Oil Consumption Statistics: The European Union's Oil Consumption Growth

By Sara Nunnally and Bryan Bottarelli

Global Markets: Overseas Action Dictating U.S. Trading Like Never Before

Material Profits
Denmark and Finland are striving for 30% renewable energy based by 2010. Will they make it?

Trading Tactics
Technically speaking, I think that we need to retest last week’s lows before making a significant move higher.

In 1993, the United States consumed roughly 16.8 million barrels of oil a day. In 2003, that number increased 16% to 20 million barrels a day. Major consuming countries in Europe (Germany, France, Italy, the United Kingdom, Spain, Belgium, the Netherlands) consumed about 10.5 million barrels of oil a day in 1993. In 2003, they were only consuming 11.4 million barrels a day. Now, the entire EU consumes about 14.5 million barrels a day with the addition of 20 other states.

Is it safe to assume that these 20 other member states consume 3.1 million barrels of oil a day, or 155,000 barrels a day each? That wouldn’t exactly be fair…

Poland, for example, consumes 173.9 million barrels a year, or 476,000 barrels a day, on its own. So what does this mean?

In 1993, Germany was consuming 2.89 million barrels of oil a day. By 2003, the country was consuming only 2.68 million barrels a day. Today, they are consuming 2.44 million barrels a day, nearly a 9% drop.

The United Kingdom cut its consumption from 1.83 million barrels a day in 1993 to 1.72 million barrels a day in 2003. It now only consumes 1.66 million barrels a day -- a 3.5% drop.

Spain, whose oil consumption rode 46% between 1993 and 2003, consumes only 2.5% more oil than it did four years ago.

Italy’s oil consumption, which declined 1% between 1993 and 2003, has declined a further 7.5% in the last four years.

The European Union has been extremely proactive in cutting its oil consumption over the years. High gasoline taxes funnel cash into renewable energy research. That’s something we’re not likely to see here in the United States with folks complaining when gasoline costs $3 a gallon.

The EU has some ambitious renewable energy standards, too, that are pushing countries to work hard at achieving certain percentages of energy generation from renewable sources like wind power and solar energy.

In 2000, the EU declared a target of 12% of total energy consumption and 22.1% of electrical consumption to be derived from renewable resources by 2010. But other countries are even more motivated.

The European Commission told IHS, a global provider of technical information in the energy and engineering fields, “A decade ago, the EU started working towards a target of a 12% share of renewable energy in its overall mix by 2010. Although renewable energy consumption has increased by 55% since, its share is unlikely to exceed 10% by 2010.”

But far from giving up, the EC says, “The EU, therefore, needs a step change to provide a credible long-term vision of the future of renewable energy.”

Without ambitious goals, the EU would not have increased renewable energy sources’ share of electricity generation by 55% in the past 10 years.

European businesses are watching the renewable energy sector becoming more and more profitable. The recent bid for Repower (RPW:Frankfurt), the German wind turbine manufacturer topped 1 billion euros.

Vestas Wind Systems (VWSYF.PK), our favorite wind energy play, saw its share price rocket from $22.55 to $45.35 in a year’s time.

I’ve been working on our latest Material Profits special report that will take full advantage of the EU’s thirst for more renewable energy. From wind power to solar power, to the GE of the EU, I’ll have four companies to tell you about that will help the EU reach its RE goals.

Trading Tactics
Global Markets: Overseas Action Dictating U.S. Trading Like Never Before

As you very well know by now, China’s Shanghai Composite kick-started the selling pressure when it dropped 9% in last Tuesday’s session. This bearish overtone spilled over into the U.S. markets -- which dropped the Dow 400 points in one day -- making it the most violent single-session loss since the terror attacks of September 11.

Ever since that devastating loss, the U.S. markets have watched the overseas action like never before. And in the five trading days that followed, the opening moments in the U.S. markets were extremely volatile -- driven mostly by the overnight action across the pond.

Today the U.S. markets are getting a lift -- due primarily to a rebound in the worldwide markets. As I write, the Dow is up over 100 points. But can this upside last? That’s the big question.

Technically speaking, I think that we need to retest last week’s lows before making a significant move higher. Sure today’s big upside move is great, but it’s a question of sustainability.

I’ll tell you what would be impressive: It would be a strong statement if the overseas markets fell -- but the U.S. markets bucked the trend and rallied. This would show just how strong the U.S. markets are. But until this happens, we could see increasing levels of intra-day volatility -- sparked in the early moments of the trading day by the overseas market action.

And for that reason, Adam and I have just issued a new WOW play that offers you a cheap way to play any further downside action into July. In fact, this new play gives you plenty of time, is currently trading in the money, and is still under $1. In my view, that’s a beautiful combination of big upside reward with very minimal up-front investment. If the charts play out according to plan, you could witness a 244% gainer on this one play. So all you WOW readers -- make sure to check out tonight’s alert!