In fact Roberto Luongo Canada Jersey , her father explained the fundamental principles to my father over 30 years ago: A renewable energy source thats not subject to Arab oil embargoes or Mid-East wars ... cleaner fuel for the worlds automobiles... more jobs... less pollution.
Now, that future is here:
Every country on the planet wants to see more of its automobiles running on renewable fuels like ethanol. And with 600 million gas- and diesel-burning cars and trucks on the road today, that implies the most massive transformation since the industrial revolution. Every major government is implementing policies that stimulate ethanol consumption. And with hundreds of billions of public money pouring into research and development, this is not exactly a temporary fling. Wealthy individuals, large banks, major mutual funds are all looking more seriously at ethanol. And yet Rick Nash Canada Jersey , the big flows of investment money into ethanol have barely begun. Why the Hesitation?
I Count Three Reasons ...
?First, some investors seem to think investing in ethanol is strictly for environmentalists. They dont believe global warming is a man-made phenomenon, and they dont agree that cars should have to shift from gasoline to biofuels. So they dont see much future in ethanol.
Big mistake! The shift to ethanol is not just about burning cleaner fuel. As Elisabeths father pointed out over three decades ago, ethanol is also about reducing our dependence on petroleum imports ... slashing our vulnerability to wars and revolutions in oil-rich regions of the globe ... and gaining firmer control over our own destiny.
?Second, investors have focused on the fact that gas stations in the U.S. are resisting alternative fuels, making it almost impossible for ethanol to reach American consumers.
But as Ill show you in a moment Ray Bourque Canada Jersey , the consumption of pure ethanol (the kind that is being resisted in the U.S.) is not the primary source of demand today. Moreover, the U.S. is just one of many growing world markets.
?Third and most recently, some investors have hesitated to move into ethanol because they see petroleum prices coming down. If oil prices dont go up, they figure, ethanol wont make it either.
We disagree. The price for crude oil could fall to $40 per barrel, and it would barely make a dent in a massive global transformation to ethanol thats now under way. Most important Patrick Sharp Canada Jersey , their hesitation is your opportunity. It has helped bring down the price of some of the leading ethanol stocks. And it has opened a brief time window to jump in. Ill show you where in a just moment. But first, join me on a brief global tour ?so you can see for yourself how broadly based the ethanol revolution has already become.
A New Mega-Industry Is Born
For at least two decades ?from the early 1980s to the early 2000s ?the ethanol industry was largely stagnant.
Ethanol production in the U.S. and Canada was growing, but only gradually. Brazils ethanol output was actually sliding. And worldwide output was stagnating. Then, at the turn of the new millennium, two things happened: The U.S. government and industry began to push ethanol more forcefully. And Brazil, still the worlds leading producer despite the earlier decline Patrick Roy Canada Jersey , took off!
Result: Worldwide ethanol production has nearly doubled in five years ... the surge in volume has triggered the development of new, more efficient technologies ... and a new mega-industry has been born.
Right now, the only country with cars running on pure ethanol is Brazil. But a mix of ethanol and gasoline is used in the U.S., the European Union, Mexico, India Patrick Marleau Canada Jersey , Argentina, Columbia and, now, Japan. Heres a country-by-country rundown ...
Brazilian Ethanol: Worlds Richest Investors Are Starting to Pile In!
George Soross Adeco has recently bought a major ethanol plant in Brazil. Bill Gates acquired a share in three new plants in Brazils western state of Mato Grosso do Sul. Even Googles Larry Page and Sergei Brin have revealed plans to invest in Brazilian ethanol. International companies are one step ahead of them: Infinity Bio-Energy, which trades on the London exchange, already operates Brazilian ethanol plants valued at $200 million and plans to invest another $500 million in five more plants by year-end. Evergreen Patrice Bergeron Canada Jersey , a British group, has recently bought Cridasa, a major ethanol producer in Minas Gerais. And the French group Tereos bought 6% of Brazilian ethanol producer Cosan and owns three plants.
Overall, investments in Brazils ethanol industry are surging. In 2005, they were about $6 billion, including new plants P.K Subban Canada Jersey , acquisitions and expansions. In 2006, theyve surged to nearly $10 billion. And by 2010, even if theres a recession in the U.S., they should hit at least $15 billion.
The main attraction: Ethanol is transforming Brazils economy, and Brazils ethanol technology is about to transform the world.
The key factor: Innovative ways of lowering the cost of production. Back in 1980, it cost Brazils ethanol producers over $2.60 to make just one gallon ?not exactly competitive with gasoline!