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Energy

Coal

Demand declines in heavy industry and the utilities have led to a consistent and ongoing decline in coal industry earnings.  Regulatory pressure, the unsuccessful quest for "clean" coal, and augmentation of U.S. domestic petroleum output have led to revenue diminishment and share price descent almost uniformly in the industry.  Outlook for the future is reserved at this time.

China's demand is  declining as their expansion has slowed considerably, necessitating the recent devaluation of their currency. 

 

 


Renewable Energy


Growth in the Wind, Solar, and other Renewable Energy areas has slowed considerably since crude oil prices have declined.  While the Green energy movement continues to expand providing impetus, solar and wind farms have become popular investment vehicles.  Government and utility company incentives as well as increasing solar cell efficiences have provided ongoing support for the residential and commercial solar industry.

Nuclear energy is viable and cost competitive, however, political considerations resulting from safety issue concerns have limited growth.  The Biofuel industry in recent years has been non-viable as the realization of absence of savings over alternate established fuel sources has been solidified.

 

 

Oil & Gas

September 3, 2015

Extensive use of fracking and horizontal drilling has exponentially increased U.S. oil and gas production propelling the U.S. to a position among the top 3 oil and gas producers globally.  Global demand has not kept pace with supply increases, and October crude oil futures are now at $47.09 per barrel, and since April of 2014, have been progressively approaching the December, 2008 low of $30.81. 

Middle East and Americas producers have maintained output, supporting lower prices while Russia's less diverse economy has suffered as a result, and is now in the midst of recession. 

Natural Gas prices, after a peak of 7.775 in March of 2014, have declined to a current October futures level of 2.715 approaching the March 2012 low of 1.959.  A Northern Hemisphere winter spike is likely as has occurred in many past years.




 

 


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