Ready for These Five Potential Energy Shocks? #3: Blackout Leaves Much of U.S. in Dark for Weeks
Submitted by EnergyTechStocks.com
As big a shock as $4-a-gallon gasoline is proving to be for many Americans, the warning signs have been there for the last four years, during which time pump prices have consistently recorded huge year-over-year jumps averaging roughly 50 cents a gallon. While $4 gas isn’t likely to crush investors’ portfolios, there are other energy shocks on the horizon that could. In this EnergyTechStocks.com Special Report, we look at five events investors would be wise to plan for as best as they can. None are certain to happen, but warning signs are there.
Shock #3 – A power failure plunges half of the United States into darkness. Panicky Americans stampede supermarkets and stock prices plunge.
With gasoline prices in everyone’s face, America’s “other” energy crisis will continue to escape attention until the nation is suddenly plunged into another massive power blackout. That day is coming and soon, according to experts. Last week Arch Coal’s chief executive warned about power shortages developing within two years. Veteran electric utility analyst Dan Scotto recently told EnergyTechStocks.com that the United States is “wide open” to a massive power blackout.
As Scotto noted, America’s electricity problems encompass the entire system. In most of the U.S. there is insufficient reserve capacity available in the event a big power plant suddenly goes offline. In addition, the nation’s electric grid continues to deteriorate as utilities make only the most necessary improvements. That the U.S. has a third world power grid is now an accepted fact. (For more on Scotto, see Disaster Forecast (Part 1 of 2) - U.S. `Wide Open’ to Another Crippling Power Blackout - Veteran Utility Analyst Scotto.)
When the next big blackout strikes, hopefully you won’t be stuck on an elevator or in a subway train. No way, however, you won’t face a run on perishable food items that will help panic markets, sending stock prices way down. But while your overall portfolio likely will take a hit, there should be pockets of opportunity. Every company that has a connection to the electric power industry could benefit as Congress and the states finally face up to the need to revitalize the grid plus build more power plants, the latter even as Washington incentivizes energy efficiency.
Big winners could come from among manufacturers of electric cable (such as General Cable) as well as major contractors and construction firms (such as Siemens, Alstom and General Electric). Other winners could include onsite power generation firms (such as Capstone), plus energy efficiency technology firms (such as Honeywell and United Technologies), plus tech firms whose equipment should usher in the “smart grid” era (such as Itron).
