Bobco23

How Will Temporary Decline in Oil Prices Impact Energy Sector?

I think you have the essence of the entire problem. Being green feels good, but it is inefficient, ineffective, and costly. The btu inputs relative to the btu outputs to these alternative energy solutions are greater than the current solutions.

This "green bubble" would have burst if it had had a chance to gain momentum and evolve. This recession nipped it in the bud. That saved a lot of us from making stupid momentum investments.

I don't know any more than anyone else on the severity of the recession, but in my 65 years I have never seen the economy heading down hill so fast. From that I suspect we are in for a long bear market. "Think the unthinkable." (El Arian of Pimco). We could see a multi-year recession that kills green companies and severely retards hydro carbon companies. I think betting on consolidation in the energy sector (APA, APC, DVN, MRO, OXY, etc.) is a resonable bet and that it will occur, but it could be years before you get a buy-out gain. I also believe oil and gas prices will rise, but in a world wide and severe recession (maybe a depression) it could be years before that rise occurs and translates to profits. What plausible scenario is there that would increase the demand for oil and gas in the near to medium term?

There is no where to safely invest. Capital preservation should be every investor's concerns. Good times are unlikely to return anytime soon. Investing in alternative energy solutions is a fool's game.


On Dec 07 11:57 AM auto 44 wrote:

> I worked in the home heating and air conditioning industry all my
> adult life with the exception of four years working on supersonic
> aircraft in the air force during the vietnam war. It is my understanding
> that that converting hydrocarbon fuel to electicity and pushing it
> all the way from the source to the point where it is used is an extremly
> in efficient process. It doesn't work for something as simple as
> creating heat. I find it hard to understand how this is at all green
> technology. My guess is that not only do hybrid cars cost more to
> run but that over all they are actually bigger poluters.