'Megadrought' Looms In American Southwest, NASA Warns
Could water become the next exchange traded commmodity?
It is widely accepted that around 25% of the world’s population already lack adequate water for drinking and sanitation.
In terms of the metrics, around 66,245 cubic metres of water is consumed every second. This compares to a mere 155 cubic metres of oil consumed per second. Moreover, if we consider the UK alone, the amount of water consumed per capita per day has been growing at 1% per annum every year since 1930 and this trend is not only showing no sign of abating but is echoed across the majority of first world nations.
By 2000, the available fresh water available per capita was around 7,800 cubic metres. This compares to 9,000 cubic metres in 1989. We have spent vast resources trying to find alternatives to oil, yet there appear no known substitutes for water.
As the global population is expected to reach 8bn by 2025, the available fresh water per capita is expected to fall to 5,100 cubic metres. While there has been technology to try and desalinate water, no technological innovation can replace this precious commodity.
Given these statistics, is it such a leap to assume that with a finite supply, increased demand for water could send prices for the commodity soaring. We have witnessed oil shocks- could we be headed for a water shock?
Desalination has been offered as a potential solution and it is true that in the last fifteen years, costs have declined by around 60%. It is however a highly energy intensive process, which going forward will play into a higher future marginal cost of water.
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Investing in Water Security: What Investors Need to Know. Thomas Schumann explains why water is an asset class for the future.
“Water security is the most important item on the agenda of every humanitarian and international institution in the world,” states Thomas Schumann, of Thomas Schumann Capital LLC, the manager of a water security fund which advances global water security and pursues long-term capital appreciation. However, for all of the attention that humanitarian and international institutions pay to water security, this market has been overlooked by investors in recent years. Schumann is setting out to change this by educating one investor at a time.
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De nieuwe Nieuwsbrief van de Dutchwatersector is uit met daarin onder meer:
- Nijhuis to deliver largest pre-fabricated flotation unit to oil refinery in Kazakhstan
- Delta Academy: forty students learn to deal with complex river delta issue
- Events in retrospect: Adaptation Futures 2016, Water Tech Fest and IFAT München
- PureBlue Water develops effective removal of pharmaceuticals
- China commits to strengthen collaboration on wetlands
- Smart Information Solutions for Water & Climate
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Investing in Water Stocks 101 The World's Most Important Commodity
Last week, I was up on my soapbox urging you to own gold. But after it moved over 5% higher in the past seven days alone, it's time to just sit back and watch our money grow.
As I mentioned to you last weekend, I think we'll have a great selling opportunity for gold and precious metal stocks next week. And I'll get back to you on that selling opportunity when the time comes. But in the meantime, I want to take some time to talk about a more important commodity: water
Gold is nice to have. But water is absolutely vital.
All life on Earth is dependent on water. And there simply is no other alternative.
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Mining corporations in the Mexican state of Zacatecas use 14 million gallons of water annually, which is expected to cause increasing scarcity in the coming years.
A Canadian mining giant sucks up more water than any other in the north-central Mexican state of Zacatecas, where mining corporations use more water than the entire local population and concerns are rising about highly unequal access to the scarce and precious resource, according to a study reported by the Mexican daily La Jornada on Tuesday.
According to the report completed by researchers from the Autonomous University of Zacatecas, the Mexican water authority, known as Conagua, has given the greenlight to national and transnational mining companies operating in Zacatecas to use over 14 million gallons (nearly 56,000 cubic meters) of water per year.
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