts of interest in some of the stories I may post, and until I elaborate on what I am doing, I am trying to avoid posting anything that might fall into that category. When I first saw this story earlier today – and in fact received the press release from Rentech (RTK) – my first thought was that this sort of fell into that category. Why? Two reasons. First, Rentech’s Senior Vice President and Chief Technology Officer Harold Wright is my former manager and a friend. Second, in my new role I have interests that are of the same nature as… Continue»

By Robert Rapier on Jun 22, 2009 with no responses

U.S. Ramping Up Wind Power Programs Even As Concerns Surface About Possible Declines In U.S. Wind Strength

Once again at DFW Airport, about to make my way back to Europe. So I will be offline for just a bit, but wanted to post the latest from Money Morning, which as I recently explained will be featured here whenever they have topical material to offer. As always, normal caveats apply: I am not an investment advisor. I don’t endorse any specific stocks mentioned in the following story nor the ad at the end of the story. ——————————U.S. Ramping Up Wind Power Programs Even As Concerns Surface About Possible Declines In U.S. Wind StrengthBy William Patalon III – Executive Editor Money Morning/The Money Map Report Just as the United States is boosting its reliance on wind power, a new… Continue»

By Robert Rapier on Jun 16, 2009 with no responses

Mulva on Replacing Oil

My former CEO Jim Mulva spoke today at the National Summit in Detroit, and had some newsworthy comments. Bloomberg reported on his talk: Conoco Chief Says Replacing Oil May Take a Century June 16 (Bloomberg) — ConocoPhillips, the third-largest U.S. oil company, said it may take a century for the nation to replace fossil fuels with alternative energy sources. I don’t know of too many people who think we have a century’s worth of oil left. Natural gas and coal? I also seriously doubt we have that much of either of those, especially allowing for economic growth. What I think this means – in any case – is that we have some potentially difficult times in front of us. However,… Continue»

By Robert Rapier on Jun 10, 2009 with no responses

Time to Switch to Natural Gas?

A couple of articles, both at Seeking Alpha, got me to thinking about whether it might be time to trade in my Petrobras (PBR) stock for something in the natural gas sector. From the first of the two articles: Natural Gas Should Get a Boost from China’s New Demand China has been developing natural gas vehicles for many years, recently the number of vehicles running on nat gas has risen dramatically. For example, the government of Xi’an in western China, a medium size with 8M population, has decided to mandate all city buses and taxis using natural gas. The government website reported 5000 buses and 20000 taxis was using nat gas in 2008, and is expected to grow in coming… Continue»

By Robert Rapier on May 27, 2009 with 1 response

Is the Dark Cloud Over Solar Energy Beginning to Break?

Sitting in DFW Airport, about to make my way back to Europe. I will be offline for a day or so. This seems like a good time for the latest from Money Morning, which as I explained last week will be featured here once a week or so. As always, normal caveats apply: I am not an investment advisor. I don’t endorse any specific stocks mentioned in the following story nor the ad at the end of the story. Personally, I have looked into investing in solar a couple of times, but the stocks always seem extremely pricey. But then that’s also why I never invested in Google. ————————————–Is the Dark Cloud Over Solar Energy Beginning to Break? By Jason… Continue»

By Robert Rapier on May 22, 2009 with no responses

With Oil Prices Poised to Jump as Much as 70%, Every Investor Needs an Energy Strategy

[RR note: This blog occasionally posts guest posts, and energy investing is a topic that is visited on a fairly regular basis. The website Money Morning recently noticed that I had linked to one of their articles, and asked if I would be interested in publishing some of their original energy-related content. Because their energy posts are generally consistent with the theme of this blog - and because I often find myself with little time to post - I will be posting some of their original content here. This doesn't imply that I endorse everything in the story, but then again that was never the case previously with guest posts. These posts are designed to educate and promote discussion, and... Continue»

By Robert Rapier on Apr 1, 2009 with no responses

Dueling Price Predictions

I have seen a flurry of recent predictions on oil and gas prices going forward, so I thought I would share some. Most of them support the thesis I recently put forward that we are setting the stage for another run on prices over the next 3-5 years. But with predictions all over the map, it’s no wonder that people are confused. Miss $4 gas? It’s not coming back any time soon “For retail prices, I expect we’ll see the national average for regular grade gasoline near $2.25 gallon by the May-June period, and about $2.25 to $2.35 a gallon for the July-August period,” said Brian Milne, refined fuels editor at DTN, an Omaha, Neb.-based commodity tracker. Brace Yourself (and… Continue»

By Robert Rapier on Mar 8, 2009 with no responses

Fortune Says Oil Stocks are a Bargain

I certainly can’t disagree with this: Betting on big oil’s comeback The article first argues that oil prices are unlikely to stay low for too long: “Right now, the upsides in the oil sector far exceed the downside risks,” says Fadel Gheit, an analyst at Oppenheimer & Co. “I am absolutely convinced that oil prices will rise.” After last year’s $100 free-fall rocked expectations, that kind of confidence is surprising. But Gheit is not alone; a strong consensus is growing for a price rebound. While crude isn’t likely to rocket back to the sky-high levels of 2008, even bearish analysts admit that oil can’t stay below $50 for long. Those are of course my sentiments as well. I believe that… Continue»

By Robert Rapier on Feb 22, 2009 with 1 response

Investing in Ethanol: A Case Study of Terrible Investment Advice

Comically Terrible Timing In June 2006 I read an article at Financial Sense that promoted ethanol as a great place to put your money:Investing in Ethanol: A “New” Stock Play on Soaring Energy Prices and Why Now is the Time to Invest in this “Fuel of the Future” Among the gems in the article were these: Strap on your seatbelt… an alternative energy source is set to take the world by storm. In this research report, we’ll take a close look at the booming ethanol industry… and how investing in ethanol could prove to be an extremely profitable move for investors. With a mandate from the U.S. government and the obvious need for change, we see this as a fantastic… Continue»