Energy E & P To Increase 6% This Year -- Barclays; Investing In Renewable Energy -- SRE

Energy E & P to rise 6% this year -- Barclays.

There is potential for higher capital deployment in the United States due to geopolitical risks in other oil-producing countries, particularly Iraq, Barclays said. "I think the first place they are going to put that money into is North America," Barclays analyst James West told reporters on a conference call.

***********************************  Add China To the Arctic List of Players

Add China to the list that wants access to oil and gas in the Arctic. Link here. Meanwhile, the US, under this administration, is pretty much sitting this one out, also. Except in passing, in the very last paragraph of the linked story, the United States was not even mentioned.

The Arctic Council agreed in May last year to admit emerging powers China and India as observers, reflecting growing global interest in the trade and energy potential of the planet's Far North.

The organisation, which coordinates Arctic policy, is gaining influence as sea ice thaws to open up trade routes and intensify competition for oil and gas - estimated at 15 percent and 30 percent respectively of undiscovered reserves.

The Defence Policy Research Centre of the Academy of Military Sciences of the People's Liberation Army singled out the Arctic as one of the chapters of an annual strategic assessment.

"The Arctic region has rich oil and gas resources and quick and convenient shipping conditions, which has important meaning for ensuring the sustained development of China's economy," the centre said in its report, according to excerpts published by the official China News Service.

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Wow, this is a little nugget for investors.

SRE surged today.

No SRE news today. But there was some SRE news earlier in the week I was going to post and then forgot. Zack's is reporting:

SRE announced that its Mexican unit Infraestructura Energetica Nova SAB (IEnova) has received a loan worth $270 million. The company will utilize the fund for the completion of the first phase of its wind energy generation project called Energia Sierra Juarez. 

I posted more of the story at an earlier post. 

There are at least three ways to make money on renewable energy.

• tax credits to offset other profitable making ventures (Warren Buffett does this)
• get the contracts to build out the renewable energy infrastructure (like SRE is doing)
• invest in publicly traded companies that are making money on renewable energy (BRK, SRE)

However, sometimes the most important "asset" in renewable energy is something that cannot be measured: building political and business relationships.

After years of following SRE and then the past years blogging to include SRE, it certainly appears that SRE is doing some very, very interesting things across the "southern tier," stretching from Tijuana to Louisiana.

On another note: right now it appears the only way to make money "directly" on renewable energy is through tax credits (see Warren Buffett above). An industry dependent on tax credits is not a viable industry. Just my two cents worth.