June 02, 2008 at 6:00 am by Tom Lydon
One side effect of an oil price pullback could be a decline in solar exchange traded funds (ETFs), but doesn’t seem to be happening yet.
Oil closed at $127.35 a barrel on Friday after rising above $135 the week before. Market Vectors Solar (KWT) shot up 6.6% on Friday, while Claymore/Mac Solar Energy (TAN) went up 5.1%.
John Spence for Market Watch cites Shaeffer’s Investment Research as saying that pullbacks in the price of oil could put pressure on the solar sector. After all, the high price of energy is one of the major factors in the search for alternative forms. With any luck, perhaps concerns about global warming or fear of another situation like the one we’re currently in will keep interest in the solar sector alive.
Tags | Energy
June 11th, 2008 at 7:56 am
Solar is primarily used to generate electricity. In
the United States, most electricity is generated from coal, nuclear, or natural gas — not oil.
In 2007 oil was responsible for 1.6% of US electric generation, according to the Energy Information Administration.
http://tonto.eia.doe.gov/energy_in_brief/electricity.cfm?featureclicked=1&