Despite recent excitement over the development of non-traditional energy sources in the United States, demand for energy is set to outpace worldwide production for the foreseeable future. Urbanization of agrarian societies, expansion of access to electricity in developing nations, and continued proliferation of automobiles are expected to continue to create a significant worldwide need for energy in all of its forms.
Brian Henderson, President of Cavanal Hill Investment Management (Photo: Business Wire)
Evidencing these trends, China is planning to move 250 million people from rural areas into cities in the next 12 years, which will create ten new cities the size of Shanghai. 1.2 billion people are currently without electricity, and the United Nations has made it a priority to rectify this situation. And the International Transport Forum projects that the number of automobiles worldwide will increase dramatically, from 1 billion vehicles today to 2.5 billion in 2050.
Against this backdrop, Cavanal Hill Funds complex has filed a registration statement with the SEC indicating its intent to offer the World Energy Fund (the Fund) so investors can take advantage of what some believe is the coming end of cheap energy. Cavanal Hill Investment Management Inc., the advisors to the Fund, is strategically based in the epicenter of the U.S. energy industry. From this vantage point, Cavanal Hill has the expertise and know how to understand the energy industry and its influence on global economic growth and development.
Brian Henderson, President of Cavanal Hill Investment Management, states, “We are standing on the cusp of the most dramatic increase in energy usage the world has ever seen. We believe crude oil, natural gas, biofuels, renewables, and even coal will see exponential demand growth in the coming years. In addition, all of the ancillary energy plays such as transportation, energy service, and infrastructure are likewise poised for dramatic and sustainable growth. Accordingly, we believe the launch of the Cavanal Hill World Energy Fund is timed to provide investors with a flexible and versatile platform to benefit from these trends.”