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Innovation is the Solution to High Oil Prices

Business is going gangbusters at my local Costco gas station.

From sunup to sundown, there’s a perpetual traffic jam as long lines of drivers wait patiently to fill their tanks.

I took this snapshot yesterday. It’s a wait!

Costco gas station line

As of March 9, the national average price for regular gas is at $4.25 — the highest in U.S. history.

Brent crude oil, the global benchmark for oil, hit a high $139.13 per barrel this week.  JPMorgan estimates crude oil prices could end the year by soaring to $185 per barrel.

Brent Crude Oil Stock prices

I don’t have an electric vehicle (EV) yet. So I’m feeling the pain at the pump right there with you.

At the same time, I don’t know that I’ve ever seen a more perfect setup for new energy.

Innovation is the solution to high oil prices.

I’ll show you four ways this boom is being ignited now. And how you can invest for big money over time that will offset your gas tank dollars.

Catalyst for New Energy Stocks Rise

It’s time to prime your portfolio with new energy stocks.

New energy is any power source that comes from renewable resources, which are naturally replenished indefinitely. This includes sun, wind, water and geothermal heat.

By contrast, fossil fuel sources — such as gas, oil, coal and natural gas — and nuclear power are finite and limited in supply.

We believe the current geopolitical crises and run on oil will act as a catalyst for new energy in four ways:

Paul Mampilly Oil price tweet

No. 1: Make electric vehicles an easier financial choice for more people. This is especially true with the help of U.S. government federal direct subsidies that aim to make EVs more affordable:

Direct EV purchase subsidies

No. 2: Increase interest in new energy products like solar and batteries at all levels. 

According to BrandEssence Market Research, the $182 billion global solar panel market size is forecast to reach $902 billion by 2028. A compound annual growth rate of nearly 26%!

Global solar panel market projection

No. 3: Increase long-term investments in renewable energy. 

Allied Market Research forecasts this market will increase 124% by 2030, topping $1.98 billion.

No. 4: Drive more rapid short, medium and long-term demand for energy innovation products.

And it’s these energy innovation products that are the gateway for potential energy stock gains.

Add New or Average Down on New Energy Stocks

It’s no secret — to us or Cathie Wood at ARK Invest — that it’s been a “terrible bear market for innovation.”

But she also confirms what we’ve been telling you. This is temporary.

And we believe if you stay in you’ll see spectacular gains ahead over the next five years.

We recommend new energy across most of our portfolios. Some of our best plays include:

  • A 450% gain in a year and a half.
  • 638% in just over a year.
  • And an open gain of 1,131% since 2018.

Some of our worst open positions are currently down -78%, -69% and -47%…

And the way we see it, these rock-bottom prices for new energy stocks are a fire sale that can’t be passed up.

You have to take emotions out of investing. If you own the down positions, just keep in mind: you’re down, not out.

New energy stocks are the America 2.0 solution for an America 1.0 finite commodity like oil.

Now is the time to take advantage of the low prices and buy. Or if you already own new energy stocks in your equal-weighted portfolio, you can “average down.”

That means you can purchase additional shares at low stock prices to add future value to your portfolio.

If you’re looking to buy new recommendations — like one innovation that could lead to a 12-million-mile battery — click here for the full story from Paul.

Until next time,

Amber Lancaster

Amber Lancaster
Director of Investment Research, Banyan Hill Publishing

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