The buzz is omnipresent. Without fail, renewable alternative energy is in the news and at the forefront of many people's minds on a daily basis. In the past few weeks, the Aspen Skiing Co. revealed a 150-foot tower with four anemometers is in route to Snowmass as part of a feasibility study for a wind energy project on top of the mountain. California utility company, PG&E corp., announced a huge 800-megawatt solar energy contract. Locals had the opportunity to hear oil tycoon T. Boone Pickens explain "Pickens Plan" at the Paepke Auditorium, and many attended a discussion with Ted Turner, T. Boone's partner on the project, during the American Renewable Energy Day in Aspen. Also, Denver International Airport completed and dedicated a 7.5 acre, 2 megawatt solar array, capable of supplying the energy needs for 1,800 homes annually.
The naysayers will tell you that the alternative energy buzz and the stocks of these companies will fade if oil prices drop. There will be some volatility in the sector as oil prices fluctuate; however, this time around alternative energy is here to stay. As oil reserves dwindle, exploration and production companies will face astronomical costs to extract ever smaller reserves from more remote locations.
Meanwhile, world energy consumption is increasing. The world needs to use alternative energy to supplement oil production in order to avert a major energy crisis. Furthermore, concern about pollution and global warming has created additional demand for renewable clean energy. With alternatives becoming a necessity and accounting for a fraction of current energy production, there will be long-term sustainable growth and excellent investment opportunities in the sector. Please call to discuss alternative energy investments and how they may fit in a diversified investment portfolio.
Chris O'Connor is a Financial Advisor with Raymond James Financial Services, Inc. member FINRA/SIPC, 617 West Main Street, Aspen, CO. For specific recommendations and advice to meet your unique individual needs, please call (970) 544 9555.
