SOURCE: Green Chip Stocks

November 09, 2006 16:24 ET

Alternative Energy Will Become Cost Competitive by 2007: Analyst

BALTIMORE, MD -- (MARKET WIRE) -- November 9, 2006 -- The Democrats finally took Congress, and Wall Street is enjoying a quick spike in select renewable energy stocks.

But according to Renewable Energy Analyst Jeff Siegel of, investors are reacting in an irrational manner.

"Most politicians in Washington, Democrat or Republican, already know the only way to secure their jobs is to support the type of legislation that will strengthen domestic energy infrastructure. And renewables are a sizeable chunk of the solution. So this is not the sole catalyst for renewable energy growth. Rather, it's a very real global energy crisis that will ultimately prove this market to be one of the most profitable within the next decade."

Earlier this week, the International Energy Agency (IEA) warned that the world's energy supply is rapidly running out.

IEA predictions point to a 53 percent surge in global energy needs over the next 25 years and oil prices running in excess of $100 a barrel by 2030.

According to Siegel, though, "We'll see $100 a barrel way before 2030."

The IEA noted that the cost of satisfying the world's energy needs has risen by $3 trillion a year, and governments and companies will now need to spend $20 trillion in 25 years to succeed in meeting demand.

That's roughly the collective GDP of the U.S., Japan and Germany.

And if oil producers can't meet the rising demand, many analysts believe alternative energy sources will fill the void.

Siegel insists, "The reality of peak oil is pushing the free market closer and closer to validating the cost competitiveness of alternatives. In fact, some renewable alternatives will be competitive by next year. And this is providing a wealth of opportunities for those who can see beyond the temporary blips of market corrections and manipulated oil prices and focus on the big energy picture. When you look at the growth rates, the technology and the massive amounts of VC money that's pouring into this market right now, it's a no-brainer."

In his free e-letter, "The Green Chip Review," Siegel gives investors interested in renewable energy markets some general advice and explains in detail which sectors of the renewable energy markets have the most potential for significant, long-term growth.

You can access The Green Chip Review completely free by clicking here:

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