The Rising Value Of New Energy

Time To Overweight Renewable Energy

Frank Holmes, June 11, 2020 (Forbes)

“…[Despite the 88% spike in the West Texas Intermediate (WTI) oil price in May from $18.84 per barrel to $35.50,] global oil demand may never fully recover to pre-coronavirus levels…[T]his makes alternative and renewable energy producers even more attractive from a long-term investment point of view…Some see the rise of remote working as the biggest threat to oil demand going forward…[because about 45%] of each barrel of refined oil is used to make gasoline…And that’s before we factor in the growing popularity of electric vehicles (EV)…

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[2019 also saw] electricity generated from renewable sources such as wind and solar surpassed coal for the first time in over 130 years…U.S. coal consumption fell for the sixth straight year…while renewable energy consumption rose for the fourth straight year…Even in the age of President Donald Trump, who favors fossil fuels such as coal, major renewable energy projects in the U.S. continue to move forward…[Clean energy stocks have] already pulled ahead of traditional fossil fuel companies…The S&P Global Clean Energy Index was up almost 45% for the two-year period through June 5, compared to the S&P Global Oil Index (negative 29%) and S&P 500 Energy Index (negative 35%)…” click here for more

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