In the beginning of the resource bull market, all commodities were created equal. They all rose together, with the exception of a few products like aluminium and rubber, which lagged the rest of the group. Now, things are different. Call it the great energy sorting.

What does that mean? Investors are going to have to begin considering the embedded energy costs in tangible goods. Everything in life takes energy, from making your scrambled eggs in the morning to smelting aluminium. Some resources are more energy intensive than others.

Take the Mexican stand off between BHP Billiton (ASX: BHP) and Rio Tinto (ASX: RIO). BHP feels its exposure to coking coal, oil, and gas gives it an earnings advantage over Rio. ... Read full article