Categorized | Energy Investment

Investing in Energy

Posted on 12 May 2014

Investing in Energy

Fuel and the future, it seems those are the topics everyone is talking about today.  How are we going to maintain our energy and fuel sources for our grandchildren?  Is there an alternative out there?  What can we do to help?  Well if you are a businessperson, one way to shape the future is by investing in energy.  But it won’t be easy.

Energy investment comes in many forms.  You can buy energy commodities such as oil, electricity, and gas.  This functions similarly to any other sort of commodity investment such as gold, silver, or coffee.

Another way to invest in energy is by purchasing exchange-traded funds (ETFs).  These collect an investor’s assets and invest them, in this case into energy.

Investing in energy can be very dangerous, but also very lucrative.  Energy is all determined by the market, and it can be complicated to understand what will go up or down or sideways.  There never is really a clear view of what to do, and issues of oversupply and undersupply are always going to be there.  The price of gas can affect your business as much as it does your car.  There are no guarantees, so if someone offers you one, they likely don’t understand the energy market.

Investing in energy can also be a smart move for environmental and financial reasons, as shown by the guys who have done it such as David Leuschen, Founder of Riverstone, LLC.  Leuschen started out at Goldman Sachs and grew their Global Energy and Power Group before going off to find his own firm.

Energy investing isn’t easy, or even easy to understand but it can make you a lot of money.  If you can understand the markets and are willing to take the risk, it might be a good idea to try your hand at it.  There are more methods than the ones listed above to help get involved in energy investing.  If interested, find the one that is right for you and go with it.

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