Climate Change
April 11, 2011
Market Vectors KOL ETF provides a good well diversified way to invest in Coal which is seeing a massive upsurge in demand driven by India and China.For investors looking for individual stocks here is a list of US Solar Companies and Stocks and Indian Coal Stocks.China with around 3 Billion Tons of Coal Consumption and India with another 500 million Tons depend on King Coal for majority of their Energy Needs.While China generates 80% of its Electricity from Coal,India generates around 65%.While both countries have Huge Reserves and Production of Coal,their voracious demand is leading to surging imports.These Imports are being sourced from countries like Australia,Canada and USA which are going through Coal Mining Booms.Ports are getting congested as Infrastructure failed to meet the growing coal needs of India and China..The Biggest Advantages of Coal its Abundance and Cheapness of Coal has made it the Fossil Fuel of Choice for Electricity Companies building power plants in developing countries despite its Drawbacks.This has led to a fight to secure Coal Supplies through vertical integration into buying up of coal mines,building ports and railways to transport Coal.Though India too faces some environmental opposition,massive ultra mega power plants with capacity of 4000 MW are getting built by new Indian private utilities.
April 11, 2011
Coal is the biggest source of Energy for Electricity Production in the world and its use is expected to continue to grow to 44% of the Electricity Production by 2030 (IEA).Despite Coal having many dangerous disadvantages,its Advantages of cheapness and abundance have made it the Fossil Fuel of choice.With global reserves estimated to be around 200 years,it does not have the "peak oil" characteristics as well.Though not a Coal Fan,nonetheless Coal stocks are a great investment choice due to the fact of its growing demand which is outstripping supply.China and India are massively growing their electricity,steel and cement production which requires billions of tons of coal.China consumers almost 45% of the global coal production while Indian demand is growing by leaps and demands as well.Indian Power Utilities are grabbing up Coal Mines in Africa,Australia and Asia to secure feedstock for their gigawatt thermal power plants.Despite its growing importance Coal does not have a lot of choice in terms of investment unlike Fossil Fuels like Oil and Gas.Here is a list of Coal Stocks which one can invest in and the sole Coal ETF - Market Vectors Coal ETF (KOL).
April 11, 2011
Coal is one of the most important sources of energy for mankind providing an easy way to generate energy in a cheap manner.The relative abundance and low costs of using Coal has made it the the first choice of Fuel for building Power Plants in the world.Coal has huge importance as an Energy source and forms the most important raw material for Cement and Steel.Coal is also used in a variety of other industries like Paper,Aluminium,Chemical,Transportation and Pharma.However Coal also has huge negative consequences as it is the largest source of Carbon Emissions which happen during Coal Combustion.Coal Mining despite two hundred years remain as hazardous as ever resulting in thousands of deaths in India and China.Mercury,Arsenic and pollution of other harmful substances into the environment causes diseases and many deaths as well.However for countries like India and China there are little other alternatives and there is no conviction amongst policymakers to change their energy strategies as well.So the advantages of Coal are currently overpowering those of the Cons of Coal.This despite Coal being the dirtiest form of Energy and causing many deaths globally.The main reason for the cheapness of Coal is that the societal costs are not added on explicitly to the Price of Coal making it seem artificially cheap.
April 10, 2011
Coal is a dominant source of energy for humans accounting for almost for a quarter percentage of human energy consumption and majority of the global electricity production.However Coal is considered as the Dirtiest form of Energy as it leads to Air Pollution,Mercury Poisoning,Global Warming.Renewable Energy is considered as the solution with its non-polluting characteristics,energy security,freedom from peak everything.However Renewable Energy is way more expensive than Coal Energy making it difficult for Renewable Energy to take over Coal.However growing Global Warming Costs will weigh in the future making it inevitable that Green Energy catches up.Here is a list of the pros and cons of Green vs Black where Green represents Renewable Energy and Black represents Coal.Note Green Energy will ultimately win in the end,its only a question of how soon because if the realization comes too late then Climate Change might go far enough to cause catastrophic damage.
April 9, 2011
Toy Rentals are Companies that work on the concept of Libraries where Books are substituted by Toys,Children Books,Children Puzzles etc.Toy Rentals are a relatively new concept and have gained traction in different countries first though they are far from mass scale such as Car Rental Companies.The concept of Toy Rental Service or Toy Libraries is fast catching on in developing countries like India as well where the obvious value add to both companies and buyers make it a sharply growing industry.
Toy Rentals are a Green Concept as they help in reducing Waste,Promotes Sharing and Reduces your Carbon Footprint.It not only is Green but also has the following advantages
1) Reduces Cost of Ownership of Toys,Books,etc
2) Allows a Child to Play with new and unique toy not possible in a single ownership model
3) Reduces the Space Requirements in your House which also helps the Environment
April 9, 2011
Coal is the Biggest Contributor to Global Warming generating billions of tons of carbon dioxide during combustion.Coal is one of the most abundant fossil fuels available on earth and it is expected that Coal will last another 200 years.The mass usage of Coal and its deleterious effect on the environment makes Coal a controversial choice of Energy.Coal is responsible for 25% of Human Energy Consumption and is the largest producer of Electricity in the world.
Coal causes Human Deaths in the Thousands each year directly through Mining Deaths and Indirectly through Human Diseases like Lung Cancer,Mercury and Arsenic Poisoning.The costs of Coal are artificially low because these costs are passed onto society and not explicity added onto the cost of coal powered electricity or coal products like Steel and Cement.Reducing Coal Usage gradually is a big necessity but given the growing hunger for energy by India and China and lack of a Climate Agreement that looks unlikely in the near future
April 9, 2011
Coal is one of the cheapest and most important sources of energy, responsible for 41% of electricity productionworldwide. In many important countries like India,China,Germany,USA,Coal is the primary source of electricity and energy.Other smaller countries also heavily rely on coal for example Poland 94% , South Africa 92%, China for 77% and Australia for 76%.Coal has played this a pivotal role in the development of mankind and his progress into the Industrial Age.Coal is an essential raw material and fuel for important global industries like Cement and Steel.Different qualities of Coal are used for different purposes.For example coking coal with higher carbon percentage is used in Steel Production while Thermal Coal is used in Production of Electricity.It was during the Industrial Revolution in the 18th and 19th centuries that demand for coal surged. Coal is responsible for almost a quarter of the global energy production,41% of the Electricity Production and more than 60% for Steel Making.Here is a list of the Major Uses of Coal
April 9, 2011
Coal is one of the most abundant fossil fuels available on earth and is a major supplier of energy.Coal is the largest producer of electricity in the world accounting for more than 40% of the global electricity production.This is expected to rise to 44% according to IEA.In the last decade global coal consumption has grown faster than any other fuel.Coal has many other important uses as well such as steel production, cement manufacturing 6 billon tonnes of hard coal and 909 million tonnes of brown coal were used with China accounting for almost 45% of the global coal consumption.Coal is also one of the largest sources of Carbon Dioxide Emissions as well responsible for double the GHG emissions from Oil.Coal is regarded as the dirtiest form of Energy due to high Carbon Emissions,Pollution,Hazardous Substances such as Mercury,Deaths due to Coal Mining etc.However the cheapness of coal,its established industrial base and abundance makes Coal indispensable in the Short Term just like Nuclear Energy.Here are the main Advantages of Coal
April 8, 2011
USA has been one of the worst countries in the world in regards to climate change and global warming issues.While countries have pledged to cut down […]
April 6, 2011
Islands mostly are depended on diesel generators for their electricity requirements which is considerably costlier than the normal coal,hydro,gas and nuclear forms of energy.Unless you are Saudi Arabia and can get oil at $4/barrel,the price of electricity from oil based energy sources is one of the costliest.Hawaii in USA pays around 30c/KwH for electricity because of the high cost of transporting and buying fossil fuels for its power plants.These islands have a huge incentive in moving towards renewable energy because it not only reduces costs,carbon emissions but also helps in energy security.Hawaii has installed a large number of wind farms,is building a big energy storage facility and promoting other alternative energy forms like solar as well.Hawaii Feed in Tariff has been implemented despite opposition by the utilities.
April 6, 2011
USA has been sorely lacking in the fight against Climate Change and Global Warming.Greenhouse Gas Emissions by the US has increased tremendously from 1990 the benchmark year when countries under Kyoto Protocol pledged to reduced their Carbon Emissions.However US has refused to do anything and has not even signed the Kyoto Protocol.The hopelessly rudderless leadership in the US has failed to pass any Clean Energy Laws like Cap and Trade ( not my favorite),Federal RPS etc.Some states have been showing proactive leadership like California despite massive opposition by the powerful oil and gas lobby (Valero,Koch Brothers).Their efforts are being stymied by the very rich who don't care about global warming as they can easily use their money to mitigate any affect on them and the powerful fossil fuel lobby with their thinktank puppets.
April 5, 2011
Note none of the Indian automakers has a decent EV or a Hybrid selling in the Indian market.Foreign markets on the other had are seeing fierce competition amongst major auto makers to gain a first mover advantage.GM,Nissan,Toyota are the leader in this market with other car makers also in the process of getting in.Hectic alliances and JVs are being forged as this market segment promises to be the fastest growing as the governments give massive subsidies and push.It remains to be seen whether the government in India can push given its record.
April 4, 2011
Increasing Oil Prices is the biggest Achilles Heel of the Indian Economy heavily dependent on imported oil products.The government will have to either raise the prices leading to adding fire to the already high inflation or compensate the badly bleeding half privatized Oil Companies like IOC,BPCL and HPCL.These companies generally make massive losses despite having private investors apart from the government.Compensating these losses would lead to a higher fiscal deficit which would add to the inflation pressures anyway.Note a recent survey revealed that the Indian Middle Class has cut its expenditure on shopping,eating out and entertainment by a whopping 65% due to the high inflation.However the Indian Stock Market has seemingly discounted all these factors going up by 10% in 10 days on the back of a global rally.Bernanke Fueled Cheap Money is Circulating Hungrily across the Globe and currently India seems to be the fashion trend of the month.Note these hot money flows can reverse equally quickly leading to a sharp market crash just like the Jan-Feb one as fundamentals hardly support this kind of rally.With government intervention and distortions becoming the overriding factor in the stock markets,Free Markets and Fundamentals have taken a backseat.
April 4, 2011
Climate Change and Global Warming have been put in the Cold Storage by most world governments as there is little will to fight one of the most pressing challenges facing mankind.With the successive Copenhagen and Cancun Climate Change Meets coming up as croppers,the Poor are left to fight the drastic affects of Climate Change in the face of Severe Weather like Droughts,Floods,Increase Sea Levels.Australia stupidly cut the funding for various Green Programs after facing one of the worst floods in the last century.It did not occur to the short term focused politicians that the Floods may have their root cause in Global Warming.Instead of increasing resources to fight Climate Change,they cut the Funding to help in the Flood Rehabilitation Programs
April 2, 2011
The strict environmental regulations of EPA is leading to converion of a Virgina Coal Plant to a Biomass Fired one.Note the US Congress and Senate have failed to move ahead on climate legislation remaining hopelessly deadlocked on any climate deal.Despite numerous draft laws,no common law has been passed as Republicans fail completely in understanding global warming remaining in the pockets of the powerful oil and gas lobby.EPA remains the only government body which is doing something to reduce pollution and at the same time fight for climate change.The strict new rules against emission of harmful gases like sulfur dioxide,nitrous oxide,mercury has forced a Virginia Coal Plant to convert from thermal to biomass.
March 31, 2011
Hydroelectricity is one of the largest sources of energy accounting for roughly 20% of the worldwide demand of electricity with around 800 GW of capacity installed.There is considerable potential still left and developing countries like India and China can be expected to install another 500 GW over the coming years.Hydroelectricity is very important as it does not lead to GHG emissions and contribute to global warming.It also does not have the drawbacks like other renewable energy forms of high costs and intermittency.The advantages of hydroelectricity are substantial enough to far outweigh any disadvantages.But like nuclear energy,hydro power has some tail risks which can lead to catastrophic damage.The costs of hydroelectricity are not a simple function of dollar costs.It should also take into account the massive displacement costs in case of massive hydro dams,the loss of ecology and potential tails risks which can lead to massive payments.
March 31, 2011
Obama's outlined a New Energy Policy as he periodically does without any far reaching national goals on to reduce America's dependence on billions of barrels of imported oil which cause global warming,finance terrorist and prop up brutal regimes in the Middle East.However his periodic bursts of rhetoric on the US Energy Policy is nothing but a lot of empty gas without any specifics.Earlier he used to stress on nuclear energy which has been thrown out of the window with the Fukushima nuclear disaster.His plans of supporting the nuclear energy industry with $36 billion in DOE loans seems a bad if not a gruesome joke.Similarly last year his plans of allowing offshore drilling for Oil also fell flat after the massive BP Oil Spill ecological disaster.
March 29, 2011
Hydroelectric Dams have disadvantages which are quite different from those of other forms of renewable energy like solar, wind, geothermal or nuclear energy. Hydro Power in […]
March 29, 2011
The world's total electricity generating capacity is around 4500 GW (2007 figures) which is expected to increase by 1.7% each year to rise to 7000 GW by 2035 according to EIA.USA is still the world's largest electricity producing country with more than 20% of the world's power capacity with around 1 Terawatts of Electricity Capacity.China has been rapidly adding capacity in the last decade and the second biggest electricity producing country with more than 700 GW more than 70% of which is from coal fired power plants.Japan,Russia and India are No.3,4 and 5 on the list with 280 Gw,220 GW and 159GW respectively.Europe is the third largest region in terms of electricity capacity with more than 800 GW.India is rapidly increasing capacity and is projected to be the No.3 in the list by 2020 as it looks to more almost treble its current electricity capacity of around 150 GW (in 2007).
March 28, 2011
British Petroleum (BP) the multi billion dollar Oil and Gas Conglomerate is a strange player in the Renewable Energy Sector of Solar Energy.BP was a dominant company amongst the top 10 global manufacturers of solar panels till a few years ago.However the lack of interest on the part of management,low investment,lack of R&D has made it a bit player in the fast growing solar panel market.Companies which did not exist till a few years ago have outpaced BP to become top solar panel producers.However BP Solar Panels continue to sell in a number of market because of existing sales relationships and brand name.However it is only uneducated and uninformed consumers who are buying BP Solar Panels in my opinion.BP Solar Panels should be avoided both from an economic point of view and from the environment perspective.
March 19, 2011
Coal Mines in Indonesia,Australia,Africa and North America are selling like hot cakes as Indian,Chinese companies as well as mining conglomerates like Rio Tinto,Vale,BHP Billiton fight to secure raw materials.Note India and China are consuming huge amounts of coal to power their thermal plants.While China consumes a monstrous 3 billion tons,Indian demand is rising at more than 10% a year though on a smaller base.Coal is the cheapest form of power despite its polluting and health hazardous affect.Though Coal Plants in Developed countries are becoming much more expensive to build due to taxes and opposition by environmental groups,there is no stopping their furious growth in countries like China and India.Though India too faces some environmental opposition,massive ultra mega power plants with capacity of 4000 MW are getting built by new Indian private utilities
March 19, 2011
The United Nations has voted on enforcing a "No Fly Zone" in Libya as Colonel Gadhaffi's forces backed by aircraft and artillery have bombed their way to a winning position in Libya.The democratic protests in Libya has been violently suppressed by the despotic regime over there which has appeared at times as mad and lunatic.The rebels despite popular support have been cowed down by the massive military power of Gadhaffi and his mercenaries.This has finally made the United Nations Security Council decide on attacking Libyan army by Air and enforcing a "No Fly Zone'.Note this has been done despite misgivings by China and others who abstained.However the West led by France has been adamant on helping democracy.
March 16, 2011
Geothermal Energy is regarded as a poor cousin to its more glamorous cousins Wind and Solar.Geothermal Energy Capacity has been installed and the growth rate is a pathetic 3-4% compared to the over 50% CAGR seen for solar energy and around 30% for Wind Energy.However Geothermal Energy possesses one attribute that the others do not.Its 24 hour generation capability is a massive plus compared to the intermittent nature of Wind and Solar Energy.However long project development time and large capital investments have deterred fast growth in geothermal energy in the world.However some countries like Iceland,Indonesia,Philippines and USA have a strong geothermal energy industry.Note Geothermal Energy has massive use as a heating source for homes and offices,however this article mainly talks from the view of Electricity Generation.
March 16, 2011
The situation at the Fukushima Dai-Ichi power plant continued to be desperate as new fires and explosions rocked the nuclear plant.The utility which owns and operates the Nuclear Reactors Tepco said that the containment structure may have been damaged as smoke was seen from top of one of the reactors.70% of the Fuel Rods at Nuclear Reactor 1 and 33% at Reactor 2 have been exposed.This means that these fuel rods are not being cooled and may be melting leading to increased radiation poisoning hazards.New Fire broke out on the morning of 16th March at Reactor No.4 and containment chamber at Reactor 2 is damaged from Reactor 2.The problems at the Nuclear Plant seems to be increasing with no solution in sight.What is worse is that the 2 reactors No.5 and 6 which have been dormant all this time have all seen their temperature .increasing.Temperatures in the spent fuel rod cooling pools of the shuttered No. 5 and No. 6 reactors were rising as of 7 a.m. today to about 60 degrees Celsius (140 degrees Fahrenheit)
March 15, 2011
This Nuclear Energy Disaster in the Age of Twitter and Facebook will vehemently increase the opposition to the setting up of big Nuclear Plants.The Radiation Leak and subsequent health hazards will make it impossible for a Nuclear Reactor to be located except in very remote areas like the Sahara Desert.NIMBY protests are going to almost kill the Nuclear Industry in the next decade at least in democracies.The Nuclear Industry will take a long time in establishing its trust amongst the citizens.Without Nuclear Energy,the other major forms of Renewable Energy ,Solar and Wind Energy have to gain.Already Switzerland and Germany are deferring the planning and extension of Nuclear Energy.Other countries are putting safety reviews.Note the costs of environment regulation and nuclear waste disposal are already quite high.This will make new nuclear plants uneconomical as they are already facing huge cost overruns . Ask Areva in Finland and Constellation in the US.
March 14, 2011
The Japanese Nuclear Plant Explosions would have sent shivers down the throats of everyone living near Nuclear Plants.Note Japanese Nuclear Plants are thought to be one […]