Buy It If It Burns
Blue chips normally don’t do this…
But that’s exactly what happened this week after GE (NYSE: GE) beat earnings estimates by $0.04 and signed $2 billion in deals with the Chinese.
A good chunk of that Asian cash creation was for 50 aeroderivative turbine generator sets, which can generate between 13 and 100 MW each.
They’re giant engines that can use a variety of fuels to power jets or produce electricity.
GE’s spec sheet says these engines can be fueled with:
natural gas
syngas & medium BTU gas
liquid fuel
dual-fuel (natural gas or liquid fuel)
bi-fuel (natural gas and liquid fuel)
water or steam injection for NOx abatement
Why does China want 50 of them?
Because they, like the rest of the world, are in for a serious energy crunch over the next few years…
And with the days of cheap oil behind us, the scramble is on to find new energy solutions.
Buy it if it burns
(or otherwise produces a net energy gain or increases efficiency)
Because the solution to Peak Oil, as many countries are proving, isn’t more hard-to-get oil — though that will continue to be profitable for some time…
Instead, there will be multiple solutions to fill the gap left by disappearing oil production — and to fill the pockets of wise investors.
China’s purchase is the perfect indication of that. They don’t want to pigeonhole themselves by betting on just one fuel.
It’s the same reason they’re also pursuing solar, wind, batteries, efficiency, biofuels, coal, and oil with breakneck urgency. And it’s the same reason energy-related stocks are starting to leave the broader market behind.
As Peak Oil continues to bear out, every available energy solution is on the table.
You can find this week’s analysis of those solutions below.
Call it like you see it,
Nick
You can return to the main Market News page, or press the Back button on your browser.