Now, linked here, is a source of a veritable wealth of data, commentaries, and forecasts regarding present and future trends of worldwide energy markets. The first step toward smart investment is information. Information is power, as the old saying goes. It is also manifestly true that information is wealth. No winner in the marketplace has ever managed to achieve anything of note by way of ignorance.
Consider how complex the modern energy market has become. There are multiple conflicting trends that have complicated the picture in terms of decision-making. Only a few years ago, Peak Oil projections were forecasting the imminent doom of the oil industry. With shale extraction now having become technologically feasible and economically viable, that picture changed. Coal was, at one time, a primary fuel for electrical power production. Now, that demand has crashed due to multiple market factors coming into play, including the expanding development of renewable energy technologies and nations such as China grappling with serious air pollution problems. And, there has also been the discovery and development of vast new sources of natural gas as an alternative. All these things have combined to make coal unattractive and uneconomical, leading to its irreversible downward trend.
As can be seen, energy investment has suddenly become a much more complicated proposition. Both economics and technology are imposing changes almost on a monthly basis. Certainly, the picture for energy changes year by year. As a result, projecting long-term trends has become a very complicated exercise. Market information can become obsolete overnight. Which companies are worth investing in? What technological trends promise the biggest payoff? What “sure things” are likely to suddenly become pitfalls?
Acquiring accurate, up-to-date information on these suddenly very dynamic energy markets has become essential. Knowing which production trends are likeliest to prove the most stable source of long-term growth can give investors a great edge. Alternatively, knowing how to play the game of sector-indexed investment promises a rich payoff down the line. The steady growth of one’s portfolio may require patience but, as a winning investment strategy, it has multiple advantages. Knowing how to guarantee profit while insulating oneself from sudden market shocks makes a key difference between generating long-term wealth or losing everything in a bad gamble. This is where information proves crucial to making intelligent market decisions for both the short and long term.