No-Brainer

Agora CEO: "This made me and 50+ employees millionaires" Agora Inc., started more than 35 years ago in a Baltimore row house, has become one of the largest publishing firms in the world. And now, for the first time ever in a brand-new book, Founder Bill Bonner explains his radical approach to business, wealth, money, family, management, relationships, and more. If you want to be a better investor, manager, parent, spouse, or businessman, this book is a must read, full of great ideas you'll find nowhere else. See a full review and get your copy now... Friday, November 14, 2014 | Issue #2417 Today's No-Brainer Energy Investment David Fessler, Energy and Infrastructure Strategist, The Oxford Club Recently, the International Energy Agency (IEA) published a report on total global investments in one specific form of "energy" in 2012. It pegged investment in this form of energy at between $310 billion and $360 billion. That was larger than investments in renewable-resourced electricity, or in oil-, coal- and gas-fired power generation that year. It was about half of the investments made in upstream oil and gas drilling. So what was it? It was energy efficiency. While not a true form of supply-side energy, energy efficiency is the world's "first fuel," as the IEA likes to call it. And it really is. Energy-efficiency investments are distributed across many different countries and energy users. Major industries, the transport sector, domestic appliances and buildings are all big spenders on energy efficiency. So how big are the savings from energy efficiency? The answer is absolutely staggering. Shocking: Save $150 Every Month - The Easy Way. There's an easy way to save $150 - or more - every month. You don't have to work from home... It doesn't involve one "weird" trick or gimmick. All you have to do is get rid of something you probably hate anyway. But there's more... You can actually make tens of thousands of dollars from this opportunity. Click here for the full details. The savings from just 11 of IEA's 18 member countries (Australia, Denmark, Finland, France, Germany, Italy, Japan, the Netherlands, Sweden, the U.K. and the U.S.) in 2011 was equal to 1.34 billion tons of oil-equivalent. A Little Perspective Let me put that into perspective. First, know that 1.34 billion tons of oil is equal to 9.82 billion barrels. That's 26.9 million barrels of oil per day. That's more than one-quarter of the world's present daily consumption. Put another way, if no one invested in energy efficiency in 2011, demand for energy (in oil-equivalent terms) would have grown that year by 25%. "Avoided energy use" is the term used to describe the savings. In 2011, avoided energy use was larger than the annual supply of oil (1.2 billion tons of oil-equivalent) natural gas (509 million tons of oil-equivalent) and electricity (552 million tons of oil-equivalent). The savings were greater than the total final consumption (TFC) of the European Union. They were 87% of the TFC in the U.S. and 80% of the TFC in China for that year. In monetary terms, the savings in 2011 amounted to $743 billion. According to the IEA, that number is based on an average global price of energy at $13.96 per gigajoule. In the transportation sector, vehicle fuel economy is now more the rule than the exception. Standards dictating fuel efficiency now cover about 70% of the world's light-duty vehicle (LDV) markets. Over the next five years, many of these standards will drive even more energy-efficient vehicles. The IEA estimates $80 billion will be invested in new standards annually through the end of the decade. Estimated annual savings for motorists? Between $40 billion and $190 billion. In developing countries, vehicle efficiency standards will drive even more savings. The IEA expects passenger travel to increase 90% in developing countries from 2011 through 2020. The Big Money However, the residential sector is where energy efficiency is really racking up the savings. Improvements in water heating, space heating, appliances and lighting are all big drivers of energy efficiency in residential buildings. Residential energy-efficiency savings have more than countered the effects of growing populations and the preference for larger homes. Net residential energy use in IEA countries was 14% lower as a result of energy efficiency. Without the electrical power industry, our economy would come to a grinding halt. No other industries could function without it. Developing economies are rapidly expanding generation capacity to meet increasing demand. Right now there are more than 25,000 active power projects under construction with a total combined value of $5.82 trillion. In developed countries, aging infrastructure, ever-tightening emissions regulations and renewable energy are driving vast amounts of capital spending. Much of that money is headed toward energy-efficient transformers, lighting and renewable energy sources. Energy efficiency is the hidden reason behind lower global energy demand. Without it, the demand for global energy would be rising far faster than our ability to supply it. Most energy investors focus on oil and natural gas. However, companies involved in producing energy-efficient products are part of the largest subsector of the energy market. Make sure you have an energy-efficiency company or two in your energy portfolio. Good investing, Dave Fessler P.S. There's so much changing in the energy business, there's no way to cover it all here. That's why, on November 20, my colleague Sean Brodrick will be talking at length with The Oxford Club's Dave Baumann about the hottest plays in the energy sector via a special online event hosted by The Oxford Club. Click here for the details. Click here to post a comment on InvestmentU.com Recovery Crisis Looming Investors are optimistic again... stocks are soaring... even the real estate market, once left for dead, has finally started to rebound. But just over the horizon lies an event that will disrupt this rosy equation. Like most "black swans," only a few brave investors will see it coming and prepare in time. Get the full details here. Reader Favorites From Investment U Investment U Explains: Who Wins With Cheap Oil? by Ryan Fitzwater Friday, November 14, 2014 Why has the price of oil been dropping so much? I tapped our in-house Energy and Infrastructure Strategist Dave Fessler and Resource Strategist Sean Brodrick to get the inside scoop on oil's plummeting prices. Read On... Energy's Three Wild Cards by Sean Brodrick Thursday, November 13, 2014 Things are moving quickly in the energy business. It's like a fast-paced game of poker where the dealer keeps calling different wild cards. Today, I'm going to tell you about three wild cards you should be aware of. And I'll also tell you how you can end up holding a winning hand. Read On... Investment U Plus by Bob Keaveney Friday, November 14, 2014 Don't think "energy efficiency" is an exciting way to make money? Readers of Investment U's premium edition are learning today about one company that's charged 700% and another that's charged 330% during the same time period by innovating in the energy business. Still yawning? Click here to learn how to join them. You are receiving this email because you subscribed to Investment U. To unsubscribe from Investment U or to manage your account, click here To cancel by mail or for any other subscription issues, write us at: Investment U Attn: Member Services 105 West Monument Street Baltimore, MD 21201 Keep the emails you value from falling into your spam folder. Whitelist Investment U. Question? Comment? Need help? Contact us here. 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