Jeff Siegel - Angel Publishing

Tesla Motors Model S

Tesla Motors (NASDAQ:TSLA) has recently put out a new promotional video for the Model S.

Because we are fans of what Tesla has accomplished so far, and what they will accomplish in the future, we are happy to share this video with our readers. Check it out. . .

Russia Electric Cars

Thanks to a handful of Russian and American investors, city streets in Russia will soon be equipped with 2,000 electric car charging stations.

Check it out. . .

Big Oil Electric Vehicle Projections

I read an article this morning that highlighted some data released by BP and Exxon that suggests electric cars will only make up between 4 to 5 percent of the global market in 20 to 30 years.

Now I wonder how BP and Exxon came up with this data? (Insert sarcastic tone here)

Of course, I've also seen my fair share of questionably optimistic studies claiming that in 30 years, electric vehicles will make up 70 percent of the global market. I feel confident that both projections are extremely inaccurate.

The truth is, electric vehicles are likely to claim about 3 percent of the global market in about 10 to 12 years. And by 2042 (30 years from now), electric vehicles will probably represent about 15 percent of the global market.

Now I could be way off, too. But based on the first year sales of the Volt and the LEAF (which were quite impressive, despite what the media bullies and partisan slaves like to claim), the cost of oil production over the next 20 to 30 years, the projected decrease in battery costs, and just a more superior electric vehicle boasting 500-mile ranges and 10-minute quick charges, I find it difficult to believe that in 30 years at least 15 percent of the global vehicle market won't be electric.

In fact, I think 15 percent is actually quite conservative.

Let's face it: The internal combustion engine is an outdated technology. On a technological level, it simply cannot compete with what electric vehicles can offer. Now BP does expect the efficiency of combustion engines to double by 2030. And this would actually be a big deal if it wasn't going to happen around the same time the average range of an electric car will be 500 miles!

Nice try guys. But I think we'll just go ahead and continue to focus on progress.

The Next Evolution Of Microfinance

TEDxWomen reporter Gayle Tzemach gives a very inspirational presentation on women entrepreneurs. Her take on this subject is one that serves as an indicator of where the global economy is moving.

Check it out. . .

Tesla Motors Price Target

Tesla Motors (NASDAQ:TSLA) picked up some positive news today after it was announced that analyst Jesse Pichel from Jefferies initiative coverage with a $35 price target.

Calling Tesla the “Apple of autos,” Pichel notes that Tesla's strategy is based on a combination of technology, performance, unconventional marketing and a “cool factor.”

Pichel also commented on Tesla's price advantage, writing. . .

Model S offers unique value proposition: We believe the right economic question for the Model S is not “what is the payback period,” but rather, “would you buy a Model S with similar price/performance to a BMW 5-series and the ability to use cheaper electric fuel?” Unlike other EVs or hybrids that require a significant upfront price premium, the Model S is priced comparably to other luxury sedans in its segment.

We also believe that Tesla's a serious contender and has upped the ante in vehicle design and development. In fact, it could be argued that Tesla is responsible for lighting a fire under the asses of the big automakers. After all, we didn't see much development with the big guys until Tesla proved that you can successfully build and sell a quality, high-end electric car.

Just take a look at these. . .

The Tesla Roadster

The Model S

And coming soon, the Model X, which is an SUV crossover that will be unveiled in less than two weeks.

China Solar Advantage

Last year, SolarWorld AG filed a complaint with the Department of Commerce to counter low-cost solar imports from China.

SolarWorld claims that China's subsidies violate global trade rules and provide Chinese manufacturers with an unfair advantage.

They're right in that China offers huge subsidies for its solar industry. But is it unfair?

Certainly if you can't pump out solar panels cheaper than a heavily-subsidized manufacturer in China, you're not going to be happy. And I can't say I blame you.

But before we start throwing stones at China, let's remind ourselves that for years, we did a very good job at hindering domestic solar development on our own. Thanks mostly to useless Washington bureaucrats and the special interests that have long controlled them.

As a result, China beat us to the punch. And they're doing it again with wind energy, too. While lawmakers debate over what amounts to pennies offered in the form of a production tax credit for wind, China's also now becoming the largest manufacturer of wind turbines.

I have to be honest. From where I sit, it looks like we consistently missed some opportunities here, and perhaps we need to look in the mirror before we start demanding unreasonable tariffs and start a very dangerous trade war that could actually hurt the domestic solar industry even more.

In fact, just today we learned that more than 50,000 U.S. jobs could be threatened by tariffs on Chinese solar-energy equipment that some American companies are now seeking.

This news was released in a report by the Brattle Group, which published its data in response to the original SolarWorld complaint.

According to the report, 100 percent tariffs would result in 50,000 lost jobs and $698 million to $2.6 billion in losses to consumers. Tariffs of 50 percent would cut as many as 43,000 jobs.

Jigar Shah, founder of Sun Edison responded to the report by saying. . .

“We cannot allow one company's anti-China crusade threaten the U.S. solar industry and tens of thousands of American jobs.”

Shah has been very outspoken on this issue, and earlier this year offered a pretty solid argument to the Managing Director of Cleantech Research at AURIGA Securities. Take a look:

"I write to you not from one trading desk, but representing the 1,000 or more rooftops where I have deployed solar.

I write to you representing more than 97 percent of the U.S. solar industry. These are the people who have not only visited factories where solar panels are manufactured, but who have actually worked in those factories, and many more who have worked assembling, installing, and maintaining solar systems.

At a trading desk, one is managing portfolios, trading prices of commodities like solar panels and more. You may even be concerned about the cost of silicon chips used in computing (but we are not complaining about the low cost of silicon chips manufactured outside the U.S. in this dialogue).

Every day, we, the actual people who work in the solar industry, are interested in growing the deployment of solar, particularly at a cost that creates grid parity, location by location. More importantly, we are interested in preserving and growing the 100,000 American jobs in the industry, which, according to the 2011 National Solar Jobs Census published by the Solar Foundation, grew 6.8 percent between 2010 and 2011 -- nearly ten times higher than the national average employment rate
of 0.7 percent.

Real jobs. Real people. Using real tools.

By the way -- on the theoretical stuff, many of your colleagues disagree with you and might provide you with a bit of insight and education. See below:

Photon Consulting: “Overall, trade restrictions between the U.S. and China will destroy value in the global PV sector. Equally important, imposition of artificially higher prices for solar consumers would undoubtedly slow the adoption of solar power in key markets such as the US.”

Jefferies: “The U.S. solar industry, already suffering from a lack of financing, will experience higher module prices and lower demand if countervailing duties are imposed as early as March 2012.”

Axiom: “There is simply more supply than there is demand," Johnson said. "It's very simple economics." And it's not the Chinese's fault, Johnson said: "You can't complain because a guy is beating you," Johnson said.

AEI Research: “Higher module prices are likely to lower the excess return, putting solar energy at risk of losing years of economic potential as a result.”

SEMI: “This case could lead to significant price increases that could have a significant deleterious impact on SEMI members, many of whom are upstream providers of high-value-added equipment and materials. It will also impact downstream service providers, such as installers, where a majority of solar industry jobs are concentrated."

I'm sure there are plenty of folks who will disagree with me on this. And that's fine. But I maintain that while we blame others for our own complacency and incompetence, others are capturing more and more market share of what is certainly to be one of the greatest investment and growth opportunities of the 21^st century.

This is simply unacceptable.

Warren Buffett Renewable Energy Investment

Publisher's Note: For the past week, we've been telling you about our upcoming free informational seminar about investing in precious metals.

Well, the day is almost here... The seminar begins tomorrow at 6 p.m. (EST). So if you want answers to any gold or silver questions you may have, take a moment to sign up today.

Brian Hicks

Until recently, he's kept it pretty quiet.

In fact, when he ponied up his first billion for a piece of this action, he barely made a peep.

The only reason I found out about it is because I know some of the players behind the scenes...

These are the money guys that tend to keep a low profile, yet are typically the most important guys involved in these types of deals. And that's the way they like it.

Regardless, for the past 12 years, Warren Buffett has been meticulously building his position in some very select modern energy markets. And in typical Buffett fashion, he's going make billions.

Fortunately, you can get a piece of this action, too.

You just need to do two things:

First, tune out all the hype and B.S. spewing from Washington and the mainstream media about modern energy technologies. They know nothing, and are nothing more than parasites. As investors, they are of zero value to us.

Second, the next time you look at a solar panel, wind farm, or state-of-the-art, super-efficient co-generation plant, remember one thing: These were not built for treehuggers; these were built for very wealthy investors.

Modern energy technologies don't exist to appease environmentalists. They exist to make very rich individuals even richer.

Buffett Loves Renewable Energy... and Natural Gas... and Nuclear... and...

Warren Buffett isn't hanging out in drum circles talking about clean air. But he is making billion-dollar clean energy deals — and he's actually been doing so for more than a decade.

And last week, Buffett upped the ante on clean energy once again by announcing that his MidAmerican Energy Company is officially forming a branch dedicated solely to the development of modern renewable energy.

The new branch will be broken down into four units:

Solar
Wind
Geothermal
Hydro

MidAmerican's already got more than $9 billion in wind and solar alone, and more is expected this year.

The energy giant — which is the largest electricity provider in Iowa, Wyoming, and Utah — is clearly bullish on renewable energy. And management isn't shy about making this new growth strategy known.

In fact, MidAmerican VP Jonathan Weisgall pulled no punches last week when he told reporters this move was simply a vote for renewable energy and not some random bet.

Of course, Buffett's no fool either, and he isn't putting all his eggs in that “clean energy” basket...

While the Oracle of Omaha clearly understands that the long-term outlook on energy will not be dictated solely by fossil fuels, MidAmerican's conventional energy investments will continue to butter most of its bread for years to come.

~~eac_alt_energy~~

Natural Gas, Oil, and Nuclear: Buy What Buffett Buys

MidAmerican already transports 8% of the country's natural gas through its own pipelines, and Burlington Northern Santa Fe (which Buffett owns) moves oil from the Bakken region in North Dakota to refineries.

Interestingly, with the Keystone Pipeline construction delayed (I say “delayed” because only a fool believes this pipeline won't be built), oil producers will now have to rely even more on Burlington.

This is a very bullish case for freight rail this year — and of course for continued production in the Bakken, particularly in the Three Forks region, where we've been telling you to load up for months.

Buffett's also big on nuclear — but not in the way you might think.

You see, back in 2008, MidAmerican tried to do a deal in Idaho, but that fell through before Buffett ponied up any real money. He then looked to get a piece of Constellation's Calvert Cliffs nuclear reactor, but French state-owned utility EDF beat him to the punch.

Then Fukushima happened, which resulted in Buffett losing interest in conventional nuclear power generation, saying: “[conventional nuclear] isn't going to happen because the psychology has changed.”

But here's what a lot of media reports missed: Even after Fukushima, MidAmerican's nuclear energy unit had been sniffing around a different kind of nuclear technology — small modular reactors.

Buffett may be in tune with the kinds of risks folks are willing to take when it comes to power generation, particularly after one of the worst nuclear meltdowns in history, but he also embraces and doesn't run from disruptive technology.

Could these small modular reactors prove to be a disruptive technology that could make Buffett even richer?

Perhaps. But that's not the only disruptive technology in the nuclear space right now.

And I would argue that small modular reactors are nothing compared to a recent breakthrough in nuclear fuel technology that allows for both increased safety and lower operational costs, the latter being a big deal as conventional nuclear simply could not exist today without massive government subsidies.

Of course, thanks to a new development in nuclear fuel technology from our neighbors to the north, these huge nuclear subsidies could be a thing of the past.

And the company behind this development?

Well, let's just say that between its truly disruptive technology and the fact that the president of this company was recently appointed as the head of the World Nuclear Association's Fuel Technology Group, it's probably going to be one of the easiest triple-baggers we'll see in 2012.

My colleague Nick Hodge actually has some video of this company's technology in action. Interestingly, he's the only analyst on the planet who was allowed the necessary access to obtain this footage. Not even the big dogs over at Goldman could get their hands on it.

But that's how it goes when you're willing to get your hands dirty instead of sitting behind an antique desk in some overpriced Wall Street office.

Of course, it won't be much longer before every Wall Street hack is jumping into this stock...

~~nuclear_signup~~

~~jeffs_signoff~~

Sustainable Agriculture

Where does your food come from?

How is it grown?

How is your meat processed?

These aren't typically questions we think about while eating a spinach salad or biting into a burger. And sadly, that's what most industrial farming operations are counting on.

The fact is, our food system is one that is highly unsustainable. Through the rapid deterioration of our soil to the push to produce more meat at a cheaper cost, we are choking on our own progress.

Now there's an amazing movie called FRESH that highlights this very issue. But it also offers solutions that are actually being integrated right now. You see, this is not your typical, depressing documentary that focuses on the problem but offers no solution. In fact, I would argue that this movie offers those who care about sustainable agriculture, a sense of hope.

Normally, when I come across these types of documentaries, I include a trailer. But for the next few days, you can actually watch the entire movie for free right here.

I strongly urge you to check it out. It's truly inspiring.

Wells Fargo Solar Investment

Wells Fargo just announced that it intends to pony up $100 million for new solar projects being developed by Enfinity America Corp.

Why would they do such a thing?

Because solar continues to be a booming business, and there's a lot of money to be made in the solar game.

Wells Fargo, just like Citigroup and U.S. Bancorp, which have both been very active in the clean energy space, has already invested $2.7 billion in more than 300 projects since 2006.

Enfinity is one of the world's largest solar development companies on the planet, with activities in North America, Europe and Asia. The company has developed some of the largest solar projects in the world, and it continues to expand its operations on a global scale.

Here's a quick history on Enfinity. . .

New Mexico Clean Energy

New Mexico, nicknamed the Land of Enchantment, has made numerous strides toward becoming more energy efficient and using renewable energy. Its goal is to have 20 percent of all investor owned utilities to incorporate at least 20 percent renewable energy by 2020, and all rural electric cooperatives incorporate a minimum of 10 percent renewable energy by 2020. By becoming more energy efficient, New Mexico will become more energy independent and make headway in becoming one of the most well noted sustainable states in the United States.

1 ) Incentives and Policies for Renewable Energy and Energy Efficiency in New Mexico. The state government of New Mexico has created a number of great financial incentives for both homeowners and business owners that are looking to make the switch to renewable sources of energy and energy efficient products. These incentives include a number of corporate tax credits for items like sustainable building and renewable energy production, performance based incentives, personal tax credits, property tax incentives, sales tax incentives on items like biomass equipment and solar energy equipment, and utility rebate programs from leading energy providers like El Paso Electric Company, New Mexico Gas Company, and Xcel Energy.

2 ) New Mexico Wind Energy Center. The New Mexico Wind Energy Center was established in October of 2003 and looks to support New Mexico’s most ambition renewable energy project. Its wind center, located 170 miles from Albuquerque is suited for the windy landscape of the state. There are 136 turbines at 210 feet high. All together, it can create approximately 200 megawatts of energy, which is enough to power 94,000 average homes in the state. It was awarded the 2003 Utility Leadership Award because of its dedication to renewable energy and its advancements in wind energy.

3 ) Green Grid Initiative Gets Momentum. In 2009, New Mexico started to set in motion a brand new plan that will aid in creating the first fully integrated smart green grid in the United States. Along with state utilities, the government officials are working with national labs, energy businesses, and research universities to have the green grid modernized by the year 2014. The objective is “To create an Internet-enabled grid to allow utilities to continuously monitor energy supply and demand in real time. Automated controls would remotely shut things on and off across the network to conserve energy and better balance generation and consumption. Consumers also would receive real-time data on energy prices to decide when they want to use appliances or adjust thermostats.” With this project, New Mexico experts to reduce total consumer electricity use by six percent, reduce the local need for peak power generation by 25 percent by the year 2025, create over 850 permanent jobs, and increase private and public revenue by $11.5 billion by 2020.

4 ) University of New Mexico Living Green Program. At the University of New Mexico, the Resident Life and Student Housing association created the Living Green program. This is part of the university’s larger sustainable movement. The Living Green program provides students in dormitories with ways to conserve energy on a regular basis. These ideas include turning off all electronics when not in use, conserving HVAC systems by closing windows when system is in use, recycling at all times possible by placing recyclables in the right receptacle in the dormitory building, and cutting back on all waste, such as getting smaller servings in the cafeterias.

5 ) Geothermal Project Heading in Right Direction. In 2010, Raser Technologies, an energy technology company obtained over $15 million in financing for a New Mexico Lightning Dock project from Evergreen Clean Energy and FE Clean Energy Group. When this project is completed it will provide the state is 15 megawatts of clean geothermal power. This announcement demonstrated that there is still investor interest to create clean energy sources.

6 ) Energy Conservation and Management Division. The Energy Conservation and Management Division is part of the New Mexico Energy, Minerals, and Natural Resources Department. This division aids in the development and implementation of successful clean energy programs, including energy efficiency, renewable energy, clean fuels, conservation, as well as efficient transportation. The goal is the promotion of economic and environmental sustainability for all the citizens of new Mexico.

7 ) New Mexico Solar Energy Association. The New Mexico Solar Energy Association is a nonprofit organization that is committed to the continual promotion of solar energy and other sustainable practices. It was established in 1972 to find ideas and methods to use renewable energy and determine how smaller villages could become sustainable. The mission of the New Mexico Solar Energy Association is to “Promote clean, renewable energy and sustainability in New Mexico through education, empowerment, collaboration, and advocacy.” The association holds the Solar Fiesta every year, a two day educational event that provides information about all forms of renewable energy to everyone in New Mexico.

8 ) New Mexico Biofuels Information Center. The New Mexico Biofuels Information Center is a nonprofit organization established in 1998 to promote the utilization of utility-scale renewable energy for the generation of electricity as well as to further the utilization of renewable fuels for transportation. The center is a member of the New Mexico Sustainable Energy Collaborative. The New Mexico Biofuels Information Center works with petroleum retailers to create partnerships that are mutually beneficial. One of the pilot programs the center is looking to take on is a school bus biodiesel program. It would provide a 1,000 gallon biodiesel tank (above ground) that would be installed at the school bus refueling yard.

9 ) New Mexico Renewable Energy Conference. Every year, the New Mexico Renewable Energy Conference is held in Albuquerque, New Mexico. The objective of this conference is to locate more efficient and affordable ways to “mesh large scale solar and wind farms and smaller distributed generation systems that include the sea of solar panels popping up on residential rooftops around the world into grids that are dependent on consistent sources of power.” Also as a topic of discussion at the conference is how policy makers are able to develop regulatory roadmaps that would encourage the creation of additional sources of renewable energy.

10 ) Largest Solar Photovoltaic Project Completed. In August of 2010, the largest solar photovoltaic array in New Mexico was completed. This 1.1 megawatt project was installed in the city of Albuquerque at the headquarters of Bell Group. The solar photovoltaic array spreads over five acres and generates enough electricity to meet approximately 80 percent of the energy needs for Bell Group. It will avoid the creation of an estimated 1,125 tons of carbon dioxide emissions annually. As an added bonus, it also provides shaded parking areas for visitor and employee vehicles.

Article by Shawn Lesser, Co-founder & Managing Partner of Atlanta-based Watershed Capital Group – an investment bank assisting sustainable fund and companies raise capital, perform acquisitions, and in other strategic financial decisions. He is also a Co-founder of the GCCA Global Cleantech Cluster Association ”The Global Voice of Cleantech”. He writes for various cleantech publications and is known as the David Letterman of Cleantech for his “Top 10″ series. He can be reached at shawn@watershedcapital.com

An Intro To Electric Cars

So it looks like the DOE has put together a new video explaining electric and plug-in hybrid electric vehicles.

If you're a regular reader of these pages, this video probably won't tell you anything you don't already know. However, it's a pretty decent first attempt at disseminating some very important information about the electrification of our personal transportation.

Check it out. . .

There's still quite a bit of misinformation out there about electric cars. Hopefully, these types of educational videos will enlighten a very misinformed public.

No More Chevy Volt Fires

A couple of weeks ago, Ford recalled 539,000 vehicles to fix flaws that could lead to fires in some SUVs and complete loss of power in some minivans.

I think that story made headlines for about an hour.

Now think back to the Chevy Volt recall from late last year. I'm sure you remember.

After a series of crash tests led to a couple of Chevy Volts catching fire in a testing area, the news streams were pouring over with coverage.

Oh no, the electric vehicle is dead!

Government Motors taxpayer boondoggle up in smoke!

Electric Car Momentum Halted After Cars Catch Fire!

There were thousands of stories that used this opportunity to bash electric cars. You know, those things that can help us displace foreign oil and alleviate the environmental burden that comes with living in our car-centric society.

It's sad really, that partisan slavery and a general pride in complacency and ignorance is something we champion so well in this country. But it doesn't matter.

The fact is, electric car momentum is alive and well. And as far as the Volt fires?

Well, the National Highway Traffic Safety Administration has officially closed its investigation into whether or not the Chevy Volt poses a fire risk after an accident.

The agency said it found no evidence of a defect trend with the Volt and concluded that it does not believe electric vehicles are any less safe than gasoline-powered cars.

I'm quite certain this won't get as much coverage as the Volt fires. But at least we can put that issue to rest while the naysayers try to dig up another excuse to deter progress.

Montana Wind Power Development

Last week, Goldwind USA announced that it had acquired two 10 megawatt windfarms in Shawmut, Montana.

Volkswind USA will construct the farms, and has recently secured a power purchase agreement with NorthWestern Energy. Construction of the project is expected to begin shortly, with operations starting by the end of the year.

Here's what Matthew Olive, Goldwind USA's V.P. of Sales had to say. . .

This sale marks our 14th deal in the Americas sine we entered the market in June of 2010. Our customers continue to choose Goldwind turbines because their track record of unparalleled efficiency and reliability. We are pleased that our counterparts with Volkswind have recognized those advantages and we're excited to work with their team and with the community in Shawmut to get this project done."

Goldwind, which is actually a China-based company is aggressively moving into the U.S. market. The company already had turbines in Minnesota, Illinois, Massachusetts, New York, Rhode Island and Iowa. The company also recently announced a 34.5 megawatt deal and a 15 megawatt deal in Chile and Ecuador, respectively.

Solar Competes with Natural Gas

From 2005 to 2008, I made an absolute fortune in solar.

And it was insanely easy, too.

Hell, back then you could pretty much just pick any random company with the word “solar” attached to it, and watch your money double, triple, even quadruple.

Yes, those were three great years. And I live very comfortably today because of those three years.

But the solar market isn't what it used to be.

Last year, solar stocks got slammed. And while most expect to see a recovery in the space this year, the sector remains as volatile as ever.

Now just a few weeks ago, solar stocks were soaring after some new data came out that indicated a rise in solar installations in Germany in Q4.

The result was a quick run on solar stocks, and certainly traders made out...

But then there were those poor souls who didn't read the fine print, ponied up a few thousand, and are now wondering what happened to the solar run all those analysts on television were talking about.

Yes, a few weeks ago there was some positive data, which apparently cast a shadow over the fact that cell and panel prices were still continuing to fall.

And it didn't take long for the sector to shed its recent gains, then fall even further after Germany's Energy Minister announced that the country's Feed-In Tariff should be adjusted every month instead of twice a year.

In a matter of minutes, we watched solar stocks fall off 10%, 15%, even 20%.

While I continue to remain bullish on the long-term growth picture for solar, unless you can stomach the risk and volatility, the solar space is no space to be right now.

Truth is until we see next quarter's forecasts, I'd be very hesitant about playing solar.

This Will Blow Your Mind!

As the last remaining solar manufacturers struggle with depressing margins and intense competition, one little solar tech company continues to pay off for investors.

And the reasons are simple: This solar stock has zero competition, it has no exposure to the euro, and it isn't even really affected by the potential loss of subsidies.

Truth is, this company's technology allows it to reach profitability without a single penny in subsidies.

This technology is truly ground-breaking. It will enable the cost of solar to come down so much, it could actually compete with all the dirt-cheap natural gas we have at our finger tips. I'm completely serious.

And here's the most fascinating part... this particular solar technology doesn't actually need the sun's rays to work.

Natural Gas is Still King

There's no doubt that there's still plenty of money to be made in solar.

You just have to know where to look, and of course, not get caught up in all the hype generated by those know-nothing media buffoons who couldn't even tell you the difference between solar thermal and solar PV, much less know how to play the solar market...

Hell, these are the same guys who were telling us just a few years ago that natural gas would never fall below $5.00.

Last Friday, it fell below $2.30.

And now they're scrambling to dig up any bearish news they can find. But nothing they say can stop the natural gas boom.

~~eac_alt_energy~~

I've said it a thousand times before, and I'll say it again: Natural gas is king.

And right now, it doesn't take much to make money from this sector. In fact, it reminds me a lot of the solar sector from 2005 to 2008. It's just so easy to make a killing.

Just ask my colleague Keith Kohl, who was touring today's biggest natural gas properties back when the word “hydrofracking” was a term only used by insiders and roughnecks.

This guy's made me — and his readers — some serious coin in the natural gas space...

Especially with his latest find at the Three Forks location in North Dakota. Check it out:

I know it may not look like much. And I know it may not sound as sexy as solar...

~~nat_gas2~~

~~jeffs_signoff~~

California High-Speed Rail Development

Despite simple-minded critics who blast high-speed rail development because they refuse to comprehend the value and necessity of infrastructure investments, California Governor Jerry Brown thew his support behind the new high-speed rail system in the Golden State in his second State of the State address.

Here's what the Governor had to say. . .

"The Central Valley Water Project was called a 'fantastic dream' that 'will not work.' The master plan for the interstate highway system in 1939 was derided as 'New Deal jitterbug economics.' In 1966, then-Mayor Johnson of Berkeley called BART a 'billion-dollar potential fiasco.' Similarly, the Panama Canal was for years thought to be impractical, and Benjamin Disraeli himself said of the Suez Canal: 'Totally impossible to be carried out.' The critics were wrong then, and they're wrong now.''

The bottom line is that high-speed rail offers tremendous environmental, economic and national security benefits that are well worth the investment. Trust me, future generations will thank us. Just as we have thanked previous generations for the interstate highway system.

Natural Gas Export Stocks

“We have so much natural gas coming up that we don't know what to do with it.”

That's what Andrew Ware, a spokesman for Cheniere Energy, told reporters last week.

But Ware's statement isn't entirely true.

Because Cheniere knows exactly what to do with it.

And as a result of this company's actions, jobs will be created and enormous amounts of money will be made by those who invest appropriately.

Dirt Cheap

Cheniere Energy (AMEX:LNG), along with about a dozen other producers, is swimming in supply. There's so much, the cost of power production has plummeted to record lows.

Hell, my energy bill last month was so low, my wife actually thought the utility company made a mistake.

There's no doubt that consumers are loving all this cheap natural gas. And we should enjoy it now, because it won't last forever.

You see, last Friday natural gas futures closed at $2.67 per million BTUs. Dirt cheap!

But it's going for as much as $12 per million BTUs in Europe and $18 in a few Asian markets.

As a result, there are now nine domestic producers lining up to get approval to export roughly 10 billion cubic feet of liquefied natural gas per day. That will certainly translate into a nice pay day for producers, but also a boost in pricing for U.S. consumers.

The latter is causing some to cry foul. And this week, the Energy Information Administration (EIA) is expected to release a report that will actually examine the price effects of potential exports.

What will that report tell us?

Who cares?

It's nothing more than a tool to placate a few boat rockers.

Would an increase in exports result in an increased price for consumers?

Probably.

And certainly the DOE will glance at this data before issuing new export permits. But the only concern the DOE really has is making sure that an increase in exports won't cause a domestic supply disruption.

And that ain't gonna happen, my friend.

~~eac_nat_gas~~

The Bottom Line on Exports

We really do have more natural gas than we know what to do with.

The fact is, natural gas is the new king. Hands down, nothing can touch it. The days of coal being the primary source of our power generation are coming to an end. Natural gas is taking on that role going forward.

Some of our natural gas bounty will also be used to power our buses and trucks. And of course, we'll export an enormous amount, too.

Because here's the bottom line on exports. . .

More natural gas exports equal jobs. It's that simple. And you'll find few in Washington – on either side of the aisle – willing to trade cheaper utility bills for job creation and GDP growth.

Don't think for a second those nine companies aren't going to get those export permits.

And when they do, the flood gates will open wide and every domestic producer that's currently operational is going to benefit handsomely. That's why we're loading up now.

Because once those export permits are released, you're going to see a nice, long steady price increase that's going to supply us with a nice, long steady flow of income. Particularly from the Three Forks formation, where for the past few weeks I've been watching a lot of big money getting very cozy with the producers.

~~nat_gas2~~

To a new way of life, and a new generation of wealth. . .

~~jeffs_signoff~~

Youngstown Fracturing Earthquake

I was 12 years old when I experienced my first earthquake... though at the time, I didn't even know it.

I was in my bedroom while my parents were in the basement.

The house shook slightly, and my father yelled up to me, “Quit jumping around up there!”

Baffled, I attempted to explain that I was only reading and not jumping around. I was quickly disciplined for lying.

(The next morning — after we found out it was an earthquake — my father laughed and apologized for yelling at me.)

Since then, I've experienced two more earthquakes. Both happened last year, and both were intense enough to get my heart racing.

Growing up on the East Coast, I have little experience with earthquakes. And I know I'm not alone.

In fact, after a magnitude 4.0 earthquake shook the city of Youngstown, Ohio, last week — a place with no history of earthquakes at all — folks got real anxious and starting asking a lot of questions.

Was it just a random event?

Was it a prelude to the Mayan Armageddon?

Was it those fracturing wells that some have warned us about causing earthquakes?

The Devil is in the Details

It's highly unlikely that the recent earthquakes that shook Youngstown, OH, were just random events. And I'm not confident that the Mayan calendar serves as an accurate predictor of the end of the world.

No, for the good people of Youngstown, it is extremely likely that their recent earthquake experiences have something to do with fracturing.

Now before you start drafting any hatemail or criticize me for being anti-jobs, understand that I'm not saying that all our hydrofracturing operations are causing earthquakes...

There's absolutely no data to support such an argument — and quite frankly, if this were the case, we would've been aware of this problem when fracturing first started decades ago.

The fracturing connection to the Youngstown earthquakes isn't actually a result of the actual hydrofracturing, anyway; instead, it seems to be connected to the deep underground injection of wastewater that was generated during the fracturing process.

According to John Armbruster, a seismologist Ohio regulators brought in to monitor the earthquakes:

Youngstown is an area which doesn't have a history of earthquakes. This disposal well started operating in December of 2010.

Three months later, the earthquakes began and the earthquakes are trickling along. From March to November, you have nine earthquakes, all of a similar size, 2.5, 2.1, 2.7.

On Christmas Eve, there was a magnitude 2.7 earthquake. Our location of that Christmas Eve earthquake was about one kilometer from the bottom of the well and the location of the earthquake was sufficient evidence that there could be a link.

Following the well-publicized coverage of Armbruster's analysis, many residents of Youngstown started questioning whether or not it was worth it to host all these disposal wells.

Certainly lax regulation in Ohio has made it a prime location, but with all these recent earthquakes, changes could be coming.

~~eac_nat_gas~~

Even Earthquakes Can't Stop the Bull Market

I don't know if we'll necessarily see stricter regulations in Ohio. But I do know that when you consistently trigger earthquakes in regions where earthquakes are uncommon, business as usual will not be an option...

Especially in this case, where you'll find little support for oil & gas lobbyists reciting the “You can't prove it” line that's become a common refrain for decades.

When the earth rattles, people reassess the trade-off for the sake of economic recovery promises.

That being said, this is not something that will slow the domestic production of oil and gas in the United States. In fact, I would argue that it will make it safer and more efficient, which, despite what some media whores might tell you, is actually a good thing for our country.

We certainly require increased oil and gas production. Might as well do it in a way that poses less of a threat to our natural capital.

Going forward, I believe the oil & gas industry will absolutely have to address this issue. There's just no way they're getting around it.

So there are two possible approaches they're likely to take.

The first is quite simple...

You see, there are disposal wells all across the country. But only a very small percentage are being linked to earthquake triggers, because not all disposal wells contain brittle basement rock riddled with faults.

So going forward, it's possible that many of these operations will simply pony up for seismic surveys before proceeding. Rest assured, no oil & gas company actually wants to see a repeat of these earthquakes anywhere else.

Another option is for these operations to recycle the water instead of injecting it into waste wells.

I attended the subcommittee on natural gas in D.C. last year, and I found that most oil & gas companies are actively developing their own wastewater recycling processes.

There are also a number of companies that provide water recycling services for fracturing operations. But at the end of the day, I think that if the oil & gas companies decide to go this route, they'll just do it themselves, and not outsource those kinds of operations.

Point is, even earthquakes can't stop the domestic production of oil & gas. This is a done deal, and there's no turning back.

Although lately, I have noticed more "big money" interest in domestic production operations that haven't had any earthquake issues like the ones in Youngstown...

~~eac_shale_gas2~~

~~jeffs_signoff~~

Recycling Opportunities

I came across this TED video a few months ago.

It's an in-depth look at the future of recycling. It's absolutely fascinating, so I thought I'd share it with you here. Enjoy!

Energy Investments for 2012

2011 was the last year Hilda spent on this earth.

A mother, grandmother, and great-grandmother, Hilda embodied everything that is right with this country...

The daughter of a German immigrant who made a living as a grave digger, Hilda grew up just outside of Baltimore City.

As a child, she helped her mother grow vegetables, raise chickens, and look after her siblings.

She was born into a family that valued hard work and family obligations. And in her 80 years, I never once heard her talk about “how hard things were” when she was a kid.

No, for Hilda, hard work and family were not seen as burdens — but rather as sources of pride.

And after she became a mother at 19, it was her work ethic and respect for family that enabled her to raise two very successful daughters while her husband, a career Navy man, spent a good number of years overseas protecting our nation — and often on submarines, which meant she had zero contact with him for entire deployments.

I cannot imagine how difficult it must've been for a young 20-something raising two children while her husband was off running top-secret missions in some of the earliest nuclear subs in the U.S. fleet.

But for Hilda, it was never about what she couldn't do; she didn't have that option.

For Hilda, it was about what she had to do — and more importantly, what she wanted to do...

Hilda wanted to provide a good life for her family. She wanted to be of service to her country, and not a burden.

She looked forward to providing support for returning soldiers and the young families of other soldiers that were deployed for months at a time.

All in all, she was a strong woman, a loyal wife and mother, and a source of inspiration for her grandchildren.

Which is why when I would talk to my grandmother Hilda about the work I was doing, I always got great pleasure when she approved.

Defending Progress

I can't say my grandmother knew much about electric cars or solar energy, but she knew the importance of providing for future generations. And after reading my book, Investing in Renewable Energy, she agreed that as a nation, we need to embrace progress and not attack it or trivialize it.

This is a point that I have been making for close to a decade now, as I continue to help investors profit from the transition of our energy economy.

While my primary goal is always to help investors like you create and protect your wealth, over the years I have also become somewhat of a defender of progress.

It is a role that I never expected to take, and quite frankly, it's a role I never expected would be needed. How anyone would ever choose complacency over progress is beyond me...

But when I read articles about “the demise of the electric car” or how solar and wind are “scams,” I become infuriated — for two reasons:

These types of articles are almost always written by people with intentions that are not honorable. Any attempt to slow progress or keep our nation shackled to a broken energy economy that shrinks our wealth and increases our vulnerability to hostile nations or environmental catastrophes is despicable.
These types of articles also tend to dissuade investors from modern energy opportunities. As a result, it can becomes a chore to help people make money — which, when you think about it, is absolutely ridiculous! Especially considering the dozens of profits we've made over the years by investing in the right modern energy stocks.

~~solar_2~~

A Profitable Evolution

Although I have been singing the praises of modern energy for years, I've never once suggested that investors should put all their eggs in this basket.

There is absolutely no doubt that the future of energy will not be dictated by fossil fuels... but that doesn't mean everyone's going to be “going solar” and driving electric cars tomorrow.

The transition of our energy economy will not happen overnight. But it will happen.

In fact, it's happening right now. And we are extremely fortunate to be witnessing the earliest stages of this transition.

Solar and wind power production, on a global scale, continue to grow at a rate that is absolutely mind-blowing.

The rapid deployment of electric cars from now well into the next decade will impress even the most critical of electric car naysayers.

New energy-efficient building technologies that will not only drastically cut energy use, but even serve as power generators, are quickly becoming the new norm.

Over the next eight years, we will see an enormous amount of new grid development and upgrades.

We will witness the continued growth of high speed rail (mostly outside of the United States), mass transit systems, and more walkable communities that will allow us to conserve enormous amounts of energy, and even make the air and water a little cleaner for future generations.

But while all this is going on, we will continue to utilize our fossil fuel resources.

As investors, we need to be conscious of this, and not allow stubbornness to keep us from making money.

Look, I believe that it is in our best national interests to support the development of modern energy and alternative transportation technologies. For the sake of our economy, for the sake of our environment, and for the sake of our national security, this is not something that should be hijacked by dishonorable bureaucrats and media whores.

I also believe that in order to get there, we must not abandon our quest for fossil fuels — but instead support the safer and “cleaner” production of them.

Because the fact is you can't build the future of energy without the old guard.

Fossil fuels and modern energy actually go hand in hand. And they should not be pitted against each other.

You don't have to blindly criticize the future if you profit from oil and gas. And you don't have to blindly criticize the necessity of our fossil fuel resources if you profit from modern energy.

Look, we're all here to make a buck. And the transition of our energy economy is going to allow us to do just that for many years to come.

The added bonus is that if we do it right — and seek progress instead of complacency — we will also do something very, very important...

We will provide a better world for future generations.

A world where our children are not held hostage by foreign oil cartels. A world where the air and water is cleaner. A world that our grandparents can be proud of.

As we head into 2012, my focus will remain unchanged: to be a facilitator, not a detractor, of progress, and help you create and protect your wealth.

~~jeffs_signoff~~

Tesla Electric Car Investing

“I'm spending a fortune on gas,” he told me after throwing back his second glass of some very powerful eggnog.

My cousin, who owns a small HVAC company just outside of Richmond, drives 110 miles round-trip six days a week.

He used to live closer to his office, but he decided to move out to the country in 2006. And while his house and adjoining 12 acres are blanketed with peace and quiet, his daily commute is one that I wouldn't wish on anyone.

And of course, any time gas prices head north, he feels it. But these days, it's a little worse.

His business has been struggling for the past couple of years. He's still profitable, but he's not pulling in the kind of scratch he saw before the recession took hold.

He had to lay off some staff and he's putting in more time at the office.

His dream of early retirement is on hold for now.

So I was surprised when he told me he wanted to get an electric car...

Now is Not the Time

My cousin is a smart guy.

He started his own business when he was 22 years old. He had one used truck, a lot of borrowed equipment, and no desire to work for anyone but himself.

At 25, he landed his first major job for a commercial developer. He reluctantly took on some debt and hired a few people.

By the time he was 28, he had a small fleet of trucks and more than 20 full-time employees.

He's a self-made man who pays for pretty much everything in cash. And he definitely didn't need a loan when he bought his $480,000 home.

So I couldn't understand why he would want to buy an electric car to get to and from work every day.

~~eac_nat_gas~~

He's read all the data, and knows that unless he goes for a high-end Tesla Roadster (which I know he doesn't like because it's too low to the ground for him), there is currently no electric car on the market that can give him an all-electric range of 110 miles.

He could go for a Chevy Volt, which would give him about 35 to 40 miles in all-electric mode before it starts running on gas...

But he wants all-electric. Said he's tired of spending his money on an addiction that makes our nation weak.

In any event, I told him not to buy an electric car right now, because it simply could not provide the all-electric range he requires for his daily commuting.

Now if you're a regular reader of these pages, you know I'm not typically one to dissuade anyone from getting an electric car.

But the bottom line is that right now, if you're not one of the more than 70 percent of the daily commuters that drive less than 40 miles per day...

An electric car is not for you.

(According to the Bureau of Transportation Statistics, more than 70 percent of U.S. commuters drive 40 miles per day or less.)

Of course, next year, that won't be the case.

At $5 a Gallon...

After confronting the reality of today's electric offerings, my cousin agreed that now is not the time for him to get an electric car.

But come next year, he may be first in line for a Tesla (NASDAQ: TSLA) Model S.

Expected to hit the streets in mid-2012, The Tesla Model S can get him from 0 to 60 in 5.6 seconds, reach a top speed of 125 mph, and allow him to travel about 150 miles on a single charge — more than enough for his daily commute.

This car, however, will cost him about $50k.

His current car, a Toyota Avalon, ran him only $31k when he bought it.

That's a $19,000 difference in price. Certainly nothing to brush off.

But consider this...

This year, my cousin will have spent about $3,600 on gas.

If gas prices average out the same price over the next eight years (which you know is nothing more than wishful thinking), he will spend $28,800 on gas.

Including the cost to fill up, his $31,000 Toyota will actually cost him almost $60,000 to drive.

Of course, you still have to fill up an electric car, too — just with domestically-produced electrons instead of 87 octane.

We looked at my cousin's cost per kWh, and figured it would cost him about $10,500 for battery charges over the course of eight years.

That brings the total cost on the Model S to about $60,500 for eight years of operation.

He's definitely not going to save a ton of money buying the Model S, but he's also not swayed. For him, the convenience of “filling up” while he sleeps — and the ability to hedge against oil spikes — is well worth it.

Of course, he's also quite wealthy, so dropping $50k on a car isn't a big deal for him.

But for most folks in this country, $50k is a lot of money. And a lot more than most are willing to spend on a vehicle.

That being said, I did come across a very interesting Deloitte report earlier this year which indicated that at $5.00 a gallon, most Americans would be willing to buy an electric car.

Despite increased oil production in the United States and Canada, by the end of 2012, we will be paying no less than $4.00 a gallon. By 2014, we'll easily be at $5.00.

So will there be even more interest in electric cars at that price?

Certainly the major automakers are betting on it.

Every major automaker today either has an electric car on the road, in production, or in development.

And although Tesla isn't considered a “major” automaker, there have already been 6,500 preorders for the Model S.

One analyst at Pacific Crest Securities noted he expects 13,000 Model S preorders by the end of the first half of 2012.

He also believes the stock could touch $42 a share within the next year.

I don't know if either will happen. But I do know that the Silicon Valley agitator has sold more than 2,000 of its $110,000 Roadster, and it will likely sell out completely next year when it sells the last of a limited 2,500-unit run.

Not bad for a little startup that started selling a six-figure electric car during one of the worst economic meltdowns in history...

Bottom line: Tesla's not really a company I would bet against.

~~jeffs_signoff~~