North America is now top energy producer but still needs Warren Buffett’s solar glow (OXY, CVX, MRO, TAP)
Major exploring and fracking by oil giants such as Occidental Petroleum ( OXY , quote ), Marathon Oil ( MRO , quote ), Chevron ( CVX , quote ) and others has resulted in North America producing more oil than any other region in the world. But the need for crude oil will continue as fossil fuels account for 83% of U.S. energy needs.
According to an article in the National Journal by Coral Davenport, "Good News, Bad News," the United States and Canada, combined, are now the largest oil producer in the world.
This is due, in large part, to success in fracking oil in new areas such as North Dakota and Montana.
But as Davenport states in the National Journal piece, "The only way the United States can reduce its dependence on oil foreign oil is by reducing its dependence on oil altogether, through a fundamental shift to other forms of energy."
Enter, stage right: Warren Buffett.
Warren Buffett recently spent $2 billion buying a solar energy farm in California for the holdings of Berkshire Hathaway ( BRK-A , quote ).
Two things Warren Buffett loves are established industries and positive cash flow. He is not a venture capitalist. He does not invest in speculative development-stage companies.
And that means that solar has finally arrived.
"In a lot of ways, this is classic Warren Buffett," said Bruce Bullock, executive director of the Maguire Energy Institute at Southern Methodist University in a Las Angeles Times article by Ronald White. "He comes into an industry that is starving for capital investment. At the same time, this is something that also tells people it's time to take solar power seriously."
Traders who want what Warren's having could do worse than the larger of the two solar ETFs, TAN ( quote ).
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