35 years ago, oil was selling for around $30 a barrel. In July 2008, it hit an all-time high of $147.27 – and since then, it’s been in a 12-year, albeit choppy, downtrend.
In April 2020, it hit an all-time low and even traded negative for a day.
Today, the commodity sits at $42 a barrel.
So much has happened this year that the oil price war between Russia and Saudi Arabia that caused the 65% quarterly fall in prices seems to have been mostly forgotten about.
As top oil companies search for alternative ways to make money, the answer is clear: renewable resources.”
The world’s seventh largest oil company, BP PLC (NYSE: BP), with a $78 billion market cap, recently announced that it will pump the brakes on oil and gas production and pour billions of dollars into clean energy.
It seems that BP sees “the writing on the wall.” Just ask the company’s chairman, Helge Lund. He expects that the demand for fossil fuels will fall by 75% over the next 30 years, and he’s not going to let BP get left behind.
With fossil fuels headed down, globally, we are seeing an increase the demand for renewable energy. In the U.S. alone in 2018, 11% of energy consumption was renewable. This is expected to grow by a whopping 24% in the next ten years.
Climate change is causing people to look at cleaner energy options, and big oil companies are feeling the heat.
Gas giant Saudi Aramco used to be the largest company in the world. Now, it has fallen behind Apple Inc. (NASDAQ: AAPL). The stock price has dropped over 6% this year with plummeting oil prices.
So, is it time to dump oil stocks?
Not completely. We can still profit on energy – we just need to shift our thinking.
Here are six opportunities to profit on renewable energy…