{"id":29913,"date":"2012-05-29T00:08:37","date_gmt":"2012-05-29T04:08:37","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/2012\/05\/europes-energy-resource-puzzle\/"},"modified":"2012-05-29T00:08:37","modified_gmt":"2012-05-29T04:08:37","slug":"europes-energy-resource-puzzle","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2012\/05\/29\/europes-energy-resource-puzzle\/","title":{"rendered":"Europe\u2019s Energy Resource Puzzle"},"content":{"rendered":"

By MoneyMorning.com.au<\/a><\/strong><\/p>\n

The big theme in the April issue of Australian Small-Cap Investigator<\/a><\/em> was Europe. To be precise, that if Europe<\/strong> is ever to recover economically, it must develop its own energy resources<\/strong>.<\/p>\n

<\/span>
\nTake the following quote from a September 2011 report from the European Union:<\/p>\n

‘More than half of the EU-27′s energy comes from countries outside the EU – and this proportion is rising. Much of this energy comes from Russia, whose disputes with transit countries have threatened to disrupt supplies in recent years – for example, between 6 and 20 January 2009, gas flows from Russia<\/a> via Ukraine<\/a> were interrupted’.<\/em> Europe’s energy position is dire.<\/p>\n

And as the EU points out, it’s getting worse.<\/p>\n

But even we didn’t fully understand how dire it is for Europe until the other week. That’s when the scale of the problem hit.<\/p>\n

You may have seen in Money Morning<\/em> that my old pal and Diggers & Drillers<\/a><\/em> editor, Dr. Alex Cowie, spent three days at the Australian Petroleum Producer and Explorer Association (APPEA<\/a>) conference in Adelaide.<\/p>\n

He was moving and shaking it with some of the biggest names in the Australian energy industry<\/a>, and he came back with a lot of news to share with his readers. But there was one item in particular that caught our eye.<\/p>\n

It was a chart from BHP Billiton Petroleum’s presentation. When we saw it our chin nearly hit the floor.<\/p>\n

Here it is:<\/p>\n

\"natural<\/div>\n

<\/p>\n

Source: Wood Mackenzie, BHP Billiton<\/div>\n

<\/em>
\nWhat strikes you about this chart?<\/p>\n

Well, if you read along the line of the world’s largest natural gas reserves<\/a>, you’ll see only one European nation – Norway.<\/p>\n

Europe. A continent with a population larger than the US, but with barely a fraction of the US’s proven natural gas resources<\/a>. The gas is there, it just needs the economic environment for companies to exploit it.<\/p>\n

The fact is, if Europe wants to remain a developed continent, its energy position<\/a> just isn’t sustainable.<\/p>\n

In time, Europe will need to ditch the folly of green and renewable energy sources<\/a>, and embrace the only energy source that can meet Europe’s long-term energy needs – natural gas<\/a>.<\/p>\n

As a senior energy exec wrote to us in an email the other week:<\/p>\n

‘The challenges you have outlined re undertaking exploration in Europe are REAL.<\/p>\n

‘However like most challenging environments it creates opportunities for those who move early and have the fortitude to stick with it.’<\/em><\/p>\n<\/blockquote>\n

The last sentence struck a chord. Getting in early and having the patience to stick with it is the core to small-cap investing<\/a>.<\/p>\n

We won’t always get the timing right but the long-term fundamentals and the potential reward for backing the Euro-Energy story early make now the ideal time to punt on this sector.<\/p>\n

Kris Sayce
\nEditor, Australian Small-Cap Investigator<\/strong><\/p>\n

From the Archives…<\/em><\/strong><\/p>\n

Free of the Dragon: Why the Energy Market Doesn’t Need China<\/a>
\n2012-05-25 – Kris Sayce <\/p>\n

China Stirs Up Troubled Waters in the South China Sea<\/a>
\n2012-05-24 – Dan Denning <\/p>\n

How Chinese Stocks Are Fading Fast<\/a>
\n2012-05-23 – Lars Henriksson <\/p>\n

LNG: Why Australia Will Be a New Global Gas Leader<\/a>
\n2012-05-22 – Dr. Kent Moors <\/p>\n

A Shocking Week for China’s Economy<\/a>
\n2012-04-21 – Dr. Alex Cowie <\/p>\n

\n<\/img><\/a> <\/img><\/a> <\/img><\/a>\n<\/div>\n


\nEurope\u2019s Energy Resource Puzzle <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By MoneyMorning.com.au The big theme in the April issue of Australian Small-Cap Investigator was Europe. To be precise, that if Europe is ever to recover economically, it must develop its own energy resources. Take the following quote from a September 2011 report from the European Union: ‘More than half of the EU-27′s energy comes from … <\/p>\n

Continue reading “Europe\u2019s Energy Resource Puzzle”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-29913","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/29913","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=29913"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/29913\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=29913"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=29913"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=29913"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}