We’re in the early stages of a global energy crisis.
Gasoline prices are at a seven-year high.
Surging natural gas prices will make it 30% more expensive to heat your home this winter.
And these high costs aren’t going away.
Bank of America expects oil to reach $120 per barrel in 2022. That’s more than 50% higher than its current price.
Natural gas forecasts aren’t as grim. But prices should only fall slightly next year.
And these scenarios stem from one thing: We have a supply problem.
Energy Companies Are in No Rush
The number of operational oil and gas rigs is down 42% from a year ago.
Without more drilling activity, supply will remain limited, and prices will stay high.
Higher prices typically lead to a surge in drilling as companies aim to cash in.
But energy companies aren’t in a hurry to bring more supply to the market like they were in the past.
They have a sour taste in their mouth after demand dried up during the COVID lockdowns.
The lack of demand caused the S&P 500 Energy Index’s earnings to plummet.
They nosedived from $7.30 per share to negative $46.66 per share in less than a year.
So, now, energy companies are being cautious about adding more supply to the market.
A Cheaper Way to Power Our World
To curb fossil fuel price increases, governments could beef up subsidies.
But they already spend over $500 billion per year on fossil fuel subsidies.
Plus, they want to reduce the world’s reliance on fossil fuels.
Earlier this month, the U.S. and 19 other countries pledged to stop financing fossil fuel projects by the end of 2021.
Instead, they’ll fund renewable energy projects.
Even if it means higher prices, there’s no way governments will encourage the use of fossil fuels.
But renewable energy is already cheaper than fossil fuels for two-thirds of the world’s population.
As new data comes out, I expect this number to be even higher.
Plus, I’m almost certain renewable energy tax credits will be extended in the future.
If you factor tax incentives into the mix, renewable energy gets even cheaper.
The Future of Renewable Energy
Lower costs are just one reason why Ian King and I are excited about the future of renewable energy.
And you now have the chance to get on the ground floor of a new energy revolution.
Analysts expect this niche sector to attract $16 trillion in investment over the next decade.
Triggering 1,800% growth from where it is now.
And one company is at the forefront of it all.
Research Analyst, Strategic Fortunes
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Nov Inc. (NYSE: NOV) is an oil and gas drilling equipment producer. It is up 8% today along with several other oil and gas stocks as various governments and organizations look to increase oil output to bring down recent high prices.
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Dollar Tree Inc. (Nasdaq: DLTR), the discount retailer, is up 7% this morning after beating earnings estimates for Q3 and announcing that it would raise prices for most items in its stores to $1.25 by 2022.
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