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Investing for Peak Oil Surviving Peak Oil financially is a problem we will all confront sooner or later.

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Old 12-25-2010, 11:00 PM   #1
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Default PO ETFs

You might consider funds that specialise in PO outcomes .

Not being a resident of North America I have no interest in listing
such funds in your area so I will leave that to others .

Example .....
The Powershares Global Progressive Transportation Portfolio (PTRP)
is an Exchange Traded Fund (ETF) that invests in companies that
"the Index provider believes stand to benefit substantially from a societal
transition toward using cleaner, less costly and more efficient means of

Needless to say I have no specific knowledge of this ETF ,
no financial interest in it and derive no beneficial interest from promoting it .

To my mind it is perhaps a little early to invest in such funds
given that the unfolding depression may drive down stock
prices and possibly cause damaging bankruptcies of companies within
the portfolio . Additionally there is the strong possibility of an oil
price plateau of unknown duration .

In short if you think such ETFs are a good idea it may be better to
wait a year or two .
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Last edited by Ross; 12-25-2010 at 11:16 PM.
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Old 12-26-2010, 12:38 AM   #2
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Claymore Canadian Oil Sands Sector ETF.

For those not up to speed, the 'oil sands' are huge surface and underground bitumen deposits in Alberta, Canada, that have been developed relatively recently and are still subject to a great deal of expansion.

The exploitation of these resources uses both surface mining, and, increasingly, in-situ development using enhanced oil recovery techniques such as steam assisted gravity drainage. The oil sands are expensive to develop, and as such have only fairly recently started hitting it big as the rising price of oil has exceeded the marginal cost of getting the oil out.

Environmental impact is a considerable concern, particularly for the tailings ponds of the surface mining. This is increasingly a focus of the industry- improving their environmental impact. A couple of the companies are leaders in the in-situ development that's not nearly as damaging.

There are a number of major players, covered in this ETF, as well as a whole host of smaller exploration and development companies. Note that the ETF covers mainly id and large cap companies.

As the cost of oil increases the profit margin of the oil sands will increase proportionately faster than conventional recovery that requires lower prices to be profitable. There's also an abundance of proven reserves.

The risks include a collapse in the price of oil - not a long term factor if you're a PO believer - and the risk of increased costs due to tighter environmental regulation. Under our current conservative government, that's not mu of a concern, and our opposition parties aren't looking good right now. Nor is it likely that th eLiberals would risk hurting the oil sands if they get elected, as this is a key part of our economy out in the west.

Due diligence and all that, but the Canadian energy sector in general, and the oil sands in particular offer a lot of interesting opportunities. This sector makes up a substantial portion of my portfolio right now.
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