The Truth About The Green Energy Fantasy You Need To Know
Invest in what people hate: oil, gas, and coal.
The world is obsessed with "green energy." Politicians promise a future powered by wind and solar. Activists demand an end to the use of fossil fuels.
But the reality? Oil and coal continue to dominate the energy sector.
Oil and coal power economies, create jobs and fuel economic growth. They’re not going anywhere.
Here’s the truth about the green energy fantasy you need to know for your investment portfolio.
Problem: The Great Green Energy Illusion
Politicians and activists promote green energy while ignoring reality.
1. Fossil Fuels Still Dominate Global Energy
Despite decades of hype, Our World in Data shows that renewables supply less than 15% of global energy and just under 12% in the United States.
Oil, coal, and natural gas make up the majority of the global energy supply.
2. Renewables Can’t Replace Fossil Fuels
Solar and wind are unreliable. The sun doesn’t always shine. The wind doesn’t always blow. You may live in the wrong climate for wind and solar to make sense.
Germany is a leading country in the European Union that continues to strive to achieve its renewable energy goals. However, oil, natural gas, and coal remain its primary energy sources.
3. The Hidden Costs Of "Green Energy”
"Whatever you subsidize, you get more of." - James Cook.
The government will prop something up, even when it doesn't work.
Renewables need massive government subsidies. Without government support, there's little demand for green energy.
Renewable energy companies have closed once they stopped receiving government subsidies.
Solar Insure writes:
"2024 has brought immense challenges, with higher interest rates, tighter financing, and adverse policy shifts in key states contributing to over 100 solar bankruptcies based on our industry data, a number unseen before in our almost 20 years in the solar sector."
According to Reuters, the United States government increased government subsidies to the renewable energy sector to nearly $16 billion a year.
Oil, gas, and coal companies remain profitable without government handouts.
Key Point: The "energy transition" is a marketing and PR term. Fossil fuels still run the world.
Solution: Why Oil, Gas, And Coal Will Remain Kings
Renewable energy receives all of the marketing, despite many companies filing for bankruptcy and closing. Traditional energy companies continue to rake in profits and provide energy to the world.
1. Cheap, Abundant, And Reliable
Fossil fuels are the most cost-effective energy sources.
A single barrel of oil contains 1,700 kWh of energy. Oil provides far more energy than batteries and solar.
Coal plants operate 24/7. Wind and solar rely on the weather conditions.
Countries like China, India, the United States, and many others continue to prioritize practical, affordable, and abundant energy over politically correct climate goals.
2. Technology Makes Fossil Fuels Cleaner
Fracking revolutionized U.S. oil production.
Carbon capture could make coal cleaner.
The idea that fossil fuels are "dirty and outdated" is false. It's a marketing slogan used by green-energy advocates against traditional energy.
Innovation keeps the energy sector competitive.
3. Global Demand Keeps Growing
The oil demand is nearly 100 million barrels per day. The world has almost 1.7 trillion barrels of oil reserves.
Renewables can’t keep up with the world's energy demand.
4. Energy Independence Means National Security
Countries that control and produce their own oil and coal don’t rely on other countries for energy.
The United States is the world’s leading oil producer because of fracking.
Fracking is an innovation in the oil and gas industry that enables the extraction of more oil from underground sources.
Innovation and independence are real power.
Key Point: Fossil fuels win on cost, reliability, and geopolitics.
Why This Matters For Your Investing Success
Investing is about being pragmatic, understanding geopolitical and market trends, and finding undervalued companies in the stock market to generate a return on investment (ROI).
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