What is your bet: nuclear power, natural gas or renewable energy?
The thing is established business, in this case gen sets, nuclear have huge funds to lobby and convince regulators on what the public and private sector should go for. In this case, the people in high places support both nuclear and NG.
In Japan, public opinion and outrage over the Fukushima meltdown fueled the sudden growth of solar power.
What do you support.?
Even if natural gas is plentiful, as in US now, would you endorse this clean fuel?
---------- Forwarded message ----------
From: Energy and Capital <eac-eletter@angelnexus.com>
Date: Tue, May 21, 2013 at 1:17 AM
Subject: THIS Obama Insider is Investing in Natural Gas
From: Energy and Capital <eac-eletter@angelnexus.com>
Date: Tue, May 21, 2013 at 1:17 AM
Subject: THIS Obama Insider is Investing in Natural Gas
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THIS Obama Insider is Investing in Natural Gas
By Jeff Siegel | Monday, May 20th, 2013
There's no doubt about it...
It's extremely rare these days to find members of Congress approving much of anything coming out of the Obama administration — at least, not without the obligatory dog and pony debates and strategically planned series of huffs and puffs from media whores and partisan slaves.
But this time around, it didn't take too long (relatively speaking) for Ernest Moniz to become the next Secretary of Energy.
In a 97 to 0 vote, Moniz seems to be receiving an uncommon welcome in a Washington den of thieves and liars. Sure, there's been the expected tantrums and intern-constructed press releases. But for the most part, Moniz has been given a clean bill of health by the Washington establishment.
So as investors, we would be wise to get a handle on where this guy's loyalties lie, whom he calls his closest friends in Congress, and of course, his ultimate agenda.
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Loyalty Ain't Cheap!
In Washington, loyalties lie with those who pony up during election time. And if you review the check register of Ernest Moniz, you will find the following names:
Moniz also ponied up nearly $5,000 for President Obama in 2008 and 2012.
There's no doubt that these folks pushed hard to bring Moniz into the fold. And I suspect these will also be the new Energy Secretary's closest allies when it comes to developing and instituting energy policy.
So the question is, what exactly will that policy be?
Moniz Loves Natural Gas
Moniz certainly comes off as an all-of-the-above kind of guy. Which is probably why few feathers were ruffled when he came onto the scene.
He's an outspoken advocate of natural gas and has been very supportive of fracking with the caveat that it must be done responsibly, so as not to wash out the low-carbon benefits of natural gas (versus coal). That means a potential regulatory framework to combat surface water spills and methane leaks will at least be kicked around in some form.
This is actually something I've supported for quite some time, as environmental pushback will continue if the industry doesn't get a bit more proactive in this area. Steps have been taken, but sadly, at a snail's pace.
Moniz has also become a big hit with the nuclear industry. A couple of years ago, he said that it would be a mistake to allow Japan's nuclear disaster to cause governments to abandon nuclear power and its benefits.
As an advocate of climate change mitigation, Moniz sees nuclear as a partial solution to reducing greenhouse gas emissions. He was also a member of the President's Blue Ribbon Commission on America's Nuclear Future, which has been very vocal about the need for better managed nuclear fuel facilities.
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Moniz Loves Solar
On the renewable energy side of things, Moniz is quite bullish on solar.
He already has a long history of consulting for solar technology and finance companies. He's worked for years on the solar side of MIT's Energy Initiative, and he's on the Board of Advisors for the Faunhofer Center for Sustainable Energy Systems. Apparently, while he's definitely a strong advocate for solar R&D, he's also been quite proactive on the deployment side. Certainly this was something I would argue his predecessor lacked.
For a nation that has one of the fastest-growing solar installation sectors in the world, support from Moniz on deployment could offer yet another serious shot of steroids.
As you may recall from a piece I did last week on solar installation, the United States is crushing it here. And the companies behind the lion's share of this installation growth are making investors incredibly wealthy.
Remember the solar installer and leasing company SolarCity (NASDAQ: SCTY)? That stock got a huge boost last week after Goldman Sachs announced it was brining a half billion dollars to the table to help finance new solar projects for SCTY.
I love this chart...
The Bottom Line
So, what's the bottom line on Secretary Moniz?
He's not new to the Washington game, and he certainly has no shortage of friends in high places.
He does view climate change as a serious issue and hopes to offer mitigation solutions through his support of natural gas, nuclear, and solar.
I suspect his support for natural gas and fracking will go quite far — and further bolster the growth of the domestic natural gas boom now underway.
His support for nuclear will probably serve to create a bit of enthusiasm for nuclear investors, but I'm not convinced it'll be enough to really help the industry as a whole. No matter how much this physics genius loves nuclear, cheap natural gas will continue to be more powerful than a room full of bureaucrats.
Solar supporters have been quite smitten with Moniz, and it is likely that the new Secretary of Energy and the solar industry will enjoy a very loving and lucrative relationship over the next few years.
All in all, I think we're really just looking at another version of former Energy Secretary Chu, but with a little more skin in the political game. That means he'll likely be looking to do more than hide out in a lab and talk about how important R&D is. Whether or not he'll be successful? Only time will tell...
In the meantime, we remain extremely bullish on solar installation opportunities and, of course, natural gas. Here's our most recent pick for the latter.
To a new way of life and a new generation of wealth...Jeff Siegel @JeffSiegel on Twitter Jeff is the managing editor of Energy and Capital and contributing analyst for the Energy Investor, an independent investment research service focusing primarily on stocks in the oil & gas, modern energy and infrastructure markets. He has been a featured guest on Fox, CNBC, and Bloomberg Asia, and is the author of the best-selling book, Investing in Renewable Energy: Making Money on Green Chip Stocks. For more on Jeff, go to his editor's page.
The Bottom Line
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