After the OPEC countries announced oil production cuts last month, a global energy war unleashed.
As I explained yesterday, OPEC’s decision prompted an unfavorable response from the International Energy Agency (IEA).
While the IEA seeks to reduce the use of oil and gas around the world, OPEC is taking a different stance.
The world’s most powerful oil and gas organization believes both hydrocarbon and renewable energy projects are necessary to meet the world’s growing energy demands.
And since global demand for electricity is forecast to grow by 68% between 2021 and 2050, fossil fuels aren’t going away anytime soon.
So today, I’ll delve into the facts and the data. And I’ll show you that despite efforts to move into renewable energy, the majority of energy today is still produced by fossil fuels. I’ll also explain how in the realm of energy, there’s positive news on the horizon… and how it offers one way to profit from the energy crisis.
The Big Lie
For the past decade, politicians of all stripes, along with industry leaders, advocated for transitioning away from fossil fuels.
So naturally, they poured trillions of dollars into that transition.
With that kind of backing, you’d think the mix of electricity generation would change dramatically. But it hasn’t.
Since 2010, electricity generation is up 33% worldwide. Back then, about 67% of that generation was from what’s considered a dirty source: coal, oil, or natural gas.
Today, it’s not much different. Coal, oil, and natural gas make up about 62% of worldwide electricity production.
That’s because solar and wind projects can’t provide reliable baseload power. Baseload power is there when you need it. Day or night. Rain or shine. Windy or calm.
Regardless of the weather, it’s always ready to perform. And it’s why we continue to use coal, natural gas, and oil more than any other source of power generation.
You see, turning off one of the only reliable sources of consistent, available power is counterproductive.
As I showed yesterday, global demand for electricity is growing. Plus, our current electrical grid can’t handle the coming load. It can barely handle our current load as it is.
Which is why the war between the IEA and OPEC is so important. With oil majors spending less money on oil and gas projects, it doesn’t make sense to attack the foundation of what our world runs on. And with oil companies finding fewer sources of these fuels, we may very well be heading into an energy crisis.
This problem may also get worse before it gets better.
That’s in part due to the decommissioning of reliable baseload power from coal in the U.S.
Over the next 25 years, there are 132 coal power plants set to come offline in the U.S. alone.
Losing that reliable power without replacing it with another source of reliable power is a massive issue. Especially when you consider the continued increase in electricity demand.
But that’s just one problem.
Another is that our infrastructure doesn’t inspire much confidence. According to the American Society of Civil Engineers (ASCE), we don’t just need new sources of electricity generation. We need to upgrade the system we already have in place at the same time.
It’s why the ASCE says all three major components of the electric grid – generation, transmission, and distribution – have a massive investment gap. It estimates that by 2029, that gap will grow to around $197 billion.
And with the energy wars in full swing, it’s more important than ever to find solutions.
Help Is on the Way
There is some good news on the horizon.
The recent $1.2 trillion Infrastructure and Investment Jobs Act may help partially fill the gap.
Sure, we can argue there’s plenty of pork in the bill. But with $65 billion for new and upgraded power projects, it’s a decent start. More reliable power means less chances of massive power outages.
And all that spending means it’s creating some great moneymaking opportunities… if you know where to look.
That’s why my colleague, Nomi Prins, set out to get the latest intel from her contacts in Washington.
She’s an expert when it comes to uncovering investment opportunities with massive government support.
And based on recent calls with her top congressional contacts… Nomi already found what she calls a “once-in-a-century opportunity” to play this trend.
See, America’s energy infrastructure is getting an upgrade.
A new law titled S.1111 could unleash trillions of dollars into a new sector in the world of energy.
In fact, it could be the solution to America’s – and the world’s – energy problems. More importantly, it could bring peace to the current energy wars taking place today.
And only one firm in America has the federal license to produce it.
Nomi is going live in a special briefing on Wednesday, May 10 at 8 p.m. ET to reveal all the details you need to know about this energy technology. To learn more, sign up for her event with one click right here.
Regards,
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John Pangere
Senior Analyst, Rogue Economics