| You are receiving this email because you signed up to receive our free e-letter, or you purchased a product or service from its publisher, The Oxford Club. If you are having trouble viewing this email, click here to view it in your browser. |
| Brought to you by The Oxford Club | Monday, May 30, 2016 |
Energy Economics: "The Vikings Got It Right"
 Reykjavík, Iceland - We were on our way to Snæfellsjökull - the volcano that inspired Jules Verne's Journey to the Center of the Earth - when it hit me.
I immediately understood why very specific businesses are flocking to Iceland.
Steep, snowy peaks surrounded us. The land was rough and seemingly untouched. Volcanic rock made the countryside look like a NASA photo of Mars.
No wonder Verne chose this as Otto Lidenbrock's portal to another world...
We felt entirely isolated. And it wasn't just an illusion. The closest town, Hellnar, was 11 kilometers away. It had a population of nine people. (We met three of them when we stopped at the Hellnar café.)
According to the locals, we were a couple of months early. It was bitter cold and windy. They warned us that the weather could change in an instant.
Like most tourists, we ignored them.
Within an hour, snow made the mountain road impassible and forced us to turn around.
"Money Tech" Breakthrough Could Fast-Forward U.S. Economy by 25,823%
A new technology is about to transform America's money supply - and our daily lives. Over the next 11-17 months, it will accelerate commercial transactions by up to 25,823%. In other words, a purchase that might normally take 7 minutes will take 2.09 seconds. A stock trade that now takes 20 minutes will take 4.6 seconds. Multiply the effects by trillions of transactions each year, and the impact could prove historic.
The time to get in on this technology is now. Early investors could pocket as much as 229% or more, quickly. Details here. |
As we drove, we passed a hydropower plant. There was no smokestack, no sketchy runoff pond, no burnt rubber smell and no smog.
Then it hit me: "The Vikings got it right."
It is no coincidence that Iceland looks the same as it did 150 years ago when Verne published his book.
Iceland is about the size of Kentucky. Its total population is smaller than that of Tampa, Florida. And yet it's leaps and bounds ahead of the rest of the world when it comes to sustainability.
Almost all of Iceland's electricity comes from renewable sources. Approximately 75% comes from hydropower and 25% comes from geothermal power.
As a result, Iceland has the first renewable energy-fueled economy in the world. In fact, Iceland markets its resources to energy-intensive industries. That's why one of the largest industries in Iceland is aluminum smelting.
Iceland has three smelters. Together they consume more than 75% of the country's total electricity. Due to the huge amount of electricity smelting requires and the immense energy potential the country's geography provides, Iceland is an ideal location for the industry. Aluminum makes up roughly one-seventh of the country's economic output.
The country even uses geothermal heat to keep key roads and sidewalks free of snow and ice. That means no salt... no plows... and a well-preserved infrastructure.
Clearly, Iceland is playing to its assets. And it's working... Forbes ranks Iceland No. 13 on its list of best countries for business. The U.S. is No. 22.
Admittedly, the U.S. has a long way to go before it's as "green" as Iceland. Last year, it generated a little more than 13% of its electricity from renewables.
That said, the U.S. produces more geothermal and biomass energy than any other country. It has the second-largest wind industry, third-largest hydropower industry and fifth-largest solar industry.
And America has started to take advantage of its renewable assets as well.
While aluminum smelting requires a ton of energy, so does operating a Fortune 500 company.
That's why more than 60% of the largest businesses in the U.S. have set goals to increase their use of renewable energy.
American staples, such as Coca-Cola Enterprises, Google, Goldman Sachs, Microsoft, Nike, Wal-Mart and Johnson & Johnson, are part of a global initiative called RE100. The initiative encourages companies to set public goals to go 100% renewable by a certain date.
Wal-Mart consumes 4.2 million tons of coal a year. That means it uses 0.5% of all coal-produced electricity in the U.S.
By 2020, Wal-Mart aims to produce or procure 7,000 gigawatt-hours of renewable energy. While that will account for only 40% of Wal-Mart's total energy needs, it's a huge step in the right direction.
Sure, it may take a while for the U.S. to entirely switch over to renewables. But it all starts with big business.
As more companies turn to renewable energy, the companies that help produce that energy will reap the benefits. And this tip from the Vikings will result in hearty profits for alternative energy investors.
Good investing,
Rachel |
|
|
I talk to a lot of gold miners, explorers and developers. And there has been a real shift in mood. Here are three interviews with junior gold miners that are on the launch pad. Read On... |
|
|
What has really helped to spark and sustain the rally in gold miners is a fundamental overhaul of their businesses. Oil and gas companies could stand to pay attention. Read On... |
|
|
The newest energy storage system in development uses technology that's been around since the late 19th century. Read On... |
|
|
|
The Oxford Club is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Members should be aware that although our track record is highly rated by an independent analysis and has been legally reviewed, investment markets have inherent risks and there can be no guarantee of future profits. The stated returns may also include option trades. 
No comments:
Post a Comment
Keep a civil tongue.