Keeping Alternate Energy In Perspective

Includes: FAN, KOL, NLR, TAN, UNG, USO
by: Richard Shaw

As you consider alternative energy (solar and wind, in particular) keep their relative sizes in mind.

Solar is currently 1% of 7% of US energy sources. Wind is currently 5% of 7% of energy sources.

While those sources may grow tremendously, and while some of the companies in the space may do very well, the nation will have to invest heavily in more traditional energy sources in the short-term to make a significant difference in supply and prices.

Alternative energy may be our future, but our immediate solutions must come from traditional energy sources and/or conservation.

There may well be more profit potential in clean coal investments or coal liquefaction or coal gasification, for example, that in wind or solar over the short-term.

This situation may be useful in making choices between ETFs such as:

  • solar (NYSEARCA:TAN)
  • wind (NYSEARCA:FAN)
  • nuclear (NYSEARCA:NLR)
  • coal (NYSEARCA:KOL)
  • oil (NYSEARCA:USO)
  • gas (NYSEARCA:UNG)

The chart above is what the US Dept of Energy, Energy Information Agency says about current energy sources.