When a major artery supplying Europe with key energy supplies was cut off, the global energy landscape changed forever.
The Nord Stream pipeline that spanned 750 miles carried as much as 170 million cubic meters of natural gas daily from Russia to Europe.
That’s 35% of Europe’s total gas imports from Russia.
But last September, an underwater section of the pipeline suffered a catastrophic explosion… severing any future supply of gas.
Swedish authorities said it was a deliberate act of sabotage. Investigators, though, still don’t know who to blame.
Regardless of who was at fault, the explosion demonstrates two truths…
First, energy security is fragile. Just one pipeline can make the difference between adequate energy supplies or catastrophic shortfalls.
And second, depending on unstable foreign nations for energy supply is a recipe for disaster. The U.S. learned that lesson during its own energy crisis in the 1970s. Now, Europe is facing the same consequences.
That’s why the global energy landscape is shifting after the Nord Stream explosion.
Europe is scrambling to replace badly needed energy supplies. And it’s unleashing a massive wave of spending set to benefit an often-overlooked corner of the energy market…
The Companies Delivering Energy Security
When it comes to sourcing energy needs, nations poor in natural resources have no choice but to turn to foreign powers… and hand over their energy security.
Now, renewable energy can be generated almost anywhere the sun shines and the wind blows. But it will take an estimated three decades and $92 trillion for fossil fuels to be completely phased out.
That means a bridge – or a dependable energy supplier – is needed while new sources of power generation evolve.
It’s a role that’s seeing the U.S. emerge as a new energy superpower. And it all has to do with natural gas.
You see, the U.S. is home to the largest natural gas fields in the world. Innovative technologies have made these reserves more accessible, and at a lower cost.
That’s leading to record high U.S. production of natural gas. Here’s how Inside Wall Street’s editor Nomi Prins put it last week:
If Texas were a country, it would be the world’s third-largest natural gas producer.
Just take a look at the chart below. It shows domestic gas production. Since 2010, production has soared by 68%.
But all that natural gas is useless if you can’t get it from point A to point B.
You need critical infrastructure that processes, moves, and stores natural gas.
That’s where “midstream” companies come in. They gather natural gas extracted by “upstream” drilling companies and send it “downstream” for final use.
And right now, midstream energy companies are some of the best opportunities that the stock market has to offer.
Profit with Midstream Energy
With Russian energy supplies cut off, European countries need a reliable and cheap source of gas more than ever.
And with U.S. natural gas production at record levels, North America is going to fill that void.
But as U.S. exports increase, so will the need for infrastructure to transport that gas.
That’s why investment in midstream companies is expected to hit $430 billion just this decade.
That includes pipelines to carry natural gas to where it’s needed, whether that’s U.S. power plants or special terminals for exports.
And the demand for energy infrastructure is driving a surge in midstream profits. It’s making midstream companies’ valuations incredibly attractive.
The entire midstream energy sector is trading near its cheapest levels of the past five years. And midstream companies distribute most of their income in the form of dividends. In fact, they have one of the highest dividend yields of any asset class.
To profit from the new wave of investment to secure our energy future, consider the Global X MLP & Energy Infrastructure ETF (MLPX). It holds companies that move and store energy products like natural gas.
Best regards,
Clint Brewer
Analyst, Rogue Economics
P.S. There’s no denying it. Right now, we’re seeing a massive realignment in global energy powers.
And it’s unleashing new, investment opportunities… In fact, my colleague Nomi Prins just made her next major discovery in the energy sector.
She has identified a tiny $2 firm with a virtual monopoly over a $1 trillion energy subsector.
This firm is still flying under the radar for now. But on August 1, that’s all about to change…
If you want to get in before then, make sure you watch this video presentation Nomi just released by clicking here.