Here is your reality on oil prices and the surge of democracy in North Africa and the Middle East ... this feels a little like the fall of communism – widespread and domino like. BUT the difference is, we don’t know who is going to take over.
With the fall of communism, we knew who was taking over and the U.S. had cemented itself as the peace broker in the process. This is very different – and while I don’t think this will prove horrible to U.S. interests (a different reality for sure) in the region – the dust is not going to settle anytime soon.
If your worst case scenario is Muslim Brotherhood, Hamas and Al Queda influences in power, then oil becomes a political weapon for the new power regimes. If you have military transition and uncertain leadership, elections and evolution – this will take months if not years.
We may be in a period of higher oil prices for longer than we have ever dealt with, if only for the reality that this will take time and oil is a weapon.
There is no other way for the world to go than alternative and nuclear energy.
Some alternative energy plays to consider in the reality of higher oil:
China Solar
- (TSL) – Trina Solar
- (STP) – Suntech Power Holdings
- (YGE) – Yingli Green Energy
Anyone who watches the Shanghai market knows how many Chinese solar stocks there are out there, but many investors have been content to simply trade the group. Start by taking a look at Trina Solar.
Uranium Miners
- (SXRZF.PK) – Uranium One
With North Sea oil over $100 a barrel, the alternative fuels are back in rally mode. Good news for solar developers and other renewable plays — and good news for the uranium miners too.
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