The goals of Green Tech v. Oil

People still have this huge misconception that the new “green tech” businesses will lead to cheaper oil. Disturbed by yesterday’s huge rise in crude oil, I ask people what are we going to do when gas goes to $5 a gallon. The response was surprisingly about investing more money and time into “green tech”.

Now I’m all for this new surge in green tech but do most people even know what green tech is all about? Green tech is the trend towards more environmentally-friendly technology such as electric cars or recycled materials. It also consists of finding an alternative source of energy or a renewable source of energy for the sake of keeping the environment clean.

The main difference between investing in green tech and investing in oil companies are their goals. The goal of green tech companies is to clean the environment for a better tomorrow while the goal of oil companies is to find more oil to meet the demand and hopefully lower prices.

While everyone can agree on lowering oil prices, one needs to understand the goals of any company they invest in. By investing in green tech corporations, that’s me saying “I hope this business will keep the environment clean and lower oil prices are only a bonus” while investing in oil companies is saying “I’m a selfish bastard who wants cheaper oil”.

~Kevin Xu

*Photo courtesy of Jonathan Gayman