Energy is a required core asset with a predictable, hedgeable, and protectable value; little reliance on the “psychology” of the global or local marketplace; an inherent indifference to interest rates or public market sentiment; possessing a natural hedge against inflation; providing favorable tax treatment; and with an uncertain supply and a continually increasing demand.
In this interview, Fadel Gheit discusses the effect of Middle Eastern geopolitical issues on oil production, dissects the changing oil and gas production situation in the U.S. and explains how the shift in natural gas prices has turned the refinery business from the industry's perennial ugly duckling into a beautiful swan.
Energy pundits sing natural gas' praises, but Bill Powers, author of "Cold, Hungry and in the Dark: Exploding the Natural Gas Supply Myth," isn't buying it. He sees serious flaws in how reserves are reported.
Although miners are far more technologically conservative than oil producers, today's tough financing environment may prompt technological advancements in a sector that has historically approached processing "with brute force rather than finesse."
What will it take for alternative energy to deliver the returns investors have dreamed of? Continued global economic recovery, unsubsidized demand and prices that give customers a green incentive without added costs.
The truth, in regards to the world’s mineral resources, is that we in the western developed countries are not in control of supply. There are many serious concerns in regards to global resource extraction that we need to consider.