on 05-09-2016 01:14 PM
We have just under 10% of the AMP Capital Global Infrastructure Securities fund (Also available in ETMF form as GLIN AU), invested into Water Utilities around the world. Water is becoming a more important and more valuable resource and in most countries is not even metered, unlike other resources such as oil, gas and electricity.
Here are a few interesting facts about water...
- It takes more than 2,400 gallons of water to produce 1 pound of meat, while growing 1 pound of wheat only requires 25 gallons. You save more water by not eating a pound of meat than you do by not showering for six months!
Below is from a zerohedge article back in 2014. So it's a little bit out of date, but it gives a good overview of the situation.
- By the year 2030, the global demand for water will exceed the global supply of water by an astounding 40 percent
#1 Right now, 1.6 billion people live in areas of the world that are facing "absolute water scarcity".
#2 Global water use has quadrupled over the past 100 years and continues to rise rapidly.
#3 One recent study found that a third of all global corn crops are facing "water stress".
#4 A child dies from a water-related disease every 15 seconds.
#5 By 2025, two-thirds of the population of Earth will "be living under water stressed conditions".
#6 Due to a lack of water, Chinese food imports now require more land than the entire state of California.
#7 At this point, the amount of water that China imports is already greater than the amount of oil that the United States imports.
#8 Approximately 80 percent of the major rivers in China have become so polluted that they no longer support any aquatic life at all.
#9 The Great Lakes hold about 21 percent of the total supply of fresh water in the entire world, but Barack Obama is allowing water from those lakes "to be drained, bottled and shipped to China" at a frightening pace.
#10 It is being projected that India will essentially "run out of water" by the year 2050.
#11 It has been estimated that 75 percent of all surface water in India has been heavily contaminated by human or agricultural waste.
#12 In the Middle East, the flow of water in the Jordan River is down to only 2 percent of its historic rate.
#13 Due to a lack of water, Saudi Arabia has essentially given up on trying to grow wheat and will be 100 percent dependent on wheat imports by the year 2016.
#14 Of the 60 million people added to the major cities of the world every year, the vast majority of them live in deeply impoverished areas that have no sanitation facilities whatsoever.
#15 Nearly the entire southwestern United States is experiencing drought conditions as you read this article. It has been this way for most of the past several years.
#16 Thanks in part to the seemingly endless drought, the price index for meat, poultry, fish, and eggs in the U.S. just hit a new all-time high.
#17 As underground aquifers are relentlessly drained in California, some areas of the San Joaquin Valley are sinking by 11 inches a year.
#18 It is being projected that Lake Mead has a 50 percent chance of running dry by the year 2025.
#19 Most Americans don't realize this, but the once mighty Colorado River has become so depleted that it no longer runs all the way to the ocean.
#20 According to the U.S. Geological Survey, "a volume equivalent to two-thirds of the water in Lake Erie" has been permanently drained from the Ogallala Aquifer since 1940, and it is currently being drained at a rate of approximately 800 gallons per minute.
#21 Once upon a time, the Ogallala Aquifer had an average depth of approximately 240 feet, but today the average depth is just 80 feet. In some areas of Texas, the water is already completely gone.
#22 Approximately 40 percent of all rivers and approximately 46 percent of all lakes in the United States have become so polluted that they are are no longer fit for human use.
#23 Because of the high cost and the inefficient use of energy, desalination is not considered to be a widely feasible solution to our water problems at this time...
The largest desalination plant in the Western Hemisphere is currently under construction in Carlsbad in San Diego County at great expense. The price tag: $1 billion.
Right now, San Diego is almost totally dependent on imported water from Sierra snowmelt and the Colorado River. When the desalination plant comes online in 2016, it will produce 50 million gallons per day, enough to offset just 7 percent of the county’s water usage. That’s a huge bill for not very much additional water.
#24 We have filled the North Pacific Ocean with 100 million tons of plastic, and this is starting to have a very serious affect on the marine food chain. Ultimately, this could mean a lot less food available from the Pacific Ocean for humans.
#25 One very shocking U.S. government report concluded that the global demand for water will exceed the global supply of water by 40 percent by the year 2030.
As the demand for water increases, I wonder how long it will be before water does become more valuable than oil...