The following video is part of our "Motley Fool Conversations" series, in which Fool contributor and personal finance analyst Dan Caplinger discusses topics around the investing world.

In today's edition, Dan looks at Chevron (NYS: CVX) in the latest installment of a Motley Fool series in which we look at how each Dow Jones (INDEX: ^DJI) stock affects the world-renowned blue chip average. There are some idiosyncrasies in how the Dow Jones is calculated, and Dan explains how Chevron ends up having a bigger impact on the average than its fellow energy rival in the Dow. He also looks at why the Dow only has two energy stocks and considers some of the other energy powerhouses that might get an invitation to the Dow at some point.

The energy industry has a lot of potential, and we've got one energy stock idea that could knock your socks off. Read about it right here in The Motley Fool's special free report on the energy industry and its best prospects. It's free, but only available for a limited time, so click here today.

At the time this article was published Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool owns shares of Chesapeake Energy. Motley Fool newsletter services have recommended buying shares of Chevron and Chesapeake Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


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Gumby

The real problem facing our hydrocarbon industry is that we are unable to consume more on a daily basis because of global climate issues. It doesnt matter how competitive they are and that we can not afford alternate energy. It is the limit that we can consume hydrocarbons because we are already generating so much heat into the atmosphere from combustion on top of carbon emissions. Alternate energy is thermal neutral especially solar because photovoltaics capture sunlight (heat) and return same amount of heat when used. Hydrocarbons is sequestered heat and carbon accumulating underground then released much faster . We have to establish how much heat we can generate that our atmosphere can handle without undue disruptions in weather patterns or temperature patterns. We forget about thermal pollution. 7 billon people lives on earth. While it is possible for hydrocarbon industry to grow with replacement of firewood used by most people (both wealthy and poor) on Earth, I am not sure it is more economical that way than using alternate energy that can be installed virtually anywhere. We are already providing different new stoves that use less firewood to the poor people as a stop gap measure. We are really scrambling to cut down on the heat and carbon generation based on hydrocarbons including firewood and coal. Investors are not helping much with alternate energy becasue they do not see profit opportunities there yet despite the clear fact that we want lower hydrocarbon prices.. The only way out is to tax hydrocarbon products with the revenues earmarked for massive alternate energy projects . Hydrocarbon taxes is economically possible only if we continue to reduce use of hydrocarbon which will also mean declining tax revenues in the future.. At the end of the day, we will have a huge base of alternate energy production and hopefully be able to be financially sustainable on its own a few decades later. I believe it will even with continued smaller subsidies. Hydrocarbon production will have to be suppressed forever but will still be here in much smaller quantities as long as our atmosphere can handle it. We can no longer plan our economy based on ever growing consumption of hydrocarbons ranging from coal to nat gas and oil. We simply cannot. it will be a dog eat dog competition for the hydrocarbon industries fighting for the fininte market going forward. Our alternate energy industry will take over the future growth in energy production that our economy demand to keep most people working . Germany and Italy already installed 30 gigawatts of solar and unknown amounts of wind while America just completed our first gigawatt or two here but have more gigawatts to complete to 2015 which still doesnt amount much . China are busy exporting solar without using them for their own consumption as they seem to prefer coal. We are still happy to export coal to China to make up their shortfal. Our enviromentalists are sitting on their hands.

June 04 2012 at 12:35 PM Report abuse rate up rate down Reply