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Sunday, October 24, 2010
Catalyst: Peak Oil, REE and Lithium: The Next Oil Shock? TNR.v, CZX.v, RM.v, ALK.ax, LUN.to, REE, MCP, SQM, FMC, ROC, LI.v, WLC.v, CLQ.v, AVL.to, GXY.ax, ORE.ax, HEV, VLNC, AONE, F, NSANY, BGGF, GM, DAI, RNO.pa
at 5:21 AM"The world is going mobile and everyone wants stay mobile - we want to achieve this right regardless of Oil price and its availability. Now, we have technology which enables us to do so - our mobile communication devices and Electric Cars. What allowed this to happen is the drastic technological improvement of the battery technology and the discovery of a very powerful chemistry based on lithium ion solution. Billions of dollars and years of research have manifested as iPads, iPhones and Electric Cars."
We have another warning on Peak Oil situation - this time it is the report from New Zealand Parliament "The New Oil Shock?" This year we have a staggering number of reports and warning on the looming Peak Oil situation. It takes time for reality to settle in, particularly, when nobody knows what to do with it. We have put REE in the headline and only few months ago we would have to explain, what is it all about - now suddenly everybody is talking about REE and stocks involved in Rare Earths are all making new highs. It takes a crisis for us to realise that fundamentals are driving the real trends. Sudden realisation that China controls more than 90% of REE market and their reserves maybe will last only for another twenty years, created the catalyst in the market place.
What will it take to realise that we are running out of cheap oil? Another crisis?
We are talking here about the powerful mega trend Inflation multiplied by Peak Oil situation - we have to move and readjust our society. Our Energy diet is not sustainable any more. We are lucky in a sense that there is technology available to us to survive the Oil Shock if we will all move fast - Electric Cars. It is our Next Big Thing and at the heart of this disruptive technology lie strategic commodities: REE and Lithium.
Today everybody is exited about REE, tomorrow Peak Oil time will come and Lithium will make the headlines again. During excitement stage it is easy to make the wrong decision and chase the mini bubbles only to see them to pop - do not mistake the mega trends, Next Big Thing and parabolic rises. There is time to buy and time to sell. REE gives us a very good example - what can happen with a very small sector, when the all world depends on it. Peak Oil realisation will be next. With GM Volt and Nissan Leaf on the streets you will see the future - The Future is Electric.
New Zealand Parliament: The Next Oil Shock.
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