With oil about to cross the $100 mark, you need to quit worrying about how much it’s going to cost to heat your home or fill that SUV and start thinking about how to adjust to the new reality. The paradigm is shifting and with it comes opportunity. Lifestyle changes are part of how to deal with the rapidly escalating costs of energy but, at the same time, some pretty exciting opportunities for profit are presenting themselves. Let’s have a look into the crystal ball and see what we can see.
Transportation -
With gas over $3 and certain to climb further, we are slowly catching up on European pricing models. In the EU, gas is approaching and in some countries reached $8 per gallon. It’s had been around $5 for years and we only have to look at the roads there to get a glimpse of what is to come. Small cars, very small cars with very small engines are the norm. People walk and ride bikes and take mass transit a lot more than here. The V8 engine is about to become a relic along with big cars like SUV’s. We can only take so much punishment and the next few years will see a significant shift in automotive trends.
Along with smaller cars, hybrids will explode on the market place. Hybrids have struggled to gain traction but 2008 is when they will catch their footing and really make a move. As a result, the fuel cell and lithium battery industries will enjoy greater support than ever and new technologies will be coming forth as the hybrid and electric vehicle markets begin to rapidly evolve and grow.
Our suggestion: It’s time to shift your thinking about your personal approach to mobility. Lead feet, size and horsepower will give way to pure function and economy. The sooner you adjust to this new way of thinking, the happier you are going to be.
Homes and buildings – We have already seen the renewed interest in alternative forms of energy. 2008 is going to see more than a renewed interest in it, we are going to see a veritable revival meeting complete with environmental evangelists preaching the benefits of everything from nuclear energy to solar, wind and geothermal energy. Technology here too is about to evolve rapidly. We look for significant improvements in geothermal heat pumps and especially look forward to the advent of solar shingles or roofing tiles that look stylish but produce electricity. When buildings all start producing energy, our dependence on foreign oil will diminish significantly.
Investing – There are going to be a lot of interesting investment opportunities coming forth in the next couple of years, many of which will be focused on alternative energy and hybrid technologies. These stocks will become the darlings of Wall Street and some will make people who are positioned early, an awful lot of money. Here are the technologies we will be looking for in 2008.
Hybrid and electric technologies and vehicles.
Lithium battery technologies
Fuel Cell technologies
Solar technologies
Geothermal technologies and advanced HVAC technologies
Biodiesel
Of course, along with the evangelists will come the cons so keep a watchful eye out for the companies with ideas but no actual product and focus instead on companies that have been in business for a few years and are well positioned to take advantage of the paradigm shift.
2008 will be a year of change thanks to oil. The best advice we can give you is let go of cheap energy and the things it allows and embrace the new world that is about to greet you while looking for the opportunities this new world will bless you with.
Happy Thanksgiving.
