Global energy consumption has surged just as traditional energy sources have gotten harder and more expensive to obtain. Investment opportunities thrive among companies that respond with new and better methods of exploration, discovery, production and distribution of both traditional and alternative energy technologies.
The world’s population is expected to exceed 9 billion by the year 2050 – and 96% of this growth is expected to come from developing countries*. As consumers in emerging nations across Asia, Eastern Europe and South America strive for the prosperous middle class lifestyle we enjoy, they are purchasing an unprecedented number of items that require energy in all its forms. For instance, more motor vehicles are projected to be sold over the next 25 years than have been sold throughout the entire history of the automobile industry. At the same time, oil is becoming increasingly scarce and costly to get to market. Resources are finite, and in many cases they’re under the control of unstable governments. Environmental concerns have caused a global rethinking of fossil fuels. We need a multi-faceted energy solution if all of us – developed countries and emerging world alike – are to achieve and maintain a high standard of living. Although mainstream energy will likely remain an important energy source for years to come, consumers and investors alike are embracing developments that minimize its use. Technologies for generating power from renewable resources – such as solar, wind, water and geothermal – have seen efficiency gains and worldwide support that are improving their economic viability. At Guinness Atkinson Funds, we are confident that the alternative energy revolution will continue to gain momentum as technologies advance and the international community recognizes the importance of affordable, renewable and green energy resources to our planet’s long-term health.
Source: United Nations, Population Department Press Release (2009).