Oil & Gas Stocks
There are a number of reasons to invest in Oil & Gas companies, not least of which is the need for a bridge to a renewable energy future.
Put simply, renewable technologies are progressing, but can’t replace traditional energy quick enough to satisfy the world’s energy demand.
So while much is made of Electric Vehicles (EVs), battery metals, solar, wind and even nuclear power, Oil & Gas are two sources of energy that aren’t going to leave the mix anytime soon.
Take for instance the fact that by 2025, the number of new car sales that are EVs is expected to hit around 10%, before moving up to 58% by 2040.
That’s a relatively small amount of market penetration.
Also 2040 is still a long way off - and until then, we expect investment in Oil & Gas stocks to continue.
As a result, we think the death of Oil & Gas is largely overstated - meaning there could be some hidden gems out there with the right projects.
In fact, it's possible that if the shift to decarbonisation happens more rapidly than expected - it could even increase demand for gas in particular.
Grids were initially designed for a base-load energy based on year-round coal, and options for this base-load are still relatively limited in places that haven’t built large batteries to store the intermittent energy supplied by wind and solar.
Being selective with your Oil & Gas investments is crucial, and in this section you’ll find all our educational material on investing in Oil & Gas stocks.