Matthew Engel

There has been a lot of talk recently about how changes in the economy are affecting the energy sector. This is an extremely important topic to anyone who has money invested in mutual funds, stocks, their 401(k), mortgages, housing or any retirement portfolio. Why? Because the face of the stock market, as we know it, is about to change. The past decade has seen large oil companies reigning supreme posting double digit growth, with natural gas vying for a close second. It is indisputable fact, that these products are natural resources. And it is also indisputable fact that these resources are finite, and their steadily increasing consumption will lead to a jump in price as the Earth’s reserves dwindle. Therefore, at some point in the future, any company which relies solely on oil or gas supplies will be bound for failure. This can be validated by the divestment of the world’s largest energy companies into renewable sources such as wind and solar.

The New York Times reported in late October that investors are nervous about prices for fossil fuels falling, which could cause alternative energy start-ups to incur heavy losses or declare bankruptcy as their market dries up. It is already difficult enough to obtain venture capital or equity financing in these times. Fluctuations in energy prices add considerable uncertainty to alternative energy (AE) technology based companies. It is well known that this industry is currently extremely vulnerable and will probably require strong government backing by means of subsidies and research financing. Personally, I think this would be a tremendous investment in our nations future – much better than investing in other securities that may continue to decline in value, such as American automakers.

Let it be known, that I have full respect for American car manufacturers – I just believe that are much to slow reacting to market forces and have been at the mercy of American oil companies for too long. Why else would they continue to market and manufacture the gas-guzzling SUV’s when all other nations across Earth are making smaller, lighter, faster cars which run on less fuel. I find that absurd, and unless Detroit mounts a drastic change and realizes that the future is electric and hybrid vehicles, they will be out of business by Q4 09.

This is my challenge to the next president of the United States: many of us see a new way forward, and hope that you can realzie this vision. Our hope is that you can solve both the economic and energy crises simultaneously with one blow: bringing alternative energy sources and electric vehicles to market will no doubt require large amounts of man power and resources while slashing our most damaging expenditure – oil. Creating thousands of new jobs for AE contractors, mecahical and electrical engineers, and scientists to design and install solar panels, geothermal systems, wind turbines nationwide. This would destroy our addiction to oil and usher in the green century we all so desperately need.