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Chinese growth rate over the last few decades has averaged just over 12%. This year’s third quarter rate was around 9%. If you call 9% growth with over 1.4 billion people a slowdown, well then thank God for the slowdown or else our world would be facing a real environmental crisis.

You see, we reached peak oil discoveries 30 – 40 years ago. Yet with third world modernization energy demand just kept growing. In other words, even with an economic slowdown supply is having problems keeping up with demand. Would you or your neighbor sell the family car and buy a couple of bicycles? Unlikely. Once you get into the comfort and convenience of driving a car it becomes very difficult to go back to public transit or pedal power. Technology has also infiltrated more humans than ever before and with it comes the need for electricity. Renewable energy would be the preferred choice. Solar Power doesn’t work at night and windmills need wind. These very important elements are unrealistic in many of the world’s population centres.

Therefore long term energy is a scarce resource. Hopefully mankind will learn how to conserve this precious gift for future generations. Right now energy shares are selling at historic lows. That is why we think it presents a great buying opportunity.

The Middle East, the world’s largest oil reserve, is under consistent turmoil. Unfortunately, and against our wishes, this turmoil is likely to continue for some time to come. Oil is such a strategic resource, it becomes a huge negotiating tool. When trying to control things, it helps if you can control the energy. The uncertainty of a consistent energy supply should create a premium to the prices we currently have. This unfortunate situation should put a much greater value on our politically stable energy recommendations.