If you like investing in American companies, and tend to focus on energy stocks, its important to understand what is REALLY going on out there in the energy world. There are many different points of view and opinions when its comes to the energy sector, but what is fact and fiction? John Reeves has 5 myths developed from an interview with Daniel Yergin, energy expert.
Myth No. 1: The world is about to run out of oil.
Yergin believes that this isn’t exactly true. In his book, he discusses evidence from studies of oil fields and oil wells that show that “the world is clearly not running out of oil.” In fact the “estimates for the world’s total stock of oil keep growing.”Myth No. 2: We import all of our oil from the Middle East.
In the interview, Yergin said that a lot of folks that he talks to think that we import all of our oil from the Middle East. Actually, that number is a “pretty small share nowadays.” Yergin finds it interesting how much people talk about ending our dependence on Middle East oil when in fact, we “don’t have much dependence on it.”Myth No. 3: Conservation isn’t a meaningful part of our energy strategy.
When I think of conservation, I think of hairy people and Earth Day. That’s a big mistake, according to Yergin, who believes that conservation has the potential to have the most positive impact of all on our overall energy policy.Myth No. 4: Electric cars will have a huge impact on our auto fleet over the next 10-20 years.
Yergin isn’t entirely sure that the electric car will gain traction, and feels that the next five years will be critical. When asked whether he’d “buy”, “sell”, or “hold” the electric car, he chose to “hold” it.Myth No. 5: Wind and solar are clearly the key to our future energy needs.
Wind and solar, according to Yergin, are still pretty small compared with the overall power business, and still need “to demonstrate that they can provide large-scale electricity competitively.”
Take this article as you will. Whether you believe these to be myths or not, they are topics worth considering if you plan to tackle the energy market place.
Quotes taken from report by John Reeves, Read the entire article here.
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