ENERGY FINANCE


ENERGY AS FUTURE


Energy as Future is an investment model that bets on higher prices in the future ('going long on energy'). This model is very good serviced by the Energy as Variable model, that delivers a open/online spreadsheet model to everyone who wants to calculate future energy price effects, with variable entries for each calculation facet and several diagrams of the calculation outcome. Energy as Future is a model that can be used with market funds or without them (independent). The Energy as Future model breaks out of the out-phased historical energy prices, which where a result of cheap and abundant available high quality oil and coal. This 'jail' of the past really is bad for current energy investments as they use a no longer available reference environment for a new and total different energy reality. It's like calculating expensive produced off-season vegetables on cheap in-season market prices. The reality is that cheap, abundant, high quality fossils are behind us. Therefore a strong developed energy futures market will support the energy transition process very much. The first thing this industry will go for is giving some heavy counter weight o the oil industry by multi facet communication towards the media, politicians and governments. Exposing that's not in the interest of the oil industry to talk about PeakOil and PeakCoal, and that the oil and coal industry have no interest at all in exposing the real data, nor in development of comparative alternatives. The energy futures industry will bring the energy debate professionalism by lobbyists out of other sources than the oil and gas industry and will bring the discussion and future perspectives more in to a balance. Nobody (except the oil and gas industry) is served by the current PeakOil and PeakCoal blindness. Nobody will be served by a switch into the opposite direction (extreme over-valuation over energy future). But by a professional energy futures industry the oil and gas industry gets a good counter weight that give a more balanced and objective overview. Naked long, nor naked short should be abandoned, as this gamblers only takes the profits and walk away from loses. Naked futures should be abandoned in as many nations as possible by good legislation and ditto law enforcement. Energy as Future is a concept capable of generating a massive energy transition investment wave.


Author: Gijs Graafland


Back to index page of Energy Finance


Download the full Energy Finance report in PDF