The year “Big Oil” became “Big Green”

In today’s Exponential Investor…

  • Doesn’t it look so pretty?
  • Five words that struck a chord
  • The Birth of “Big Green”

Every Monday here at Southbank Investment Research we have a team meeting. We use it to discuss what’s going on this week and what we can expect to look forward to in the coming weeks.

It’s a pretty typical meeting you’d expect when an entire business is still all working remotely (on the balance of it) from locations all over the country.

In today’s meeting, Kit Winder, who you regularly hear from on Thursdays and Fridays here at Exponential Investor, spoke to us about what’s coming in the energy sector.

I work closely with Kit, so what he had to say wasn’t new to me. But as he spoke, I started to think that perhaps I’ve not been clear enough with you about what’s really going on in the energy markets right now.

I’ve written to you over the last couple of weeks about the auto industry and how that’s going through some radical change. I’ve done this because when it comes to the global energy transition, cars are something that we can all pretty much relate to.

We all either have a car, or know a family member with one. According to the RAC, at the end of March 2020 there were 38.3 million licensed vehicles in Great Britain. In that sense, more people own a car in the UK than own a home.

Hence it’s something quite relatable. It’s also why I asked whether I should buy the petrol mower or the electric or robotic one the other week. By the way, in case you missed it, here’s what I ended up with, and boy, doesn’t it look so pretty!

A fundamental change to society

Anyway, Kit was talking to the wider company this morning, and there was something he said that I wrote down. Funnily enough it wasn’t specifically about the immense opportunities that the new energy transition is delivering right now, and it wasn’t about the surge in technology advancements that we’re seeing take off in the energy space either.

It was just five simple words.

“The world is different now.”

There was something powerful about Kit’s words. It didn’t have me thinking about whether or not I’d have to wear a mask to the shops. It wasn’t about if I had to order my pints from the table instead of going to the bar at the pub.

It got me thinking about the fundamental fabric of society that exists right now and what that’s going to look like in another 12 months, 2 years… or 20 years from now.

And I agree with him. The world is different now. It’s like this crisis has afforded somewhat of a “strategy reboot” for many sectors and industry around the world. And there’s no sector where that’s more obvious than in the energy markets.

This energy transition was in the works and moving forward before we crept into 2020. And it was presenting an opportunity for investors. But then when coronavirus hit, it all changed.

The economic responses that have followed have amplified the energy transition at a scale that I don’t think anyone was really able to predict, or perhaps be quite ready for.

This amplification of the “green strategy” is sending pockets of “green” stocks on the world’s markets rocketing higher. And dare I say, two people who were prepared for it were James Allen and Kit Winder.

The Birth of Big Green

When I think about what’s going on, you can’t help but get excited about what’s happening in the sector. That’s why when James Allen, editor of Exponential Energy Fortunes, and Kit asked me to be a part of their all-new six day-long special energy summit, Beyond Oil: The Birth of Big Green, I jumped at the chance.

Talking to James, I think he summed it up so clearly when he said,

“… for me, renewable energy and the new technologies driving the energy transition are a one-way bet for investors. If you’re not staking at least a small amount of your capital into this market, you are turning down the single biggest investment opportunity of the last 30 years.”

And what I love most about what James and Kit are doing is the fact they’ve now brought together some of the world’s leading experts in energy markets to explain to investors exactly the kinds of opportunities that are out there and how to get a slice of them.

That’s why the guys have been working feverishly on the Beyond Oil: The Birth of Big Green summit. And it’s why they’ve decided to open up the entire summit to readers of Exponential Investor.

As I say, I’m actually one of their guests for the summit amongst others. If you want to grab your seat at the table (so to speak) and get access to the Beyond Oil: The Birth of Big Green summit which kicks off this Monday 27 July, just click here to claim your free seat.

I think that when you get some of the greatest minds in an industry come together to talk about how fast and how exciting the energy industry is changing, you have to sit up and take notice.

When even those from “Big Oil” come in to say that it’s a whole new world for them, that’s a pretty powerful statement.

As I say, the summit is free to attend for Exponential Investor readers – I can’t see why you wouldn’t want to see what it’s all about.

What a lot of people forget is the reliance on green energy from some of the world’s biggest tech companies. I’ll explore this idea more in tomorrow’s Exponential Investor, but until then consider this…

The biggest buyers of renewable energy in 2019 came from the likes of Google (2,700MW), Facebook (1,100MW), Amazon (900MW) and Microsoft (800MW). You have to wonder, why? But you also have to consider just how big a deal this is for the world’s energy transition which is happening right now, right in front of our eyes.

Until tomorrow,

Sam Volkering
Editor, Exponential Investor

Category: Energy

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