Over the last several years, politicians have been grappling with the need for sustainable energy. As this discussion has become rather commonplace, investors have become immune to the discussion. Ignoring the possibilities may be an error as there are many ways to profit in the energy sector. As an average investor, oil is often the thought where energy is concerned. There are, however, many forms of energy that may offer profit potential.
The “buzz words” should first be thrown out the door. As past posts have noted, we are still a fossil fuel economy which, regardless of what may be said, is not going to change any time soon. Environmentalists may say what they want but, as an investor, money is made where the money is spent.
Buy low, sell high. This may seem trite but it works. In this regard one may want to consider natural gas. It has been scraping along the bottom of its price range of late but does appear to have a bit of movement as the winter season approaches. Texas and southern mid-west fields have been spoken about in past posts, but distribution (pipelines) may be the real segment to consider.
Although many may chastise, lumber as a heating source is another area to consider. Commodity pricing in this area is difficult but buying and holding may be an option for the not so faint of heart. Another energy idea is geothermal. Lead-time in this area is difficult and infrastructure is a bit of a process. This energy source, however, is a long-term cash cow as it gets up and running.
Oil imports may be the topic of choice where the politicians are concerned, but not where the investor is concerned. There are options from new battery technology to biomass which offer profit potential. The informed investor addresses the entire range of options. Energy is a reality and one where profit potential is large.