Lithium, page-173

My view lordearl is a macro one which CXO are but a small part. The energy sector is in transition as a mega trend because we have a growing population world wide.

I see lithium and substitutes as transition commodities as I do the nuclear industry, to move populations to depend on electric power. Softening up processes are beginning now with high energy prices. It is in its infancy, and not a mature product to be traded like a mature product. Can't see the net gains made in carbon elimination at the moment when manufacture through the whole vertically integrated system produces carbon to bring the components of new energy applications into existence but a necessary step forward to achieve those gains. There is the obvious role for nuclear energy also as a transition process to build the grids etc to harness the sun radiation on greater scale to radically eliminate the carbon imprint IMO. The nuclear industry has some issues but I see a greater danger in the carbon emissions from fossil fuels providing energy to tool up.

The question I ask then, is the new energy sector a paradigm shift? If it is then the likes of CXO should not be traded like a mature commodity if one has a longer view. Seems the world is being tooled up for it. This resource maybe exhausted before others are introduced as substitutes which may be more efficient simply because of the time it takes to build capital.

In this context, I look to be free carried in companies like CXO and will trade non core holdings to achieve that goal because the growth is far beyond the 5 year horizon.