November 18th, 2014
The U.S.-Chinese accord on climate control may have grabbed the most headlines yesterday, but the trade pact signed between China and Australia is likely to have a much bigger impact.
In the shadows of the G20 meeting in Brisbane, Canberra inked a free trade agreement with Beijing that will see tariffs on all resources and energy products removed within two years.
By agreeing to the deal, Australia will now reap the benefits of zero tariffs on major exports like iron ore, gold, crude oil, and liquefied natural gas (LNG).
But that’s not the only upside “Down Under.”
This landmark agreement could also have a big impact on a tiny Australian oil stock…
November 14th, 2014
Whenever oil prices drop, everyone always wonders how it will affect wind and solar power.
It follows from the traditional assumption that renewables like these are only competitive when oil and natural gas prices are high.
After all, the early stages of wind and solar power came with a hefty front-loaded price tag, requiring massive government subsidies to both producers and end users to get off the ground.
Some states even introduced legal measures that required that utilities buy a certain percentage of their energy needs only from renewables.
All of this only added to the wider perception that renewables couldn’t truly contend, especially if oil and natural gas prices fell.
But those days are now rapidly coming to an end…