October 15, 2013
The rise of the oil and gas market is gusting with global connections and partners developing into a fluid pipeline. The political push on oil and gas is a clear sign on energy kudos. The report on “Clean energy investment headed for second annual decline” is a big egg on the face of green and renewables as the next energy solution.
Eco Business news on “Clean-energy investment fell 14 percent in the third quarter from the prior three months as Europe curbed subsidies and cheaper U.S. natural gas lured investment. The $45.9 billion spent makes it “almost certain” that annual investment in renewables and energy-smart technologies will fall for the second consecutive year from $281 billion in 2012, Bloomberg New Energy Finance said in a statement.”
The opportunity to understand that clean energy is growing but potentially being bumped up to withstand the lack of attention the sector is receiving. The nexuses between oil and gas, economy and clean energy are like the teeter totter, the more pressure placed on one side causes the other to rise. Clean energy is a focus to support the reduction in greenhouse gas emissions, climate change and energy production to meet population demand yet, as they say the sector today is trending downward but will rise again.
“Investment in the quarter was 20 percent lower than the same period last year as spending in China, the U.S. and Europe fell. The U.S. saw the largest decline, sliding 41 percent to $5.5 billion, according to the London-based research company.”
“Europe’s clean-energy industry is retrenching after subsidies were reduced in nations from Germany to Spain, which helped propel record growth in previous years. Cheap gas in the U.S. driven by a shale-drilling boom and a reduction in China’s spending on wind power also contributed to the overall decline, the London-based consultant said.”
It is obvious, clean energy has been side tracked but is maintaining momentum from previous orders and forward thinkers to keep the train from running off the tracks. The economic downturn and the shift to the big return of oil and gas has taken center stage moving the eye of the ball on clean whereas, the bigger picture of sustainable applications including, clean and renewables is treading.
“While the $45.9 billion is still substantial and greater than that invested in 2004, the “loss of momentum since 2011 is worrying,” he said. Envoys from more than 190 nations meet in Warsaw next month aiming to work on a treaty that would reduce greenhouse gas emissions worldwide.”
The comparative stats reveal that despite a downturn there is still an upside. The issue is comparing oranges to soda. Both have liquid and can be a drink but they are not in the same categories. The comparisons of time can be used as a rule stick but under the consideration that the technology are growing and are being adopted, as well as orders coming online reveals trending more down than up.
“Asset finance for renewable energy projects bigger than 1-megawatt was $26.4 billion compared with $31.9 billion in the second quarter. Venture capital and private equity investment had its weakest quarter since 2005, falling to $724 million from $1.3 billion, BNEF said. Investment in clean-energy companies through public market fund raising fell to $2 billion from $3.8 billion.”
The goal is to find methods to support the roll out of an energy mix to support expanding demand, as well as ways to mitigate security risks. Energy is still the next bastion of exploration to deliver robust solutions.