There's Opportunity Building in Two Different Energy Trends

The market has been all over the map this week with the ongoing banking crisis.

But that won't stop the big trends changing our future from continuing to work beneath the surface.

One such industry made big, quiet progress in 2022. And that indicates even greater things are to come...

Headline No. 1:

The U.S. installed a record amount of battery storage in 2022.

McCall's Call: Last year, the U.S. installed 4.8 gigawatts ("GW") of battery-storage systems for renewable energy. This amount was almost more than all the installations in 2020 and 2021 combined. That's huge!

As you can see below, the amount of battery storage installed in the U.S. has exploded higher over the past few years.

Since 2017, the total has spiked nearly 18X. The incredible growth rate is thanks to last year's passage of the Inflation Reduction Act – which is funneling billions of dollars into the renewables sector.

Regular readers know that battery storage is critical to the success of other renewable technologies...

Green-energy naysayers often point out that you can't always be generating power from solar or wind installations. But that's exactly why these advanced-storage systems are being built.

They capture and store energy from renewable systems at peak hours and then redistribute it when needed – like at night or when the wind isn't blowing. It's a win-win for all parties involved. Consumers have access to power all day long. And because the power is coming out of storage, it doesn't strain the grid further.

This type of infrastructure is finally starting to make the mainstream headlines. And I can guarantee you'll hear even more about it in the months and years ahead.

According to the U.S. Energy Information Administration, another 9 GW of battery-storage capacity will be installed this year. That's almost double the total from 2022. And it shows just how quickly this industry is growing.

Battery-storage technology will help bridge the gap between current energy sources – including fossil fuels, nuclear, coal, and others – and renewable-energy sources. And that's not even taking into consideration that there will be new innovations in battery technology over the next few years.

As a result, money is flowing into this sector from governments around the world. And we're already starting to see those funds make a meaningful difference in solar, wind, and battery-power system installations.

I've talked before about how to gain exposure to the solar trend. As for batteries, some stocks to add to your watch list include Eos Energy Enterprises (EOSE), Fluence Energy (FLNC), QuantumScape (QS), ESS Tech (GWH), and Solid Power (SLDP).

The incredible battery-storage installation growth we saw in 2022 is just the beginning of what this trend has in store. There remains a long runway ahead, making now the time to start prepping your portfolio for the long term.

Headline No. 2:

Warren Buffett bought 8 million more shares of Occidental Petroleum (OXY).

McCall's Call: Oil prices just hit their lowest level since November 2021. But one of the world's most famous investors views that as an opportunity...

In the third quarter of 2019, Buffett's Berkshire Hathaway (BRK-B) first established a position in U.S. oil producer Occidental Petroleum. Since then, Berkshire has consistently grown its stake.

Including this week's purchase, Berkshire now owns more than 23% of Occidental's outstanding shares. That's a huge bet on oil. And when Buffett makes big bets... investors take note.

I'm in the same bullish camp on oil. And even with prices tumbling in recent months, I believe that oil and gas stocks should have a place in any investment portfolio.

In fact, investors should have exposure to both "clean" and "dirty" energy companies.

Despite the growth we're seeing in solar and wind power, fossil fuels still make up about 81% of power generation in the United States. So it could take years – even decades – before clean energy overtakes traditional-energy sources.

Demand for certain fossil fuels may even increase in the near term...

China's economy is coming back online after years of strict COVID-19 lockdowns. And that should provide a huge boost for oil demand.

Just this week, the International Energy Agency ("IEA") said that a surge in the Chinese economy would help global oil demand "end the year with a bang." It forecast that China's demand increase between the first quarter and the end of year would be the largest since 2010.

Meanwhile, producers aren't eager to increase supply. And that's creating a perfect formula for higher prices in the months ahead.

To capitalize on the continued need for dirty energy around the world, I recently unveiled an investing strategy to my MegaTrend Investor subscribers that details how best to position your portfolio – and it involves investing in both sides of the energy trend.

I call it the Energy Barbell portfolio.

And in the issue just published on Wednesday, I recommended one of my favorite ways to play the ongoing energy crisis in Europe. It's a company that specializes in a more efficient way of shipping a much-needed commodity right now.

If you want to learn more about this strategy – and how to get the name and ticker symbol of the newest addition to our portfolio – I urge you to click here now.

Energy will be a part of our world forever. And we're still a long way away from the full transition to renewable sources of power. That means there's equal opportunity in both clean and dirty energies – and massive upside potential ahead for well-positioned investors.

Here's to the future,

Matt McCall
Editor, Daily Insight
March 17, 2023

Did You Miss My Latest Podcast?

On this new episode of Making Money With Matt McCall, I share one of my favorite investing books by inviting its author on to the show – Nick Maggiulli. His book touches on many crucial investing topics, including how to save money and build wealth over time.

We discuss how those strategies apply to what's happening in today's inflationary environment. Then, we dedicate some time to talk about long-term investing and a buy-and-hold strategy. And of course, investing doesn't come without risk. So Nick and I dive into the importance of understanding your own risk tolerance before jumping into a new stock. This is an educational episode you don't want to miss.