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Inconvenient truths about alternative energy …

Sean Brodrick | February 16, 2012

Sean Brodrick

The year is 1979. And with the Arab oil embargo in full swing, Americans are coming face-to-face with an unpleasant truth — that our country has become dependent on foreign oil.

President Jimmy Carter’s answer to the crisis was to set an example. He called for a comprehensive campaign to conserve energy and famously installed solar panels on the White House.

As he proudly unveiled the new installation, President Carter also announced new plans to finance solar energy … all in an effort to help America become energy independent.

Of course, we all know how that turned out.

And 30 years later, Carter’s dream of solar-fueled energy independence was resurrected by President Obama … only to meet a similar end with companies like Solyndra, the failed solar manufacturer that received $535 million in government support.

Considering these things, it’s no surprise that the average investor is pretty jaded about alternative energy right now.

But as I’m going to explain today, there IS one viable alternative to oil that’s already available to us right now … a source of fuel that is quietly gaining more and more share of the world’s energy market … and ushering in what I believe is truly a "New Fuel Revolution."

This New Fuel Revolution is not a pipe dream. It’s here and it’s happening. And it’s going to create a fundamental shift in the energy markets that could be VERY profitable for investors like us.

In fact, I have been digging up stories of everyday people who are ALREADY cashing in on this New Fuel Revolution. More on that in a minute, though.

Advertisement

First …

Why Solar, Wind and Other
Alternative-Energy Sources
Just Aren’t Ready Yet

Before I go on, I’d like to let you know that I DO believe renewable energy is still a great idea for the future.

Unfortunately, it’s just not ready to solve the world’s energy problem TODAY.

Why? It’s all in the details …

Take wind farms, for example.

I’ve read stories of wind farms that could sell you electricity for as little as 1 cent per kilowatt-hour.

But there’s just one problem: These wind farms are way off the grid … so there’s no way to get this power to consumers.

Meanwhile, solar is something you can install on the roof of your home.

But without government subsidies, the cost savings aren’t there yet. Solar panels are still relatively inefficient, so you’ll only save a fraction of your energy bill in the end.

Oh, and then there are also hydrogen fuel cells. Remember how all of our cars were supposed to run on them by now?

That "energy solution" has never translated to the real world because hydrogen-fueled cars are way too expensive, and hydrogen fuel is too explosive.

Even electric cars still have drawbacks!

Take the Chevy Volt. Its promise is tantalizing … but it hasn’t lived up to that promise in real life.

Fox News host Eric Bolling recently tried out a Chevy Volt for a week. After two nights of charging the Volt at his home for 12 hours, he was on his 20-mile commute to work when the Volt ran out of juice in the Lincoln Tunnel!

There ARE other electric cars that work much better, such as the Nissan Leaf. But the source of that electricity still isn’t really coming from clean sources like solar or wind power, anyway … at least, not right now.

So yes, each of these energy alternatives has its own advantages and disadvantages, and I do believe they’ll continue to gain some traction in the next few decades.

But the World’s Energy Problems
Can’t Wait Years, Let Alone Decades!

As I’ve explained over the last few days, we’ve already reached the point at which annual crude oil production has peaked.

And a skyrocketing global population — along with a massive worldwide increase in living standards — is creating an even-stronger demand for not just oil, but ALL types of energy.

Unfortunately, none of that is going to improve or reverse … it’s only likely to get much worse.

Meanwhile … while a lot of buzz has been revolving around hybrid cars, and solar and wind power … a quiet — and very REAL — New Fuel Revolution is already happening right under our noses!

[Editor's note: Sean's presentation — "How the New Fuel Revolution Can Make You Rich" — is going online TODAY at noon Eastern time. It's free and no registration is necessary. Simply click here shortly before noon Eastern!]

Again, I’m not tilting at windmills … or other forms of green energy like solar or geothermal. This New Fuel Revolution is not about those alternatives, but instead something that’s already been around for a long time.

And it’s being used all over the world.

What’s recently changed is the TECHNOLOGY involved with this type of fuel … as well as new TECHNIQUES that are allowing us to get at it more efficiently … transport it more economically … and harness its power in more useful ways.

In addition to the simple supply-and-demand factors, THOSE are really the two driving forces behind this New Fuel Revolution.

And for investors, the most important part is that, with these innovative new techniques and technologies … and with all the evidence of greater and greater adoption of this alternative fuel source around the world … comes absolutely huge profit potential.

Based on everything I’ve uncovered, I think this story is going to explode into the mainstream this year.

Which is why I’ve been working so hard to break the story first … and why I’m preparing a brand-new presentation that GOES LIVE TODAY AT NOON Eastern Time.

In this free webinar, called "How the New Fuel Revolution Can Make You Rich," I’m going to tell you:

  • What source of fuel I believe is going to revolutionize the energy landscape — not someday but NOW …
  • How everyday Americans are already making huge fortunes from this revolution … and why even-bigger profits lie ahead for investors like us …
  • And most importantly, details on the specific companies that I believe will rocket higher as this New Fuel Revolution continues taking the world by storm!

Viewing this presentation won’t cost you a penny, and there’s no registration required. All you have to do is click this link at noon today to be among the first to see my brand-new presentation, "How the New Fuel Revolution Can Make You Rich."

Again, I realize that it’s easy to be jaded about alternative energy.

After our experience with the solar "solutions" of the past, it’s easy to assume that things won’t ever change.

But I have plenty of evidence that proves this revolution IS already taking place.

And the fact that most other investors have yet to recognize it is exactly what gives the New Fuel Revolution so much potential!

So if you’re willing to go against the herd … if you’re curious about the global transformation in energy — and how you can cash in on this New Fuel Revolution — make sure you watch my presentation as soon as it goes live later today!

Yours for trading profits,

Sean

Sean Brodrick is a natural resources expert and editor of Global Resource Hunter, a monthly newsletter designed to help you ride the commodity supercycle – an ongoing surge in price of food, energy, metals and more.

Sean is also the editor of Junior Resource Millionaire, a weekly service that aims to help you rack up profits on trades with explosive potential in the precious metals, base metals, agriculture and energy industries.

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{ 14 comments… read them below or add one }

Frances Friday, February 17, 2012 at 11:10 am

Will someone please tell Sean that natural gas is not alternative energy…tell him to quit stealing the name brand…alt energy is wind, solar, algae, geo-thermal…

No pun intended but geo-thermal is hot!!…just ask folks at the newberrry rs in Oregon….biggest volcano ot West…

Natural gas??..phooey….he needs to take some coursework in biochemistry and take some geology courses……

Reply

Ray Saturday, February 18, 2012 at 1:55 pm

Yes, but how do you invest in AltaRock or Davenport Power, LLC? Can’t buy it in my trading account. Any ticker symbols of geothermal companies operating in Newberry Oregon you want to share with us, Vic?

Reply

Vic Friday, February 17, 2012 at 12:39 pm

Alos…there really isn’t that much natural gas out there for the energy demands he speaks of…Look Sean is not a geologist…

There’s more geo-thermal energy availalbe than natural gas…by FAR….and the close cycle systems for geo-thermal are so much more effecient and cheaper….

Natural gas ain’t the answer….smoke and mirrors to sell you more option plays cloak as an investment……

Reply

jay Lindberg Saturday, February 18, 2012 at 1:02 pm

I really don’t think you know what you are talking about as far as solar goes.

There are 20 year residential prepaid solar leases out there that cost less than two dollars a watt.

Let me explain how that works.

A 10 KW solar system that would cost you 8 dollars a watt, that’s $80,000 three years ago, now costs less than $20,000 with the20 year prepaid lease.

Over the twenty years of the Prepaid lease (which means no lease payments for 20 years) your utility savings is estimated at $100,000. That figure is based on a 4.5% increase in utility rates per year.

Give me a call or shoot me an email if you are interested.

Reply

Milt Saturday, February 18, 2012 at 6:53 pm

As a subscriber to “Safe Money” and Larry Edelson’s “Real Wealth”, I’m EXTREMELY disappointed with Sean Brodrick’s Webinar titled “How The New Fuel Revolution Can Make You Rich”. After a week-long build-up, the result was dismal.

Not only did I waste valuable time because of the Webinar, but I didn’t get to listen to Larry’s “Uncommon Wisdom” message this Monday, because Weiss, Inc. stopped all of the “Uncommon Wisdom” presentations to promote Thursday’s disappointment.

Until a few months ago, Larry Edelson had two (2) messages each week – one video and one written message; now, it’s down to one message per week that alternates every-other-week & I now have to go two weeks without any message from Larry (at all) because Weiss, Inc. was promoting this nonsense for “only” $795 per year.

The biggest disappointment was Brodrick’s ending, when he gave the viewers/listeners the lauded “tip” or “jewel” or “reward” — NYSE: UNG (U.S. Natural Gas), an ETF. This was supposed to be our reward; if it was a joke, it wasn’t funny.

UNG (U.S. Natural Gas) is not like other funds that own shares in Natural Gas producers; UNG has exposure to natural gas prices through futures contracts. Over the last 5-years, UNG has lost more than 95% of it’s value. The only reason that their stock is over $5.00 per share is that they’ve had reverse splits (e.g., 1-for-2 or 1-for-4, etc.).

Yes, Natural Gas prices have declined from the $7 to $8 range to around $2.50 to $3.00, a decline of some 65%. However, UNG has lost more than 95% of its value. Even if natural gas prices should rise 50% over the next year, UNG could still lose value because they’re trading in and out of monthly futures contracts. If UNG is the “jewel” that is our reward, don’t give me any more rewards.

Reply

Milt Saturday, February 18, 2012 at 7:06 pm

The biggest disappointment was Brodrick’s ending, when he gave the viewers/listeners the “tip” or “reward” — NYSE: UNG (U.S. Natural Gas), an ETF. This was supposed to be our reward.

UNG (U.S. Natural Gas) is not like other funds that own shares in Natural Gas producers; UNG has exposure to Natural Gas “prices” through futures contracts. Over the last 5-years, UNG has lost more than 95% of it’s value. The only reason that their stock is over $5.00 per share is that they’ve had reverse splits (e.g., 1-for-2 or 1-for-4, etc.).

Yes, Natural Gas prices have declined from the $7 to $8 range to around $2.50 to $3.00, a decline of some 65%. However, UNG has lost more than 95% of its value. Even if natural gas prices should rise 50% over the next year, UNG could still lose value because they’re trading in and out of monthly futures contracts. If UNG is a reward, don’t give me any more rewards.

Reply

CHUCK ADKINS Sunday, February 19, 2012 at 8:54 pm

I’M RETIRED FROM AN ELECTRIC UTILTY CO. WE TESTED SOLAR, WIND, AND GEOTHERMAL. IN ADDITION TO SUPPLYING COAL FIRED ELECTRIC GENERATION TO OUR CUSTOMERS, WE ALSO SUPPLIED NATURAL GAS TO HEAT HOMES. WE CAN FIRMLY SUPPLY FACTS ABOUT WHAT THE TRUE COSTS OF EACH OF THESE TYPES OF ENERGY COSTS ARE TO THE INDIVIDUAL CUSTOMER. WHEN ANYONE TELLS YOU HOW INEXPENSIVE A WATT OF ELECTRICTY IS; AND TELLS YOU IT CAN BE $8.00 PER WATT ! YOU HAVE TO BE KIDDING ! THAT IS NOT ONLY NO BARGAIN, IT IS IDIOTIC TO EVEN CONTEMPLATE ONE WATT OF POWER AS BEING A UNIT OF ELECTRIC POWER TO MEASURE FOR OUR USE. ELECTRIC METERS ARE SET IN INCREMENTS OF ONE KILOWATT HOURS, OR ONE THOUSAND-WATT HOUR UNITS. EVERY APPLIANCE WE USE TODAY, TAKES SO MANY WATTS TO FUNCTION, BUT IT WOULD BE INHIBITIVE TO PAY EACH WATT IN DOLLARS, SINCE YOU CAN PURCHASE ELECTRIC POWER IN PENNIES PER KILOWATT HOURS. AN EXAMPLE: IF YOU PAY 12 CENTS PER KILOWATT ON AVERAGE FOR YOUR USEAGE PER MONTH AND USE 1000 KILOWATTS OF POWER, YOUR BILL SHOULD BE: 12 CENTS X 1000 = $ 120.00. WHAT REALLY TAKES PLACE TODAY THOUGH ARE THE EXTRA CHARGES TACKED ON TO YOUR BILL BY THE VARIOUS CHARGES BY THE LOCAL, STATE AND FEDERAL GOVERNMENTS; IN ADDITION TO OTHER HIDDEN CHARGES. BUT CAN YOU IMAGINE PAYING $ 8.00 A WATT X A 1000 WATTS ( ONE KILOWATT ) X 1000 = $ 8,000,000. WHO IS KIDDING US ? CHUCK

Reply

zeron Monday, February 20, 2012 at 8:14 am

please how much build up and BS is needed…. natural gas… we get it okay…!!!
And by the way foreign countries won’t pay more then we do, it is a spot market ! Highest bidder – country is not related outside of transport and duty…

Reply

Achal Mehta Monday, February 20, 2012 at 2:30 pm

The U.S. Energy Information Administration has estimated that China has about 36 trillion cubic meters (1,300 trillion cubic feet) of recoverable shale gas, the biggest known reserves. The U.S. has about 23.4 trillion cubic meters (827 trillion cubic feet) …source – boston.com

If the above is true, then China would soon have its own gas. In that scenario, I do not see any uptake in US shale gas exports and explosion of gas prices. In that event the gas price would probably remain depressed and as NG would just serve more or less our domestic consumption. So I do not foresee a great export potential for NG, however if the NG act is passed and the transportation industry takes up NG in a big way then we could see some momentum in these stocks. In my view the thrust to NG largely depends on the energy policy the government adopts and how it views and deals with the environmental issue related to shale gas exploration. We also have to consider that there is enormous shale oil that is being explored and could hit the market by mid year. So with continuously increasing quantity of shale oil hitting the mix, the potential of shale gas as a game changer is not to clear at the moment.

Reply

Vic Monday, February 20, 2012 at 6:43 pm

Like I told ya Sean….in an earlier commnet edited by your censors…you have been rolled out and set up by Martin….just like Claus…like the mr Magoo of Cycles…Brian rich…etc..

You’ve been pushed to the front to help a flagging business model…and your reputation is going to be taken down..and Mr Virus is going to consume you too..

Come on…after all the “extensive research” you bray you have done…the best you can do is an ETF that is about as maniulated of an ETF as there can be???…UNG??..that’s been a trader’s whipping by for quite some time…

“Investing” sure doesn’t mean what it used to..

I’m just gonna kick back and read the posts about this one….yer gonna get fried……

Reply

Vic Tuesday, February 21, 2012 at 12:52 pm

can’t help myself….got myself all in a contango…

You’re horror flick is just starting for natural gas…..

http://seekingalpha.com/article/374391-contango-in-futures-based-commodity-etfs-a-real-profit-killer?source=yahoo

Reply

Vic Tuesday, February 21, 2012 at 12:55 pm

Good luck with timing….you guys are gonna get burned..

snippet below from article in above link…yeah, baby short term trading is the new “investing”..is this the strategy you sold all thos retirees on in Florida???…Nice..

Conclusion

It makes no sense to take long term positions in crude or natural gas through USO or UNG. This conclusion also applies to other ETFs that try to mimic the underlying commodity’s price behavior through the trading of futures. Some ETFs try to mitigate the problem by spreading the investment over many maturities, though this doesn’t eliminate the problem entirely.

In short, it’s a bad idea to invest in commodities that are in contango through ETFs that use futures to replicate the underlying commodity’s movements.

Reply

Vic Thursday, February 23, 2012 at 10:22 pm

Your reputation nightmare is well under way as I predicted….yer gettinghammered over on MArty’s blogs….Seems you didn’t do enough research before your Volt story…..reading headlines again??..

Thanks for the big UNG tip….looks like UNG just had a 4:1 reverse split…REVERSE……you crack me up, little buddy

keep up the good work…

Reply

Vic Tuesday, February 28, 2012 at 10:14 pm

Tell me all about UNG agin Sean??..please..tell me..make me feel good??..

Now??..people have less shares after the 4:1 split..AND…those shares are worth less than pre-split!!!!…

Man..your picks should be called “Red Queen” picks…cause your subscribers are just running in place not going anywhere…cept backwards..

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