Trouble in Egypt spells trouble for global energy market

Although Egypt is hardly one of the Middle East’s primary producers of oil, now that the country finds itself in the midst of a political-military meltdown, we should begin to consider the short-term and long-term effects on neighboring countries and the global market.

Egypt controls the Suez Canal and Sumed Pipeline, two key sources of export/import. Luckily, experts are saying that a hiccup in the flow of oil through the country seems unlikely – good news for foreign investors.

However, those investors are keeping a close eye on Cairo, the Egyptian capital, where further violence could scare private equity right out of the country. What’s worse – violence could spread like a disease to neighboring countries, sending the entire Middle East spiraling out of control.

“In addition to the human toll, the violence and political turmoil in Egypt is beginning to affect investor sentiment," says Russ Koesterich, a chief investment strategist at BlackRock, the world's largest investment management corporation.

Investors are appreciative of the role Egypt’s $538 billion economy plays in keeping the volatile territory at bay. The worst case is a straight closure of the Suez Canal, which links the Mediterranean and the Red Sea. The canal transported 13% of the country’s liquefied natural gas (LNG) and 7% of sea-traded oil last year. A closure of the 101-mile long canal could send oil prices skyrocketing again - not only in the Middle East, but all across the world.

Another scenario involves terrorism. Sabotaging a single point along the 200-mile Sumed Pipeline, for example, would cut a strategic route for oil and gas exports to Europe and North America. The pipeline carries approximately 2.5 million barrels a day – that’s a lot of oil to just go missing from the global market.

The energy industry is also on the watch for terrorist plots against key instillations. Threats could force them to shut down and evacuate employees. That wasting time means wasted money. And who ends up fitting the bill? Why you, of course. Higher rates, premiums – you name it.

Few people even care to consider what happens if the Middle East goes completely crazy. Think Hollywood apocalypse. First the collapse of domestic governments. Ripples across the global market. Food and gas shortages. Terrorism the likes of which we’ve never seen. Nuclear retaliation.

Sure, you might think this all sounds a little paranoid, but in the globalized 21st Century, a single falling domino can topple the entire chain. Hopefully Egypt won’t prove to be that first domino.

Living off the grid: financially, spiritually, and environmentally responsible

Our modern world has jaded the population into believing we need certain things in order to survive. The internet, for one.  A cell phone. A car. But what if I told you a person could have all of these things, and still live off the grid?

It’s a trend that’s becoming increasingly popular in developed countries like the United States, where an estimated 750,000 Americans have been living without governance and dependent public utility for the better half of a quarter century. They grow their own food. They harvest their own energy. Cash means nothing to these people who’ve sworn a pact to uphold communal harmony. And so they trade. They cooperate and share and live off of the land. Some may call this way of life, ‘primitive,’ yet these self-reliant pioneers continue to lead free and happy lives.

Why break away from the government, you ask? Why live off the grid?

Financial, spiritual, environmental– people are driven to escape the norm for any number of reasons.  Nick Rosen, author of Off the Grid: Inside the Movement for More Space, Less Government, and True Independence in Modern America, says: "You can't get off all of the grids all the time. It's a question of which grids you choose to get off of and in what way and for how long. [But] going off the grid is not a game. It’s real life and a real choice for real people."

From a few months to a lifetime, people choose to break away from basic utilities, stay attached to what Rosen refers to as the "car, supermarket, or bank grid."

Sure, these people may escape society for personal reasons, but ultimately, they have a positive effect on the environment. A majority of off the grid communities are in areas where nature plays an integral role in social sustainability. "You become much more aware of the sun and the wind because you need it to power yourself," says Rosen, who goes on to explain that the average consumer is “consuming too much. One of the big motivations for off-grid living is a weariness of the consumer society. It's not necessarily anti-consumer, but post-consumer."

Think of all the unnecessary luxuries we enjoy. Three-car garages. Big-screen TVs. Air-conditioning. Even heated steering wheels in our cars! Rosen estimates that the average off-gridder uses about 20% less energy than the average U.S. household.

However, some people go off the grid to get away from the stress of urban living. Rosen claims that the “biggest motivation is a loss of trust in the government and the ability of social networks to look after us.”

That’s because the government is monitoring our emails and text messages. They’re patrolling the skies with killer robots. They’re forcing fossil fuels down our throats, not for the greater good, but because fossil fuels offer the highest return on consumer investment.

The best part is – you’re capable of much more than you give yourself credit for! In fact, you could escape the government’s stronghold with as little as a half an acre, "as long as it's the right half-acre,” says Rosen. “The era of 40 acres and a mule has been replaced by the era of a half an acre and a laptop and a solar panel.” Just enough to grow a few crops and harvest a few kilowatts. But ultimately, “the best way to get off-grid is to go off with others in a group of families, so each have half an acre and share resources and skills. One is tending livestock and one is growing vegetables, while a third is looking after the power supply for everybody else."

Many off-the-grid communes are actively seeking new members willing to relocate. "There's a huge generation of 1970s back-to-the-land movement people who are now getting pretty old and they're sitting on these huge tracks of land that can't be broken up,” says Rosen. "The idea of land trusts is being used as a way these older people can get some new residents to help look after them and then work on the land or take over part of the land as the older generation dies out."

NRGLab provides those looking to live an alternative, environmentally friendly lifestyle with the opportunity to own a carbon-free electrical generator. Weighing only a few pounds, the SH-Box is the most affordable and efficient option out there today. You don’t have to give up your Wi-Fi or iPhone or Benz after all.

If you’re interesting in going off the grid, or just joining in the independent energy revolution, visit nrglab.asia for more info on how you can come to own an SH-Box.