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Financially dependant
01-01-2008, 12:19 PM
I am new to share trading but very interested in energy and having been following the energy story for some time. Over the years I have noted how few people understand the concept of energy were it is from and were we are going with it. With permanent oil demand outstripping supply we are entering a period major change, oil based economies to electrical based economies!

Where oil (sweet Arabian crude) has a massive 65% energy return on energy invested (EROEI), hydro has approx 30% EROEI and nuclear & corn based ethanol are close to zero, there are many complications on the path of plentiful energy again (not to mention global warming).

The timing of the transition will have many opportunities for investment, I would be very interested to know your views on this issue which will help me with my investment learning curve?

I posted this link on the peak oil thread which has a good overview of the energy situation (good holiday reading?);

http://www.theoildrum.com/node/3442#more

I have so far invested in NZO and BMN (urainium explorer on ASX) and interested in renewable generation, smart metering etc..

AMR
01-01-2008, 12:22 PM
Very similar to what I am thinking. A good list of junior oilers...

http://www.sharetrader.co.nz/showthread.php?t=5571

Steve
01-01-2008, 12:49 PM
Thanks for the link to your thread...

Financially dependant
01-01-2008, 02:10 PM
Thanks AMR,

Oiler's have a similar energy problem (especially deep water drilling) where cost of extraction (in dollars or joules) v value/grade of resource. Research into size of reserve against difficulty of extraction, if the EIOER is below 30% then it competes against electricity and therefore potentially has a lower financial return.