High Oil Prices Will Remain High -
because there are no alternatives
Think Like an Investor and Leave the Talk to Politicians
An article in the weekend Globe and Mail highlights the tremendous expansion of wind power in the U.S. - 45 % growth last year and even more to be built in the near future.
The effect is zero on America's oil consumption.
The AMP has benefited from the push to solar power. The combination of solar and wind power on reducing world energy consumption is above zero - but barely.
The economy of the U.S. is slowing - but the rest of the world is growing and the demand of India and China has not missed a beat.
America was told by Jimmy Carter , thirty years ago , to turn down the heat. Americans did not want to hear that message and they still ignore conservation.
Nuclear Power is no solution in the U.S.
The U.S. Congress talks a lot about nuclear energy but it is China that has an accelerated building program. The U.S. talks about ending oil dependancy - but it is only talk.
Refineries are not being built , exploration is not allowed in coastal waters, the U.S. Congress drags it's collective feet on meaningful conservation.
High Oil Pricing Hurts the U.S. Economy and the U.S. Dollar
John Mauldin wrote recently that at $ 90 a barrel the U.S. trade deficit would be 60 % oil imports. The credit crisis and budget problems will combine to push the U.S. dollar lower - and oil producers ( paid in those cheaper U.S. dollars ) will keep prices high to offset the cheaper dollar.
Where to Invest ?
Put your money into the companies producing oil - the Chevrons and Exxons of the world.
Exxon produces 4.5 million barrels a day - you do the math.
CIBC World Markets - among the only economists to forecast $ 100 oil - predict $ 150 oil by 2012.
Place your bet in the Canadian oil sands - an expanding oil production source in a politically safe environment. Suncor is raising its production by 100,000 barrels a day this year Juniors like Oilexco are finding new oil deposits in the North Sea.
Our new book " Building your AMP Portfolio " has a long watchlist of companies that will profit this year - and for years to come.
It's time to think with your pocketbook.
Jack Bass is the editor of the market letter The Apprentice Millionaire Program available at www.amprogram.com
His newest book is " Building Your AMP Portfolio ".
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