Best of the Week
Most Popular
1. Will Gold Price Breakout? 3 Things to Watch… - Jordan_Roy_Byrne
2.China Invades Saudi Oil Realm: PetroDollar Kill - Jim_Willie_CB
3.Bitcoin Price Trend Forecast, Paypal FUD Fake Cryptocurrency Warning - Nadeem_Walayat
4.The Stock Market Trend is Your Friend ’til the Very End - Rambus_Chartology
5.This Isn’t Your Grandfather’s (1960s) Inflation Scare - F_F_Wiley
6.GDX Gold Mining Stocks Fundamentals - Zeal_LLC
7.US Housing Real Estate Market and Banking Pressures Are Building - Chris_Vermeulen
8.Return of Stock Market Volatility Amidst Political Chaos and Uncertain Economy - Buildadv
9.Can Bitcoin Price Rally Continue After Paypal Fake FUD Attack? - Nadeem_Walayat
10.Warning Economic Implosion on the Horizon - Chris_Vermeulen
Last 7 days
Sheffield Local Elections 2018 Forecast Results - 22nd Apr 18
How Long Does it take for a 10%+ Stock Market Correction to Make New Highs - 21st Apr 18
Sheffield Ruling Labour Party Could Lose 10 Council Seats at May Local Elections - 21st Apr 18
Crude Oil Price Trend Forecast - Saudi Arabia $80 ARAMCO Stock IPO Target - 21st Apr 18
Gold Price Nearing Bull Market Breakout, Stocks to Follow - 20th Apr 18
What’s Bitcoin Really Worth? - 20th Apr 18
Stock Market May "Let Go" - 20th Apr 18
Overwhelming Evidence Against Near Stock Market Grand Supercycle Top - 20th Apr 18
Crude Oil Price Trend Forecast - Saudi's Want $100 for ARAMCO Stock IPO - 20th Apr 18
The Incredible Silver Trade – What You Need to Know - 20th Apr 18
Is War "Hell" for the Stock Market? - 19th Apr 18
Palladium Bullion Surges 17% In 9 Days On Russian Supply Concerns - 19th Apr 18
Breadth Study Suggests that Stock Market Bottom is Already In - 19th Apr 18
Allegory Regarding Investment Decisions Made On Basis Of Government’s Income Statement, Balance Sheet - 19th Apr 18
Gold – A Unique Repeat of the 2007 and How to Profit - 19th Apr 18
Abbeydale Park Rise Cherry Tree's in Blossom - Sheffield Street Tree Protests - 19th Apr 18
The Stock Market “Turn of the Month Effect” Exists in 11 of 11 Countries - 18th Apr 18
Winter is Coming - Coming Storms Will Bring Out the Best and Worst in Humanity - 18th Apr 18
What Does it Take to Create Living Wage Jobs? - 18th Apr 18
Gold and Silver Buy Signals - 18th Apr 18
WINTER IS COMING - The Ongoing Fourth Turning Crisis Part2 - 18th Apr 18
A Stock Market Rally on Low Volume is NOT Bearish - 17th Apr 18
Three Gold Charts, One Big Gold Stocks Opportunity - 17th Apr 18
Crude Oil Price As Bullish as it Seems? - 17th Apr 18
A Good Time to Buy Facebook? - 17th Apr 18
THE Financial Crisis Acronym of 2008 is Sounding Another Alarm - 16th Apr 18
Bombs, Missiles and War – What to Expect Next from the Stock Market - 16th Apr 18
Global Debt Bubble Hits New All Time High – One Quadrillion Reasons To Buy Gold - 16th Apr 18
Will Bitcoin Ever Recover? - 16th Apr 18
Stock Market Futures Bounce, But Stopped at Trendline - 16th Apr 18
How To Profit As Oil Prices Explode - 16th Apr 18
Junior Mining Stocks are Close to Breaking Downtrend - 16th Apr 18
Look Inside a Caravan at UK Holiday Park for Summer 2018 - Hoseasons Cayton Bay Sea Side - 16th Apr 18
Stock Market More Weakness? How Much? - 15th Apr 18
Time for the Gold Bulls to Show their Mettle - 15th Apr 18
Trading Markets Amid Sound of Wars - 15th Apr 18
Sugar Commodity Buying Levels Analysis - 14th Apr 18
The Oil Trade May Be Coming Alive - 14th Apr 18

Market Oracle FREE Newsletter

Trading Lessons

Is This The End for Crude Oil?

Commodities / Crude Oil Mar 22, 2016 - 07:53 PM GMT

By: Sol_Palha

Commodities

"The end is never as satisfying as the journey. To have achieved everything but to have done so without integrity and excitement is to have achieved nothing." ~ Anonymous


Fossil Fuel versus Clean Energy
Source www.bloomberg.com

The data above indicates that the race between renewable energy and fossil fuels is over; the inflection point was hit back in 2013 when 143 gigawatts of renewable energy were added versus 141 gigawatts that came from traditional power plants that burn fossil fuels. If you look at the chart above, the trend is expected to gain momentum in the years to come. In most cases, the cost of solar energy is on par if not cheaper than grid electricity. This is perhaps why the Saudi's are panicking and want to destroy competition so that they can push prices back up and try to lock in as much money as they can before they knocked out of the game. They are even planning on selling shares in Aramco.

Mohammed bin Salman, the kingdom's deputy crown prince, said he was "enthusiastic" about launching an initial public offering of Saudi Aramco, and a decision would be made "over the next few months".

They must be getting nervous to even consider the idea of selling shares in Aramco; this clearly suggests that they are aware that the world might finally have found a way to wean itself of fossils fuels.

By 2030, the gap between capacity added by fossil fuels and renewable energy will widen to as much as 400%. The trend is in, and it appears that oil will have a hard time trading back to the lofty levels of $140.00. For the next 12 months, oil is not projected to trade past $60 for any prolonged period. Note the cost of batteries continues to drop and at some point; the electric car is going to become a real threat to the fossil fuel industry.

Battery prices fell 35% last year and at this pace, the cost of an electric car should be comparable to the cost of the gas-powered car by 2020. Bloomberg states that by 2040 long range electric cars will cost less than $22,000 in today's dollars.

Projected and Cumulative Sales of Electric Vehicles

By 2040, electric vehicles could account for 35% of all new vehicle sales

Game Plan

You can invest in Battery makers and the makers of electric cars; the most famous of these is TSLA (Tesla Motors). However, we suspect there will be a lot of competition in this field soon, and the price of these vehicles could plummet a lot faster than projected. Regarding TSLA, we would use strong pullbacks to open positions, other car makers such as NSANY (Nissan) and TM (Toyota) merit attention too. In terms of battery manufacturers, NIPNF (NEC Corp) and Panasonic Corp (PCRFY) are two companies you could take a closer look at.

by Sol Palha

www.tacticalinvestor.com

Sol Palha is a market analyst and educator who uses Mass Psychology, Technical Analysis and Esoteric Cycles to keep you on the right side of the market. He and his partners are on the web at www.tacticalinvestor.com.

© 2016 Copyright Sol Palha- All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules