Energy is a great sector to investment

By Janis Gough

Energy affects our daily life in almost every way. When the energy price is high, it shows up in the grocery store prices. It shows up in the gas you pay for to drive to the grocery store. This super-cycle might decide if you buy an electric vehicle or a car with better gas mileage. It may determine if you fly somewhere far away for vacation or stay closer to home. The energy was the bestperforming asset we’ve seen recently...

The fate of an entire continent lies in the balance thanks to this crisis, which could topple governments. This facility is built from 89,000 tons of structural steel.

It uses 400 miles of pipe to stretch from New York City to Cleveland, Ohio.

Every day, a liquid form of natural gas is loaded up on huge tanker ships at places like these... shipped to locations like Germany, France, and China.

As you can see, there’s lots of heavy machinery all around. The temperature of the liquefied natural gas in these pipes is negative 260 degrees. Shipping liquefied natural gas, a significant new energy source, to nations worldwide, including Germany, France, and China.

If you haven’t guessed by now, this “1,000% Windfall” opportunity has to do with the energy markets...

That’s 20 times more returns than conglomerates, the second-best sector...and 40 times more than the third-best sector, retail.

Meanwhile, every other sector in the stock market LOST money, with technology stocks losing more than 20%... So it’s no wonder the world’s top investors and Wall Street “insiders” have been piling into this sector... Billionaires like Stan Druckenmiller loaded up on energy stocks last year, and David Tepper has invested $338 million into energy. Carl Icahn – one of the 50 wealthiest men in the world – put $661 million into power. And Warren Buffett, the world’s most significant investor, invested a mindblowing $38 billion in energy last year...

The immediate problem is simple: There is not enough fuel and, therefore, not enough electricity, so prices have skyrocketed for both. To a large extent, this is a result of decreased Russian exports of oil, natural gas, and coal, which have been hit by western sanctions and other policy efforts to curb Russian revenues...”Natural gas is a significant new energy source for nations worldwide, including Germany, France, and China. This problem isn’t going away anytime soon. And the CEO of Saudi Aramco, the largest oil producer in the world, recently issued a dire warning about oil prices, saying they could quickly spike. According to this CEO, one of the most influential men in the energy market...

“The world should be worried. The fate of an entire continent lies in the balance. There’s an energy crisis in Europe due to sanctions against Russia and its retaliation. This is a big problem, of course. While Europe has had some success in quickly finding other energy sources, and it’s fortunately been a mild winter so far, this still may be the most significant economic problem in the world right now. The energy problem is more important than inflation because high energy prices are a big culprit in the higher prices we’ve seen at the grocery store lately. And energy is a significant source of the political problems we see with Russia and China.

Every person on earth needs energy. Energy is as essential as food and water for every human. There is a limited supply of energy sources, from fossil fuels... to nuclear... to renewables. And these resources often exist in a limited number of places but not others. These energy sources are spread all over the planet. Somehow we must get these energy sources into the power plants and gas tanks to power the global Economy. It comes down to supply and demand and getting the energy where it needs to be. If this supply and demand dynamic gets screwed up, energy prices rise because supply is not meeting demand.

Consider the Strategic Petroleum Reserve. This is an emergency stockpile of crude oil maintained by the United States Department of Energy. It is the largest publicly known emergency supply in the world. Unfortunately, because of this energy crisis, the Biden Administration has sucked out this strategic reserve to its lowest levels since 1984. Over the past year, the account has been down 36%. It’s now going to have to be filled back up!

The total capacity of the underground facilities is 714 million barrels. Thus, if they wanted to fill it up, we’d need about 324 million more barrels of oil. If we assume $80 a barrel... and if we filled it, that’s $25 billion. This should give you a sense of the scale of the shortages we’re dealing with here. If oil goes up to $160 a barrel, it’ll cost double that: $50 billion...

Energy isn’t being produced to scale globally, and energy needs to be supplied to where it needs to go.

S i n c e 1 9 7 8 G o u g h I n s u r a n c e & F i n a n c i a l S e r v i c e s h a s h e l p e d m a n y c l i e n t s w i t h S o l u t i o n s i n a l l c a t e g o r i e s o f I n s u r a n c e R e t i r e m e n t a n d E s t a t e P l a n n i n g & L o n g T e r m C a r e P l a n n i n g E x p e r i e n c e d a n d K n o w l e

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This applies to oil, gas, green energy, and this energy, liquefied natural gas, or LNG. The exciting thing for investors is that LNG remains a “secret corner” of the energy markets. Consider that 25% of the EU’s energy consumption comes from natural gas. Most Americans are clueless about what a goldmine this LNG could be for investors right now! Due to the Russian invasion, their natural gas is almost running out. The U.S. has more LNG than all other countries, Literally in our backyard. Natural gas can also power the electrical grid, power plants, and factories. Now keep in mind that the U.S. is overflowing with natural gas.

We have nearly 3 trillion cubic feet of natural gas. EU has None! EU’s energy consumption comes from natural gas. Right now, Liquifying the natural gas we have in America makes it possible to put it on ships and send it to Europe. As a result, America is positioned to transport cheap American shale gas worldwide through LNG. America became the single largest exporter of LNG, displacing long-time front-runner Qatar. If European countries don’t get this energy from our LNG, their economies could crash and burn. There is also massive demand from China, and this energy demand is making Americans much money. We are also building a fully integrated LNG business, which means it will be the first integrated LNG business in America when it’s entirely up and running.

That means it’ll control every aspect of the business. It will drill for natural gas, funnel it through a pipeline to its LNG facility, then ship it to places like Europe. Liquefied natural gas is a game changer for the world. It has already paid off with ten times returns for many investors who got in early. And I’m forecasting the same kinds of gains from the energy markets very shortly.

Janice Gough is a Financial consultant located at 1111 E. Tahquitz Cyn. Way, Palm Springs, Bldg.#120. For a complimentary review, call on us at Janice@GoughFinancialSvcs.com or phone at (760) 251-7724 or (650) 200-8291(mobile)