When the Wells Run Dry - This Company will Profit!

And certainly Baltimore’s clean-cut mayor, with his aspirations of becoming the state’s next governor, will be more than happy to boast that this number is a welcomed decrease from 2004’s 278 homicides.

Meanwhile, the hard-working citizens of Charm City must learn to feel comfortable with the police explaining random shootings within the city limits as, “Hey…it’s Baltimore. What do you expect?”

That’s the response I got on Monday morning while talking with the police after we called in to report that a stray bullet found its way into one of our conference rooms over the weekend.

The .45 caliber, full-metal jacket pierced the large double doors in the front of the building, an inside wall, flew through the conference room, punctured the window, ricocheted off a second wall and landed on the stairs.

What a great way to start the week!

Of course, those who live in the nation’s largest and most dangerous cities are probably not even remotely surprised by this kind of thing.

The fact is, while wars continue to be waged in the Middle East…and we look on in horror – cities like Baltimore, Detroit and even the nation’s capital are claiming more innocent civilians per day than some countries claim in an entire year.

Even those who are forced to dodge the raining rockets and homemade IEDs in the Middle East have looked upon our city streets in fear.

In fact, back in the late 1990s, there was a group of Israeli school children who visited Baltimore during a school exchange program. When asked by a reporter if they would prefer to live in the U.S. or Israel, the children chose their homeland. The overwhelming reason – it’s too dangerous in the U.S.

Though this was before July 12, 2006.

When the Wells Run Dry…

As you’re well aware, on July 12, Israeli forces launched an offensive after two Israeli soldiers were kidnapped along Israel’s northern border.

Since then, Israel and Hezbollah have been trading rocket and missile barrages, threatening the majority of those living in the region that really just want to be left the hell alone and live in peace.

But extremism and tyranny will not let up. And as we sit in the comfort of our air-conditioned homes during a major U.S. heat wave and watch the catchy headlines and homemade videos of bombing aftermaths on Fox and MSNBC – the safety rug that we’ve become so accustomed to is slowly, and quietly being pulled out from under us.

The fact is, the entire Middle East is plagued with an implosive destiny that is doing everything it can to drag down the western world with it.

And if we continue to grip those foreign oil-slicked pipelines to stay afloat – the economic and social stability to which so many suburban and rural Americans are accustomed will slip right through our fingers.

In fact, without a strong, domestic energy infrastructure…stray bullets found in random office buildings will no longer be the domain of cities like Baltimore.

Think about it. How long do you think it would take for an oil-induced meltdown to wreak havoc on every square mile of this country? Or better yet – the entire free world? (Assuming it hasn’t already started)

I’m not trying to be dramatic here – but we’ve had our head in the clouds for a long time now. And despite the myth that we live in a civilized society – if the wells run dry, even temporarily – the sh@# will hit the fan. You can count on that!

Hell, just look at how people reacted last year when they couldn’t get their Christmas X-Box’s at Wal-Mart. Now imagine they’re not fighting over an overpriced computer, but rather medicines and baby formula…because the distributors don’t have enough diesel to move their delivery trucks!

Yes, our addiction is a dangerously strong one…as it is the slippery glue that holds our fragile infrastructure together.

So it’s no surprise that following the first working session of the G8 summit, a document on energy security was adopted. It emphasizes diversification of energy supply and demand and energy sources…energy saving and energy efficiency measures on both national and international levels…and deployment and transfer of clean energy technologies which can help tackle climate change.

Transportation also received its own section of the plan.

Specific actions include:

Providing incentives for consumers to adopt efficient vehicles, including clean diesels and hybrids.

Introducing efficient public hybrid and clean diesel transportation systems on a large scale.

Promoting diversification of vehicle energy systems based on new technologies, including significant sourcing from biofuels for motor vehicles.

Promoting wider use of modern technologies, materials and devices on traditional vehicles, leading to lighter, more aerodynamic and more efficient engines (absolutely perfect for our alternative engine stock) and other transport components (transmission, steering systems, tires, etc.).

Though my favorite section of the document is as follows…

A large-scale use of renewable energy will make a significant contribution to long-term energy supply without adverse impact on climate. The renewable solar, wind, hydro, biomass, and geothermal energy resources are becoming increasingly cost competitive with conventional fuels, and a wide variety of current applications are already cost-effective.

Of course, it’s no coincidence that this document appeared around the same time Secretary Bodman commented that this was the first time in his professional lifetime that the suppliers of oil in the world have really lost control of the markets. Bodman went on to say, “They are unable to turn the spigot and increase supplies, and therefore are unable to control oil prices.”

Yeah…no kidding!!!

That’s why…despite inflationary concerns, natural disasters and geopolitical tensions that continue to chip away at the market – one of the smartest places you can be right now, as an investor…is renewable energies. And it doesn’t matter which sector either. Solar, wind, geothermal, even ethanol.

In fact, we just recently discovered a new ethanol company that’s not only producing the domestic, renewable fuel – but it’s actually in a position to control the flow of ethanol.

And that’s the sweet spot!

You can make all the ethanol you want – but if you can’t move it, you can’t sell it.

Meanwhile, the U.S. government is doing everything it can to get this stuff pumping through every vehicle in the country.

And that means ethanol producers have to be able to not only ship it – but ship it quickly and continuously.

Currently there are only two companies that have the expertise, logistical relationships and clout to pull this off.

One is ADM (which I’m sure you’re familiar with), and the other is Alternative Energy Sources (AENS.OB). This one…well, you’ve probably never even heard of it.

But let me assure you – it’s a powerhouse!

In fact, I’m so convinced that AENS will ultimately control most of the ethanol flow in the U.S., I’ve written a special report outlining the specifics. It’s a free report. So if you’d like to take a look at it, and see why this is absolutely the one ethanol company to own right now, click here .

Until next time…

Jeff Siegel

Managing Editor, Green Chip Stocks