Archive for September, 2009

Investing the Green Way

Thursday, September 17th, 2009
green oil
elementaryfinance asked:


So you’re green?  You live in one of those houses that is dug out of the side of a hill with solar panels everywhere.  You ride a bike in the summer and drive an electric car in the winter.  You grow your own food, pump your own water, and not one drop of oil will ever be in your home.

While you may not be that green, maybe you believe strongly in reducing your carbon footprint or think that green is going to make you some major green.  How do you invest in green?  What is out there for your money?

There aren’t any green bank accounts but there are green mutual funds and stocks*.  First, let’s look at mutual funds:

1.)    Winslow Green Growth Fund (WGGFX)-  All green.  Companies like Chipotle, Green Mountain Coffee Rosters, and First Solar.  (First Solar is one of the most successful solar companys out there right now.)  Although the management fees are high, this mutual fund has a great track record of success.

2.)    New Alternatives Fund (NALFX)- Almost all green.  This fund also has a very good track record and great management.  Companies like Whole Foods and Owens Corning are in this fund.  This is not a “pure play” fund but still quite green.  (A “pure play” would be any company who has no involvement in anything that isn’t green.)

How about if you are a stock person?  Keep in mind that to find pure plays that are green, you have to go mostly small cap.  (A small company)  Right now, small cap stocks are extremely risky so only invest a small amount of your money (around 10%) in these small cap stocks.

1.)    General Electric (GE)- Not very green.  GE is involved in a lot of industries but they are also one of the largest manufacturers in the Wind Turbine industry.  In fact, Boone Pickens has placed an order for 667 wind turbines for his “Pickens Plan”  Not very green but a good company to anchor your portfolio for the long term.

2.)    Clean Energy Fuels (CLNE)-  Almost all green.  This company builds natural gas fueling stations and provides natural gas to cities and individuals on the west coast.  Although depressed in value right now, this will be a leader if natural gas vehicles become more commonplace.  That’s the bet, though and why stocks like this are so risky.

3.)    Quanta Services (PWR)-  About 50% green.  So, you are Boone Pickens and you have 667 wind turbines in the middle of the United States and you are making bookoo amounts of power.  How are you going to get all of your power to the homes and city power grids?  You call Quanta Services.

4.)    First Trust Global Wind Energy (FAN)- Mostly green.  This is not a stock.  It is traded as a stock and the value changes like a stock but it’s actually a collection of stocks all put together called an ETF.  The fund invests in wind energy companies all over the world.  This is a very risky investment but if you’re in it for the long term, you will make some money.

These are only a couple of the many green companies and funds out there.  Beware! Alternative energy is not currently not popular because the price of oil is so low.  Most of these companies are very low in value.  That may be a buying opportunity but they may have lower yet to go.  Be careful.

So your green and need to invest now?  My suggestion is to look in to a mutual fund or two.  Stocks may be too risky right now but President Obama has been public in his support for alternative energy so many investors are beginning to give green another look.  So get to work, start researching and if you aren’t sure, leave a comment.  We’ll help you!

* Please do not take these as recommendations to buy.  These are names to research or ask your financial advisor about.



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Living on Green Energy

Saturday, September 12th, 2009
green oil
Andrew Oke asked:


With today’s rising energy costs, and no relief in sight, many consumers are looking to live “off the grid.” Even with an initial investment that can be steep, the benefits make it much more economical in the long run.

There are small and some not so small ways why off the grid living is a good alternative today. Even though the economical outlay can be steep at first, in the long run it definitely makes more sense for the environment.

Raising your own food is a good way to begin living off the grid. This way, you eat organically while being secure in the knowledge that no dangerous hormones or chemicals are being introduced into your animals.

A cow can provide milk, butter and ultimately beef and leather. Chickens can provide eggs and meat, and flavoring for soup stock. Sheep can provide wool for warmth, and lambs for food; while goats are very good milk producers. Once you have a garden set up, you should never be short of vegetables. Canning and freezing is simple and cost effective for greens all winter long.

People that choose to live off the grid usually do require transportation, but with the availability of hybrid cars; and the research towards possible ethanol fueled cars; wanting to avoid oil products is not as much of a hindrance now. The Amish have the best means of transportation with their horse and buggies. Of course, maintenance on the buggies and upkeep for the horses can be time consuming, but the benefit of no oil product consumption is a great motivator. Horses can also be used for plowing fields, entertainment and also as income if breeding is something one was interested in.

Buying clothes is becoming much more expensive these days. Children as young as five can’t go to school in hand me downs or thrift store clothing because they will be teased. When living off the grid, you don’t need to be stylish, and you probably have no desire to be stylish either. Spinning wool from your sheep, and knitting or weaving clothes and blankets is a great way to save money. Of course, these days, handspun wool can be a great income generator, as well as wool products, such as handknit sweaters and socks. Buying fabric from a local merchant is less expensive than buying clothes in a store, and can be just as nice as long as you know the basics of sewing. For some, sewing may be difficult, but that is an easy hurdle to overcome. There is always someone who would be willing to barter, especially if you are located near anyone else who chooses off the grid living. Sharing your talents with others make self sustainable living much more enjoyable.

Generating heat and energy is always a concern for those who choose to live off the grid. There are several choices available, but the initial investment can be steep. Once the infrastructure is setup, there is no reason to pay your power bill monthly, or to worry that you are going to freeze in the middle of the night during a storm. Having your own power supply means freedom from being at the mercy of repair crews in the middle of the night when the power line has been knocked down, and also is much safer. Power is not vital to survival, and life can be enjoyable without it.

There are two power supply options with readily available instructions online. Solar and wind energy can be very efficient, and have the benefit of being much cleaner than coal, oil or gas, and definitely much safer than nuclear power plants. There are several sources of this information available… just search “off grid living”

The Amish community is a good example of living off the grid. They have even been able to integrate into the community without sacrificing their values or their way of life. If more people were willing and able to follow their lead, our carbon footprint would be lessened, and our dependence on foreign oil would be nonexistent.

If we each made some small progress in living green, there would be more people willing to make that next step to move off the grid, and our world would be a much cleaner home for all.



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The dynamic interrelationship of Coal, Oil, Gas and Carbon

Thursday, September 10th, 2009
green oil
Tyler Green asked:


The dynamic interrelationship of Coal, Oil, Gas and Carbon

(Abhishek Uppal,)

As carbon pricing spreads to new geographies, the interrelationship between coal, oil, gas and carbon becomes more complex. At the simplest level, carbon prices:

diminish demand for fossil fuels at the margin and;

help cleaner energy sources become competitive with fossil fuels.

The correlation between fossil fuel prices and carbon prices will depend on a number of factors - including which fossil fuel is under consideration. There are several scenarios that outline the possible correlation between carbon prices and the prices of coal, oil and gas. In reality, multiple scenarios will exist simultaneously, and therefore overlap and interact. The scenario that dominates will determine the direction of correlation. The key scenarios are:

Supply shocks - these come in two types, both of which imply negatively correlated carbon and fossil fuel prices:

Constraints (peak oil scenario): Fossil fuels are exhaustible resources. Once half of ultimately recoverable crude oil reserves have been depleted, production inevitably will fall, according to traditional peak oil theory. Crude oil production may be near its peak, and natural gas may follow soon after.

Surplus (coal glut scenario): Although other fossil fuels may be more constrained, coal is still plentiful, and the technologies for extracting it are improving. High prices for oil and natural gas may stimulate the availability of coal, and new technologies may in fact make it extremely cheap.

Demand boom (Emerging market growth) - Conservation and efficiency notwithstanding, world energy demand is likely to grow substantially over the next 20-50 years, and much of it likely supplied by fossil fuels, unless clean energy sources can scale up production rapidly. Demand-led scenarios imply positively correlated carbon and fuel prices.

The peak oil scenario (negative correlation for carbon and oil prices) addresses the “other environmental issue” in fossil fuels: their exhaustibility. If it is true that we are facing an energy crisis - increasingly limiting our ability to produce large quantities of fossil fuel on short notice - supply scarcity will drive fossil fuel prices higher. Fossil fuel scarcity and higher prices will create an environment where renewable energy is more competitive as a substitutable energy source and de-carbonization may be self-sustaining.

If energy demand stays constant as supplies dwindle:

Higher oil and gas prices will promote switching to alternatives in transport and electricity markets,

Switching can occur without extremely high carbon prices,

Total oil and gas use will decline, along with emissions from oil and gas.

To the extent that oil and and gas use drives the total demand for carbon, the peak oil scenario implies that oil and gas prices and carbon prices will tend to move in opposite directions.

The coal glut scenario (negative correlation for carbon and coal prices) addresses the possibility that coal may become extremely inexpensive and plentiful as global reserves remain substantial and the technologies for extracting and utilizing it improve in the medium term, bringing more of this resource to market. In this case, better technologies and substantial reserves allow for more coal to be supplied at cheaper prices. Other things equal, the quantity used will increase, driving up demand - and prices - for carbon offsets in a cap-and-trade carbon market. As coal prices collapse, carbon prices move higher to stop a massive shift towards coal use under a cap-and-trade system with a carbon target. Without a cap-and-trade carbon market in this scenario, there would be catastrophic emission consequences.

The emerging market growth scenario (positive correlation possible for carbon and fossil fuel prices) focuses on the recent growth of emerging market energy demand, which, together with industrialized energy use, increases demand for all energy sources. This scenario sees fossil fuel prices rising as well, but, in this case, because of increased global demand. The result is greater fossil fuel use, even at higher prices. With more fossil fuels being used, there is more demand for carbon offsets, and so fossil fuel and carbon prices rise in tandem.

The correlation between carbon and fossil fuel prices depends on which of these scenarios prevails.

The current situation

These scenarios can and probably will happen simultaneously, but the correlation of fuel and carbon prices will depend on which one dominates. Until recently, it looked like the emerging market growth scenario with tight energy markets would be most likely to dominate in the near-term.

However, in the context of market events, as the world moves into a likely recession, energy supplies will come under less pressure in the near-term, and prices are likely to remain lower.

In terms of the carbon price in Europe, the relationship between carbon and energy prices has been a function of the fuel switch between coal and gas leading to a reasonably high correlation between oil prices and carbon prices.

Long-term outlook

In the long-run, the emerging market growth scenario looks most likely to dominate, with peak oil and coal gluts both likely.



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Biodiesel-fuel for the 21st Century

Monday, September 7th, 2009
hydro fuel
Fei Lim asked:


In this new age where fuel is the most precious commodity available, it is time that mankind turned to a more efficient, safer, cleaner, renewable fuel for use in our massively transportation dependent society. The answer to a century of wars over oil and the horrendous aftermath thereof are simply, in one word - biodiesel. Biodiesel has been around for over a century, but only recently has the world awakened to a need for fuels at any cost that will not destroy our already fragile ecosystem, and you will soon know why the whole world should be excited.

Biodiesel was first synthesized back in 1893 before the first diesel engine was even developed. Biodiesel is essentially oil of any type-be it animal fat or vegetable oil that has been reacted with an alcohol in a process called transesterification. The chemical name of the results of this reaction is mono-alkyl ester or biodiesel, and glycerol-common glycerin. Biodiesel can be used as an alternative to petrodiesel in more applications than you may think.

Biodiesel has some very interesting properties. While not as energy dense as common petroleum diesel, it is a much cleaner fuel with lower sulfur, and it burns cleaner leaving the atmosphere less harmed. Biodiesel even cleans engines which have been run on petroleum diesel from the inside, dissolving deposits of gunk and particulates that originated in typical petroleum fuel. Biodiesel’s main lure is the fact that in theory we could supply the world’s energy needs from one safe clean alternative fuel that is 100% renewable.

As for applications, biodiesel can be utilized in most locomotives that you are already aware of, with little or no changes to the engine. This means that if you have a vehicle that runs presently on diesel-be it a sport utility vehicle, station wagon, car, or tractor trailer truck-it can run on biodiesel with only one step. That step is filling the tank! This is the primary reason why biodiesel could revolutionize the fuel industry. With biodiesel, there is no need to upgrade our present fleets of trucks, cars, trains, vans, and boats that run on diesel into prohibitively expensive solar powered vehicles; we can simply pull them into a gas station that offers biodiesel and fuel up. It is true that any engine built for diesel can run on biodiesel, the only issue that could come up is with engines that were built before 1992. Many of these engines have rubber parts that would slowly be dissolved by biodiesel. But the modifications required can be done in a few minutes by any mechanic. Also, other than transportation most diesel generators as well as heaters can be run on biodiesel without modifications. This means that we can generate electricity using this exciting new renewable fuel. There was even a test flight in early 2008 of a jumbo jet run only on biodiesel. The potential of biodiesel to revolutionize our energy industry is enormous, not to mention the economic opportunities for farming nations that depend on the agricultural industry to survive. Many of these nations have begun to plant many acres of oil rich crops that are then sold to make biodiesel all over the world. The real opportunity for biodiesel to save our energy dependent society lies in algae. Algae has proven to be capable of a higher yield per acre of biodiesel convertible oil than any other plant. With time and effective engineering of an efficient algae farming method, we will be able to utilize the solar energy more efficiently than ever, and we will easily be able to answer the worlds energy needs with biodiesel.

You know a bit more than you did about biodiesel. Biodiesel may not be the holy grail of energy sources, but it comes pretty close in these times of oil wars and a rapidly depleted ozone layer. Perhaps you should look into biodiesel as your personal alternative fuel today. The more informed we are as a society, the brighter the future may be for our children. Biodiesel is not the fuel of tomorrow, I dare to say it is the fuel of today. Cleaner, renewable, convenient, and available; biodiesel may be a turning point in the world’s energy resources.



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Important Facts You Need To Know About “GREEN” Oil Changes

Tuesday, September 1st, 2009
green oil
Kenny Jones asked:


Everyone knows that it is important to keep oil in your car, and get oil changes. What many people don’t realize, is just how important it is that you routinely change the oil in your vehicle, and what impact that has on our environment.

Most car owners have heard the phrase “change your oil every three thousand miles”. But a lot of drivers ignore these pearls of wisdom, and are stretching mileage to six thousand miles without harming their vehicle and conserving resources at the same time.

A superior synthetic oil blend only uses up to HALF the natural resources needed for new oil production. By stretching out service intervals by double the time period from three thousand to six thousand miles, we again reduce the use of natural resources. Adding an oil system conditioner to your oil ensures longer oil life with extended and improved lubricating ability, as well as increased engine protection against wear and contaminants.

In addition to reducing the amounts of natural oil used, this also reduces the amont of used waste oil for disposal by HALF! Much of this waste oil can be burned in a waste oil heater, further reducing our environmental impact on the planet while conserving natural resources.

One of the main reasons that it is so important to get an oil change regularly is because it helps to reduce the amount of wear that is placed on your engine. The oil helps to lubricate engine parts and keep your vehicle running well. Over time however, the oil breaks down and looses it’s viscosity. When this happens, the oil does not lubricate engine parts as well, and your engine becomes more at risk for wear and tear. By routinely changing your oil, you keep the oil that is circulation through your engine clean, which better helps to protect engine parts. This is very important because it will reduce the overall maintenance costs that you will have to pay over time for your vehicle.

Routine oil changes also help to improve gas mileage and reduce the amount of emissions that your car puts out. When a car receives routine oil changes, it runs more smoothly which results in it burning less fuel. With the rising cost of gas these days, this makes it even more important to ensure that you routinely change your oil as recommended by your mechanic. Additionally, when your vehicle is running more smoothly and at optimum performance, it will emit less pollution which is better for environment.

If you want your vehicle to run properly, have it checked over by a mechanic and get them to recommend how often you should bring your car in for an oil change. While there are many other things you will need to do to keep your car running smoothly, routine oil changes is definitely at the top of the list.

Help save our planet, and save you money, ask your service professional for a GREEN oil service today!



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Clean Bilges for a Green Earth

Tuesday, September 1st, 2009
green oil
oil asked:


Causes of oil pollution are many. They can range from minor spills from recreational boats to serious oil spills from commercial vessels. Whatever the cause, it leads to serious marine pollution.

Large oil spills come to notice very quickly. Marine pollution authorities therefore respond quickly to clean them up. But minor oil spills that result from pumping oily bilge water overboard or from careless refueling go unnoticed even though they are a major cause of marine pollution, which harms the marine environment.

Several steps have been taken to prevent marine pollution, including laws such as the Federal Water Pollution Control Act of 1972 and the Oil Pollution Act of 1990. According to these acts, the discharge of any kind of oil in the navigable water of the United States that causes a film, sheen, discoloration, sludge, or emulsion on or beneath the surface of water is strictly prohibited and can result in stiff civic penalties.

To avoid these penalties and to prevent further oil pollution here are some preventive measures that will help in keeping the discharged bilge water clean.

• The engine of the boat should be maintained properly to avoid fuel or oil leaks. Oil filters should also be changed often.

• Floating oil, if any, should be soaked up with a sorbent material before pumping the bilge. An absorbent pad or a drip tray should also be kept under the engine.

• During bilge cleaning do not mix detergents with oily bilge water as they can prove even more toxic than the oil. Instead, use a biodegradable bilge cleaner like Oil Gone Easy Marine S-200. This bilge cleaner is environmentally friendly and will not cause marine pollution.

Following these simple preventive measures will not only result in clean bilges but will also result in a green earth.



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