Folks owning stock in Vestas Wind Systems* got some bad news yesterday as the Danish builder of wind generators reported lousy earnings, and even worse guidance through the rest of the year. Shares dropped 22% at the news.
Talk about having the wind taken out of your sails! Or turbines in this case.
While there has been much talk about wind power, part of the "green" energy solution, there is little profit because while demand exists, financing doesn't. Especially for infrastructure to get the power from where the wind is, to where the demand is.
So wind power works, it's just not working now. Both the government and the industry itself need to manage expectations, it's a PR thing. We need to continue to develop alternative energy 'cause we're going to run out of oil eventually. But we're a generation away at least from replacing the old with the new.
Sadly, the argument about energy is "Either-Or" but not both. We'll need both fossil fuels and green energy deveopment at the same time. It's up to this generation, to make sure power is available for the next.
As one Gulf oil worker said, "Air Force One runs on jet fuel." There's also a reason 100 plus coal trains leave the Powder River Basin (Let 'er buck) in Wyoming every day. A demand for power being met by tried and true fossil fuel sources. But while the supply is plentiful, it's also finite.
So let's not give up on wind, but let's be real at the same time.
Brian Olson
Conversation Starters LLC
"We get the conversation started about you"
* I own Vestas shares
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