Financial Adviser

May 2010

Externality:  An economic side-effect. Externalities are costs or benefits arising from an economic activity that affect somebody other than the people engaged in the economic activity and are not reflected fully in prices.

An aerial view of the oil leaked from the Deepwater Horizon wellhead, May 6, 2010. (REUTERS/Daniel Beltra)

One of the New harbor Islands is protected by two oil booms against the oil slick that has passed inside of the protective barrier formed by the Chandeleur Islands, as cleanup operations continue for the BP Deepwater Horizon platform disaster off Louisiana, on May 10, 2010. (MARK RALSTON/AFP/Getty Images)

Unemployed commercial fishermen and their families wait in line to receive handouts from New Orleans Catholic Charities on May 5, 2010 in Hopedale, Louisiana. Many local fishermen have been temporarily shut down but have been hired by British Petroleum (BP) to lay oil booms in sensitive areas. (Sandy Huffaker/Getty Images)

More photos and notes can be found at: http://www.boston.com/bigpicture/2010/05/disaster_unfolds_slowly_in_the.html

Kayford Mountain coal mining project after mountain top blasting.

What the Kayford area looks like unblasted.

A before and after view of the Alberta Tar Sands.

The initial reactions to these pictures and thousands more we could see often are quite visceral.  Many people feel disgusted by what we are doing to the planet.  Others make the immediate argument that humanity takes precedence over nature and that we need these projects to survive.

I try to dial back the emotions and ask these questions.  If this is what we have to do to the planet right now to obtain the energy (and minerals and timber) we need, how long can we go on like this?  As a follow up, what will be the next logical step in energy development?

Next month, a look at the likely next steps and the likely time horizon.  Also, very exciting news about my practice. 

Your worried about the planet, my light bulbs, heat and transportation investment advisor.

Kirk Spano

This newsletter contains forward looking statements that may not come true.  Past performance does not guarantee future results.  This letter is intended for informational purposes only, and reflects only my thoughts and opinions in general, and do not constitute individual advice.  Opinions expressed may change without prior notice.