I’m still a data hog.
I try to track as much as possible — news trends, search trends, stock trends, political trends, pop culture trends… Not to mention all the data that comes with a website: clicks, bounces, traffic, shares, tweets, and more.
And then there’s the data of being a car and homeowner: payments, interest, utility bills, gas use, grocery spending, insurance premiums, health care copays and claims.
So in the now years-old tradition of sharing some of that cherished data, here’s my unabridged review of personal energy use for 2010.
Gas gets back to normal… almost
Here’s a recap of my gas habit for the past two years:
|
Year |
Total Spent |
Average Price |
Total Gallons |
Total Miles |
MPG |
|
2008 |
$2,185.47 |
$3.09 |
715.71 |
10611.3 |
14.83 |
|
2009 |
$1,947.18 |
$2.23 |
871.69 |
12707.5 |
14.58 |
Gas cost 28% less in 2009 than it did in 2008, thanks to recession-induced demand suppression.
What that means is I used 156 more gallons but paid $238 less.
In 2010, things got back to what should be considered normal for gas prices… almost:
|
Year |
Total Spent |
Average Price |
Total Gallons |
Total Miles |
MPG |
|
2010 |
$2,364.52 |
$2.76 |
856.65 |
12305 |
14.36 |
Gas prices averaged $2.76 last year. So in a complete reversal from 2009, I drove less and paid more.
I expect that to continue in 2011. Prices rose $0.50 per gallon from August through December, and are now firmly averaging above $3.00 nationwide.
We’ll see $4.00 by the time summer vacation rolls around.
To offset the pain at the pump, you’ll need to dance with the devil himself. Betting on higher oil and gas prices is the only way to hedge against them.
And because of continued contango in the futures market, you’d be better served to put your money in oil companies.
Why? Because even though oil finished 2010 at a 26-month high and pump prices averaged $0.53 higher than the year prior, the United States Oil Fund (NYSE: USO) actually went down 3%.
But oil ETFs that held oil companies — majors, drillers, rig renters — averaged 20% upside. That’s twice the return of the Dow last year.
And finding the right individual oil companies will prove even better this year as oil marches back toward triple digits.
Thrice as nice
If just betting on rising oil prices could’ve netted you twice the broad market performance, wait ’til you see what efficiency can do…
Last year I used 10,834 kWh of electricity, 611 therms of natural gas, and paid $2,346.30 for it all.
Here’s what getting meticulous about efficiency can do:
|
Month |
Electricity (kWh) |
Gas (therms) |
Bill Total |
|
January |
534 |
131 |
$219.67 |
|
February |
412 |
96 |
$166.48 |
|
March |
414 |
103 |
$168.76 |
|
April |
390 |
41 |
$108.52 |
|
May |
319 |
23 |
$85.14 |
|
June |
583 |
20 |
$119.07 |
|
July |
914 |
16 |
$160.69 |
|
August |
827 |
12 |
$143.73 |
|
September |
584 |
12 |
$110.04 |
|
October |
294 |
13 |
$71.26 |
|
November |
350 |
19 |
$84.11 |
|
December |
350 |
63 |
$125.18 |
|
Annual |
5,971 kWh |
549 therms |
$1,562.65 |
At 5,971 kWh, I reduced my electricity consumption by 45% year over year. My natural gas usage shrunk 10%. And I didn’t do all that much…
I continue to enjoy my utility’s Smart Energy Savers program, for which I get an $18.75 monthly discount (not applied in the table) during the summer for allowing them to cycle my air conditioner during peak events.
And I did the smart thermostat, light bulb switch, and bedroom space heater in 2009.
All I did in 2010 was get a bit more aggressive with the temperature settings, made sure all unused inside vents and doors remained closed, and pared back the water heater a bit. Didn’t spend a dime…
But at $1,562.65, I saved 33% on utilities over 2009.
That’s three times the return of the Dow.
About that Wall Street and Main Street thing…
They really are connected.
You just have to find the connections.
I earned 33% simply by focusing on the efficiency of my home. Fund managers would’ve killed for 33% last year.
Similarly, huge corporations are now realizing how much they can save by embracing efficiency — without spending that much capital.
So stocks that help companies save on energy bills are a good bet this year.
I’m talking grand scale stuff: the lights in Wal-Mart (NYSE: WMT) stores, the HVAC systems in McDonalds (NYSE: MCD)…
And the companies doing it are already leaving the broad market behind:
Three of those companies make solid state lighting, including light emitting diodes (LEDs). Coincidentally, my colleague Ian Cooper is profiting handsomely from LED stocks. His unique trading system tipped him off to that 30% jump you see in the chart above.
In 2011, take a moment to reflect on your ambitions and struggles. It’s likely Wall Street is facing the same…
And in many cases, what’s affecting your day-to-day can be exploited for gain in the legal Las Vegas we call the market.
Call it like you see it,
Nick
Editor, Energy and Capital
