Summary
The global warming, climate change battle is going to take aim squarely at the current energy sector. Energy producers and high energy users that require the investment community must address new parameters in their risk mitigation strategies to address the new US – Obama administration’s reality.
Analysis
The world appears to be converging upon Washington to discuss climate change and it appears the Obama administration is welcoming government officials from Canada, Europe and other parts of the world to discuss the US joining the battle. It appears to be a foregone conclusion, good or bad, quite likely both.
I dare say this will define careers both in the energy and manufacturing sector and in the investment community. Those energy producers who act now in not only adopt immediate and existing technologies to reduce greenhouse gases and promote the development of new technology will be the winners both in the short term and in the long term. There are many technologies that exist today that seamlessly integrate with conventional energy production to reduce GHG’s. There are many forward thinking technologies that require development, support and investment from these energy producers to become commercially viable alternative energy sources. History will judge the leaders of these companies and dare I say their very long-term sustainability will be determined by their actions now to make the necessary changes to reduce GHG’s.
Likewise within the investment community during these very uncertain times those investment managers who seek out energy producers and solutions companies that provide targeted solutions to reducing GHG’s will not only gain the acceptance of the general public and the Obama administration, but will reap the financial rewards of leading the US and possibly the world out of the current recession. Bold – yes, true – yes. It is true because instead of having the money under management languish in the bank at interest rates that are a joke because of skittishness in the markets; new parameters need to be adopted for the current economic times. The new parameters must recognize the new reality of the US addressing climate change and that rather immediate effect on energy sources and energy production. Companies who are providing viable solutions to reducing GHG’s are the new boom sector of the coming months to the next bull market whether it is later this year or early next year.
