John Licata is the Founder/Chief Energy Strategist of Blue Phoenix Inc. and the author of "Lessons from Frankenstorm: Investing for Future Power Disruptions", a 2013 Wiley e-book on the future of energy post Sandy. His ability to cross-pollinate idea generation and analysis of both traditional and unconventional global energy markets has been documented in the global media for north of a decade by the likes of Bloomberg, CNBC, BNN, Yahoo! Finance!, Reuters and Fox Business Channel.
John has over fifteen years of energy and metals research/strategy experience which has made him a highly sought out industry veteran for viewpoints related to advanced energy technologies and industries. Prior to launching Blue Phoenix Inc. in 2005, John held research and trading positions at Dow Jones, Salomon Smith Barney, BrokerageAmerica and on the floor of the New York Mercantile Exchange (NYMEX).
John graduated from Saint Peter's University with a B.S. in Economics and he received his M.B.A. from the Executive MBA Program at NYU's Leonard N. Stern School of Business.
He is a member of the Board of Directors for New York Energy Week and sits on the Regents Board for Saint Peter's University.
Lessons from Frankenstorm:
Investing for Future Power Disruptions
The world has been brought to its knees in recent years due to an increased amount of hurricanes, tsunamis and earthquakes which collectively have left tens of millions without power and derailed economic growth in the process. However, today weather is not the only threat to massive power loss. It's time to fight back before energy weaknesses and instabilities from disruptive weather patterns cause financial chaos around the world through cyberwarfare. In Lessons from Frankenstorm, you'll learn how to fight back.Overview: A look back at recent events (Fukushima, India blackout, Sandy here in the U.S., August 2003 blackout in Northeast U.S., etc.). Set up the case that something needs to be done, especially with warming temperatures (2012 was the hottest year on record).
What are threats? Focus here is on weather (temperatures, rising tides, global warming, dwindling water supplies which impact certain energy sources (i.e. fracking, biofuels), terrorism (cyberterror which may create a whole new investing sector in the very near future).
What can governments and utilities do? It could be good to focus on disaster recovery efforts, crisis management, legislation, planning and strategy AHEAD of next major storm or terrorist threats that could rattle global financial marketplaces. New legislation could lead to new asset allocation by investors, technology companies, utilities and private equity. Legislation (i.e. endorsing modern nuclear power, offshore wind, etc.) may also cause new alliances, joint ventures as a result.
Could Frankenstorm be used a global blueprint for energy innovation? Here focus on efforts seen in New York and New Jersey emerging from the darkness and ruin left by Superstorm Sandy through the real next generation energy technologies and themes that investors may want to focus on for the next decade (i.e. thorium nuclear reactors which China just announced they are moving toward—should the U.S. follow?).
Complacency is not the answer. Doing nothing and simply waiting for another major power outage that not only challenges our credibility as a superpower in a new world economy but could also cripple global market centers (maybe look at how slow Japan has reacted to Fukushima while Germany moved way too fast in my view to move away from nuclear power—something that has caused surging electricity prices).
From Yahoo Finance — June 11, 2013
Cyberattacks More Dangerous to Energy Grid Than Superstorms
[In fall 2012] nine million households on the East Coast lost power because of Superstorm Sandy, according to the U.S. Energy Department. And many of those households suffered outages lasting days or weeks rather than hours. More here including video...
John Licata Interview on CNBC — February 24, 2012
John Licata, Chief Commodity Strategist of Blue Phoenix Inc., discusses the outlook for global crude oil prices, how Iran's nuclear persistence will affect energy prices, the lack of refinery capacity in the Northeast, the potential for a more diverse energy basket which includes solar, wind, hydro and small modular nuclear reactors. He also tackles the need for more fuel-efficient transportation, especially electric vehicles.
Visit the author's business website at Blue Phoenix, Inc.