Investing In Energy: 3 Non Oil Options You Should Consider

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As oil prices continue to plummet, concerns regarding weak economic growth expand, which leaves investors wondering if it’s time to go bargain hunting.

Crude oil is still important, but if we want to continue to keep the world humming along, other markets will have to enter into the energy investments sector. As there are no silver bullets, to continue to meet the demand we will have to rely on non crude sources of power.  These will mainly consist of alternative and renewable energy solutions.

As the overall stock market is charting record highs, the energy sector is down by 3%, making it the only group in the red. Here are 3 other types of energy stocks that we believe are worth looking into.

#1) Solar Power

Solar power is becoming more popular and it’s about as green as it gets when it comes to saving energy. After all, it is powered by the sun.  Solar power is becoming more affordable than traditional sources of energy, like the good old power company. Normally declining stock prices would project weak growth or a shaky outlook, but solar energy is growing by leaps and bounds.

Solar energy is an investment.  Those interested in the savings it brings must actively go out and purchase solar equipment for the home or office.  After the initial costs, you save money on your energy bills.

Certain studies indicate that when you install a solar photovoltaic (PV) system, you will begin to recoup portions of your investment quicker than you would think. If you spend $25,000 on a PV, your home value is going to increase as well. The goal is to become relatively free from high energy bills. When installing an advanced system, you’ll never have to worry about another high utility bill or energy costs.

#2) Wind Energy

Wind energy is another renewable source that is catching the attention of commodity investors. Wind energy is generated by gigantic windmills, which are spaced apart on wind farms.

The challenge with wind energy is that it solely depends on wind gusts, which can be inconsistent at best. Traditionally, wind power has held a small part in the energy generation sector. Few companies deal only with this type of source for energy.

Many industrial companies are beginning to establish large scale investments in wind-energy production. If you’re looking to invest in wind power in a non-direct manner, General Electric or GE is renown for it’s large industrial footprint.

Because of higher energy prices, wind energy might gain more momentum as time passes. If you’re interested in investing in wind power, The American Wind Energy Association offers helpful information. The database also contains a list of companies that are involved with wind energy.

#3) Hydro Power

Also known as hydroelectric power installations, they take the energy from flowing water to produce electricity. This type of energy source is also considered renewable because the water isn’t consumed during the process and is a natural resource. Another benefit to hydroelectric power is that it doesn’t produce greenhouse gases.  These gases absorb infrared radiation, contributing to the greenhouse effect.

Hydroelectric power stations work when water moves through a turbine which spins the rotor of an electric generator, that creates a magnetic field, which produces electricity.

One way to invest in hydroelectric power is by use of stocks because investing directly isn’t feasible. The best way to invest in this sector is to invest in water companies that are also engaged in this industry.

There are a number of companies whose operations include the use of hydro power, such as AECOM Technology (ACM), Alstom (AOMFF.PK), Brookfield Renewable Power Fund (BRPFF.PK), and Run of River Power (ROR.V). Here is a  complete list of publicly-traded hydro power companies.

Investing in non-oil forms of energy is becoming as profitable as oil itself. As the oil trading market fluctuates, more alternative ways to produce energy will take its place.  Now that you are familiar with them you can make a better decision when choosing how to invest your money.

Tell us what you think of the different forms of energy being used besides oil. Do you think it’s beneficial not to use oil? We’d like to hear what you have to say!


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