Seek Out Alternatives
As portfolio managers look to expand their energy portfolio, options are plentiful. One cleaner
fossil fuel option, natural gas, has increased global production by roughly a third over the past
decade, spurred by the discovery and extraction of large natural gas deposits.
As the world’s largest natural gas producer, the United States has launched a flurry of projects that aim to make the nation a net exporter. However, some deposits are proving to be less
productive than hoped.
“Shale gas deposits have a small sweet spot,” Mr. Rifkin says. “When you mine it, you get that
gas out in about 18 months. It’s not like an oil well in Saudi Arabia, which goes on for 30, 40,
Some countries are turning to nuclear energy to cut carbon emissions while still meeting
“Not knowing what’s going to happen
in longer horizons creates a lot of risk
in that investment. The uncertainty is
greater, and it demands even more of a
portfolio management approach.”
—Galen Townson, PMP, Synergy, Perth, Australia
( ) Fossil fuels account for 82% of the world’s energy consumption— 31% coming from