PEAK OIL?

There is much talk about PEAK OIL and the fact that we are already there or a few years away from the "peak" in oil production but at same time we have RISING demand!!!! mainly from CHina/Asia which is only going to intensify. See links below and begin your journey to understanding this important global issue. IS THERE A FINITE (of course) supply of oil and if so, what can we do about it?

ONE article I read said we have already gone thru 1/2 of all known oil, and in 20 years or so there wil be NO MORE OIL!? A horrid thought, how so do we then run our industrial complex, move people from place to place, cool or heat our homes?

IMHO, world governments should move IMMEDIATELY and mandate much greater fuel efficiency from the car makers and a faster adaption of hybrid technology. I feel Fuel Cells using current technology is not feasible as it takes 4X more energy to produce the hydrogen as it must be extracted from the source, wind electrolysis is one technology being worked on.

http://www.peakoil.org/ more stories and links you could shake a stick at.

HUBBERT PEAK OIL THEORY http://www.hubbertpeak.com/summary.htm VERY detailed description.

And so the argument grows, as we argue and disagree about global warming and such, it is more likely peak oil is not a fantasy and more likely a reality which will change our world forever.

If oil corrects as most things go, it might make sense to consider , if you do not already have oil in your portfolio, there are ETF'S like XLE or energy and commodity mutual funds, this is a long term core holding IMHO

If you believe in alternative energy, PWB is a clean energy fund investing in all kinds of technology.

Utility companies pay a dividend, short term they might be suspect to decline if the yield on the 10 yr treasury rises above their avg yields now below 5%. COMPOUNDING (a favorite Russell suggestion) will help you avoid mistiming and increase your returns.

As Richard Russell of Dow Theory Letters suggested the last 20 years or so we saw asset inflation of paper assets, it isnt hard to fathom that maybe the next 20 years or so could be part of commodity bull market as they are seen as non renewable and in diminishing supply.

Alternatives like wind and nuclear power will surely be looking more attractive further down the road. Many power plants now use either COAL or natural GAS to convert to electricity, it makes sense to begin planning new nuclear power plants BEFORE we REALLY need them to take some strain off world supplies, maybe why URANIUM appears to be in a bull market!

Duratek

Duratek