Stocks Pull Back, As Price Of Oil Rises Amid Unrest In Egypt

The knock-on economic opportunities associated with developing, transporting and consuming energy are widespread and have drawn eye-popping amounts of private equity investment in the past few years. “That opportunity has the private equity industry salivating. PE funds have raised $157 billion since 2009 to invest in energy, according to data from intelligence firm Preqin. And they’re in the middle of raising even more, with nearly $32 billion collected by 33 funds this year. Energy-focused PE funds that launched between 2002 and 2011 average net returns of nearly 14 percent annually, versus 9.5 percent for the industry generally, according to Preqin.” [CNBC]

EIA Chief Adam Sieminski recently spoke at the Deloitte Energy conference in Houston where he offered 5 key long-term energy takeaways. [Fuel Fix]

A study using two detailed scenario models of utilities showed that ratepayers are less likely to bear negative impacts from rooftop solar than investors. “They found that a 2.5% increase in PV penetration led to an almost negligible increase in rates, with stronger impacts on shareholders. The SW utility’s return on investment (ROE) dropped 2 basis points and earnings were reduced 4%. Though the reduction to ROE was stronger in the NE, 32 basis points, it also produced a 4% drop in earnings…The author’s concluded that increased PV penetration, alone, will probably not cause utilities to go into a ‘death spiral’ of rate hikes, prompting further customer departures.” [CleanTechnica]

And high drama on the Senate floor last night ended without the passage of a bill to approve construction of the Keystone XL oil pipeline project. The republicans are expected to bring a similar measure before the Senate next year once they have full control. [Take Your Pick!]