Pinnacle Activity Ticker
Water as an Investing Thesis
Americans in particular use a lot of water. In Canada we are blessed with the Great Lakes and it also benefits many of the northern States, but much of the world is not so blessed. Consider that it takes:
- 667,000 gallons to grow an acre of corn, and it is a primary source for much of our food we take for granted.
- 2,400 gallons to raise one pound of meat, think about that next time you sit down to a big steak dinner.
- 1,800 gallons to grow enough cotton to make one pair of jeans, I bet teenagers never give that a thought.
- 1,500 gallons to make one barrel of beer, and that takes very high quality potable water.
- 53 gallons to make one latte, again, with most people this never crosses their mind.
The average American household uses 400 gallons of water a day or 146,000 gallons per year,. and the above statistics are only a few examples
With less than 2% of the worlds water being potable, and the high levels of pollution even in the oceans, and the many demands for increasing water usage, there has to be a strong investment angle in a number of sectors. Desalination is a partial solution, but very expensive.
I would like to invite all Pinnacle Digest readers to weigh in on investment angles relating to water so we can as investors be ahead of the trend for increasing DEMAND, always a good angle for profits. What drew my attention to this sector is several things; 1) the deplorable pollution in China and the urgent need for potable water in Africa.
2) Recent new techniques in "fracking" with water flooding of thousands of oil and gas wells being drilled is also increasing demand as well as spinning off the need for storage, trucking, cleaning, waste disposal, it is a broad field of investment possibilities. I have several companies to consider I will post at a later date when I see what others offer up.
3) With growing, even burgeoning populations in some countries the increased demand for food production is also limited by available water for irrigation, in fact in some countries wars have broken out over usage of rivers and lakes supplying vital resources to more than one country. Even in the U.S. states are fighting over the diminishing supply from the Colorado river for example, and many more such situations could be cited, there is in fact a crisis looming as illustrated by the recent drought conditions in the mid-west which actually was also serious here in Southern Ontario where I lost about half of several garden crops due to a total lack of rain in July, and had to spend 3-4 hrs a day with a garden hose to save the rest. In fact, unless we receive "rain in due season" which means virtually weekly during the entire growing season, crop yields of any kind are seriously diminished in both quantity and quality.
Some analysts are suggesting that WATER could well become our next vital resource at risk that could impact the lives of millions, what do you think about this?