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Advances in Technology will make conventional energy generation cleaner and more efficient.
Traditional fuel sources will still be necessary to satisfy future demand.
A Paradigm shift is occurring, but it will be an evolutionary process converting the planet to renewable resources. This “Bridge” period presents many opportunities for Traditional Energy.
As a result of falling commodity prices, oil infrastructure investments have been delayed, most likely leading to a supply crunch with a resulting cost of much higher oil prices than we have ever seen.
The IEA projects spending of $26 trillion by 2030, or over $1 trillion per year, to build, maintain and replace energy infrastructure in order to meet the projected production – of which the reserves will still be declining.
Emerging cleaner technologies applied into traditional energy has the potential for improved efficiencies, increased production and distribution, and improved products and processes all at a reduced footprint.
The gradual acceptance of global cap and trade systems and legislated carbon mitigation policies creates opportunity matrices similar to the early days of hedge funds.
Worldwide asset price reductions caused by the media accelerated fear and contraction has brought price / earnings multiples back into ranges last seen in the 1970’s.
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