Natural gas for Buses and Trucks!

15-Apr-2011 | Reggie | Green Investing Market Strategies Oil & Gas

Encana Corp is one of the biggest explorers and producers of natural gas out there.  Last year Encana spun off their oil production into another company, Cenovus making Encana basically a pure gas play.  As a result their fate has been tied very closely to the price of natural gas something that has been evident thanks to ECA’s stock price recently.  Rather than sit around with their wells shut in waiting for prices to rebound before turning the taps back on, Encana is taking action to change their destiny.

One way that Encana can improve their sales is by increasing demand.  Yes, its that easy.  Encana has been a big proponent of coverting vehicles to natural gas and putting the infrastructure in place to make that possible.  With gasoline prices back up over a $1.00 a liter and over $4.00 a gallon in the United States Encana’s plan is getting a very warm reception.  There is currently a huge abundance in natural gas making this a very logical step forward for the industry.  Environmentalists should be happy as well thanks to natural gas being a relatively clean burning fuel.

 

So far commercial trucks and buses are the main target for the conversion and have to potential to increase the demand for natural gas by a substantial amount.  I absolutely love how Encana is putting their future in their own hands and not relying on the whims of the market.  If this catches on, which there isn’t really any reason it shouldn’t, it will change the market for natural gas and gasoline forever.

 

For more information check out the Globe and Mail’s article here

 

 

 

This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.

Retire First is a member of the Canadian Investors Protection Fund.

Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.

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Big bet on the Electric Car

14-Jan-2011 | Reggie | Commodities Green Investing

Lithium has rapidly replaced Alkaline as a key ingredient in the creation of long life batteries.  Lithium batteries are now used in almost all portable devices including cell phones, cameras, and laptops.  The next logical step is to use the increase in power and life of Lithium batteries in electric cars.

Following this line of logic one would see a pretty big opportunity to invest in lithium with the possibility of its use being widely expanded via electric vehicles.  Over the past couple of days there has been 2 major financings for Canadian lithium miners.  Canada Lithium (CLQ.T) is looking to raise $200 million for the development of their mine in Quebec where they hope to be able to produce 20,000 tonnes initially.  Another miner, Talison (TLH.T) is looking to raise $60 million in order to finance the expansion of their mine in Western Australia where they are looking to increase their capacity to 62,000 tonnes.

That’s 2 companies right there with the capacity to meet nearly 80% of current lithium demand.  Never mind other producers and potential producers.  Investing in lithium right now is basically making a bet that there will be a major shift towards battery powered vehicles which is probably still a pretty big gamble at this time thanks to the huge amounts of new oil & gas being discovered and the peak oil story basically falling apart for the time being.  Cheap oil and gas prices would put a serious dent in the adoption of electric vehicles especially since the range of many of these vehicles is still so relatively short.  There is also some pretty serious concerns coming from environmentalists on how lithium is mined thanks to the toxic waste produced from the extraction of the compound.

The huge amount of momentum and excitement behind lithium is making for some great potential return.  However, it would be a good time to exercise caution because of the poor outlook for supply and demand of lithium.

This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.

Retire First is a member of the Canadian Investors Protection Fund.

Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.

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BP Gulf Disaster’s Impact

03-May-2010 | Reggie | Commodities Green Investing Oil & Gas

With no sign of easing, the well gushing crude oil into the Gulf of Mexico is well on its way to being one of the worst ecological disasters ever caused by man.  The fallout from the broken well is going to be absolutely huge.  Countless species in an already fragile ecosystem will be under severe stress as they try and cope.  Fishermen, Oyster farmers, and tourism operators will see their businesses get decimated.  As a small consolation, British Petroleum is accepting responsibility and agreeing pay for the cost of the clean up.  This disaster could mark a dramatic shift to how off-shore drilling is permitted and viewed.

Nothing gets people as upset and seeing helpless animals covered in oil looking sick and destitute.  When pictures of ducks covered in oil emerged in the aftermath of the Exxon Valdez spill, the public was outraged.  A lot of hate and anger was targeted towards Exxon in the form of multi-billion dollar lawsuits and unfortunately for the Oil company, they get about as much sympathy to their plight as Goldman Sachs is getting present day.  Many still resent Exxon to this day for the destruction caused to the pristine Alaskan environment.

The United States was on the verge of opening up more coastline to off shore drilling along the Atlantic coast.  Also, Oil companies have been lobbying for years to ease regulations allowing for drilling in the Arctic Ocean.  I suspect this spill will put a significant damper in those plans.  Companies already or wishing to drill off shore could face a severe environment tax or insurance premium for doing so.

All in all, the impact of this latest spill could cause a significant shift in how the Oil sands is viewed by the general public.  Although the Oil Sands is no choir boy, the damage to the environment is known and without surprise.  For open pit mines, large tracts of marsh and forest must be cleared but the grass and trees will grow back with the operation is completed.  Tailing ponds are created as water is diverted from the Athabasca River – current usage is estimated at 0.4% of the river.  Last year when bad weather prevented air cannons designed to scare away wildlife from the pond malfunctioned – a couple hundred ducks past away.  Fortunately, this has been an isolated incident.

Until the world’s need for Oil is alleviated by some sort of new technology, drilling for Oil remains a necessary evil.  Companies and governments will learn from their mistakes and any ecological disaster will be met with intense public dissatisfaction.  Hopefully this one will be an opportunity to re-evaluate the Oil sands impact on the environment and appreciate it for what it isn’t.

This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.

Retire First is a member of the Canadian Investors Protection Fund.

Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.

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Obama says Yes to Nuclear Energy

16-Feb-2010 | Reggie | Commodities Green Investing Market Outlook Oil & Gas Technology

Today US President Barack Obama announced an $8.3 billion loan guarantee to help Southern Co. build a nuclear power plant in Georgia.  This loan signifies the US taking a positive stance on nuclear power as a reliable and clean source of energy.  Since the accident that occurred in Pennsylvania in 1979 at Three Mile Island, the US has not licensed another nuclear power plant to be built.  That, along with the Chernobyl disaster, and the difficulty in storing and disposing of nuclear waste has created quite a controversy over the topic.

The creation of additional nuclear power in the United States has quite a few pros to it.  For one, the construction, maintenance, and operation of the plant should result in thousands of jobs for residents in the Georgia area.  It also means that the US will be investing in reliable home made power with a small to non-existent carbon footprint.  The United States has been making reliance on foreign states for it’s energy needs a priority for many years.  Going back to nuclear power will be a big step in the right direction for sustainable and clean energy.

Although this is only 1 plant, the announcement has several future implications for the uranium, and coal sectors.  As technology super powers resume work to develop nuclear power into a safe and consistent source of energy, we can hopefully look forward to seeing nuclear power take the place of the smog and particulate inducing coal plants that dirty up much of the country side.

This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.

Retire First is a member of the Canadian Investors Protection Fund.

Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.

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Mergers Galore

10-Dec-2009 | Reggie | Asia

After finally getting the go-ahead from antitrust authorities, Sanyo Electric Co and Panasonic Corp got the go ahead to merge.  This will create the second biggest electronics company in Japan, only behind Hitachi, with sales over $9.5 trillion yen.  Although the two companies are well known for their home appliances and other gadgets, the new entity plans to go after the much more lucrative battery market.  Its estimated that between Sanyo and Panasonic they will have a combined 30% of the worlds market share for batteries.  Based on the outlook against greenhouse gases and for electric vehicles, things should be shaping up nicely for the battery market.

Both Sanyo and Panasonic have been struggling recently thanks to price deflation in Japan, rising costs, and lower demand from the recession.  The merger should help to reduce costs from R&D and management expenses.

The merger seems to be part of a larger trend facing many businesses today as they struggle to recover from the recession and slower sales.  Rumours are once again circling the idea of a merger between US cellular providers, T-Mobile and Sprint.  Both companies have struggled because of their older and smaller networks compared to heavyweight rival AT&T.  Another possible merger up for discussion among anti-trust watchdogs is that of Comcast and NBC Universal.  Car manufacturers Volkswagen an Suzuki have also been in talks to merge.  Notable mergers of the recent past also include Satellite radio companies, Sirius and XM, Canadian Oil giants, and Suncor and Petro-Canada.  Consolidation among businesses definitely seems to be picking up as companies look for a way to prosper during a difficult time.

This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.

Retire First is a member of the Canadian Investors Protection Fund.

Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.

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