Tomorow’s Energy

In the future, as the global population grows, energy will grow in demand as well. China and India have growing middle classes that want/use cars, computers, food etc. All this costs energy. Many industries don’t do well in certain economies, but energy should be a constant consistent stock for the coming centuries.

Oil, natural gas, solar, wind will all compete for dominance. Oil companies, such as Exxon Mobil should do well for the foreseeable future as Oil continues to be necessary and vital energy source for society. Natural gas is becoming an ever more important source of energy ever since Oil skyrocketed up in price in 2006-08. Fracking, even though politically and environmentally unpopular (and possibly very dangerous) is one of the reasons the US economy has grown in recent years. Chesapeake Energy Corp is one of the largest natural gas companies in the world. It’s revenue has grown for each of the last three years.

Clean energy (solar, wind, etc) is becoming ever more viable every year. General Electric is probably the largest clean energy company. The heavy investments they have made into renewable sources not only mean that their future is bright, but the US government gives them very large tax subsidies to help them with the progress.

The thing is, I don’t know which of types of energy will win in the end. If you were to invest in all three Exxon, Chesapeake, and GE, then you should have all your bases covered. Oil is not only not decreasing in use around the world, but it is increasing in use. Unfortunately for the environment (oil spills, CO2 emissions), oil will be with us for a long time. So you might as well capitalize on it with Exxon.

Natural Gas is fast making the United States the number one energy exporter in the world. There are boom towns popping up throughout the country giving many people jobs and some even getting wealthy. Chesapeake is a way to get your piece of boom we’ll be having for the foreseeable future.  General Electric is making the long term investments that will pay off big time at some point. No matter what the media says- Solar Power and Wind Power is actually making great progress in the past few years. I’m not saying when you wake up tomorrow you’ll turn on the solar panel on your car, but in the next 50 years, solar and wind will without a doubt will be an integral part of  our economy.

In summary, buy Exxon for the short term. Buy Chesapeake for the medium term. Buy GE for the long term.