Investment in the Energy sector. What risks can arise?

The market isn't consistently positive. Such uncertainty is a great concern among investors. What are the major reasons that investing in energy makes an essential sense rather than a loss?
 
renewable energy is where your research should lie.....also the power distribution companies are going to get ridiculus returns shortly.(my theory). get them for the dividends with your wins.
 
Getting tougher and tougher, plus way much more expensive to drill wells for crude oil or gases. I am thinking by the time crude oil goes up again which might take years as I see our economy tanking further and has topped out early 2014. I am looking into farming in five years and planning on investing into over 100 solar panels for self use but also selling back to electric company, solar is not like it was 10 years ago of being super expensive and small amount year warranties. I have looked into wind turbines, but from what I have read, high costs and of course need to live in windy area, don't care much for living in windy conditions but prefer to live in sunny areas. But still takes 7-11 years to breakeven on costs. I believe there might be 30% tax incentives for couple more years unless Congress extends it.
 
The market isn't consistently positive. Such uncertainty is a great concern among investors. What are the major reasons that investing in energy makes an essential sense rather than a loss?

Raoul Pal ‏@RaoulGMI Oct 31


Three observations - 1, Oil with its ludicrously large spec long positions sure looks like its going to below $20. Trend break will confirm

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Getting tougher and tougher, plus way much more expensive to drill wells for crude oil or gases. I am thinking by the time crude oil goes up again which might take years as I see our economy tanking further and has topped out early 2014. I am looking into farming in five years and planning on investing into over 100 solar panels for self use but also selling back to electric company, solar is not like it was 10 years ago of being super expensive and small amount year warranties. I have looked into wind turbines, but from what I have read, high costs and of course need to live in windy area, don't care much for living in windy conditions but prefer to live in sunny areas. But still takes 7-11 years to breakeven on costs. I believe there might be 30% tax incentives for couple more years unless Congress extends it.

We have been working with a group for 7 years in an effort to gain wind turbines on the farm. Twenty eight other farmers and us formed a group. Developer stated it would be 63 among all of us and hopefully to begin in December. Not optimistic as it has been pushed back before. In meetings the electricity purchaser states difficult at this time with gas prices. We did sign before Dec 2015.
Good Luck with your idea Handle123!
Mac
 
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