It’s no secret that we’re focusing on more renewable energy resources globally and at a rapid rate. As countries like China continue to battle their overwhelming pollution issues, and the United States wants to create their own domestic sources of energy, renewable energy will be many countries top priority for years to come.
For investors, this means it’s vital to look ahead for smart stock opportunities in this sector. Although crude oil stock is still a viable option for your portfolio, it doesn’t hurt to being expanding your stock investments within the renewable energy field.
As we’ve said many times before, alternative energy sources are attractive for several reasons. In addition to their environmental advantages, they’re normally very efficient and require little downtime to operate. They’re also being used now more than they ever have before.
So, which renewable energy stocks should you be watching currently? Is oil really still a smart investment coming into 2019? Let’s take a look.
The Rise in Renewable Energy Resources Globally
For investors and environmentalists alike, renewable energy resources are our future. Consider the huge uptick in use over the past ten years in renewable energy such as wind power. Wind energy is predicted to provide close to 7% of all electricity in the United States as of 2019, up from just 1.5% as of 2008.
Additionally, solar energy use grew by almost 50% worldwide between 2016 and 2017. This was mostly thanks to the increased focus on renewable energy resources by China and the United States. In fact, Asia accounted for two-thirds of all solar power installations in 2016.
According to the International Energy Agency (IEA), renewable energy will expand most within the electricity sector. In fact, they predict that renewable energy resources will power roughly 30% by 2023. Currently, hydropower tops the list of being the largest renewable source, meeting 16% of the world’s energy needs.
As countries across the globe continue to focus on more environmentally friendly energy options, investors should take note. Here are three key stock options to consider in the renewable energy sector.
#1. Pattern Energy Group, Inc.
Pattern Energy Group (PEGI) makes its money in the wind power sector. It has been an interesting company to follow as stocks have risen and then fallen throughout the first part of 2018. However, with wind energy on the rise, PEGI may be a smart investment for people looking to sink money into renewable energy resources. The company currently has wind energy projects in the United States, Canada, and Chile with plans to expand globally over the next several years.
#2. NextEra Energy Partners
If you haven’t heard of NextEra Energy, they’re a clean energy company that operates in the wind and solar energy markets. They are focusing on acquiring other smaller energy operations to expand their facilities over the next several years. They’ve gone on record stating that they believe they can increase their annual rate to 15% through 2023, making them a renewable energy company to watch for investors.
#3. Brookfield Renewable Partners L.P
Brookfield Renewable Partners L.P operates in the hydropower sector, specializing in hydroelectric plants. The vast majority of the company’s revenue comes from these plants. In terms of the company’s long-term plans, they are planning to enter the wind and solar power markets over the next several years. As we’ve previously mentioned, renewable energy resources will continue to be a focus globally, making companies like Brookfield vital to watch for smart stock investment potentials.
With renewable energy on the forefront globally, is oil still a viable investment opportunity? The answer is yes.
Don’t Forget About Oil
There is no doubt that renewable energy resources such as solar, wind, and hydropower are all more environmentally friendly than crude oil. They’re also oftentimes a more efficient source of energy, too. However, these points simply don’t change the fact that we rely on oil heavily across the globe, and that isn’t changing anytime soon.
Consider some of these compelling facts about oil consumption:
- Within the United States, 50 percent of our oil consumption is within the transportation industry. We rely on oil for not only our cars, but our planes, trains, buses, and many others.
- The United States is the biggest consumer of oil in the world. So, although renewable energy resources are making great strides, they’re not able to come close to replacing fossil fuels yet.
- Drivers within the United States use more than two thirds more oil than drivers in China and India combined.
If you’re looking for a stock option that isn’t going anywhere, don’t rule out oil. Although renewable energy is expanding faster than it ever has before, it isn’t feasible for oil to be replaced any time soon.
As we predicted in November, crude oil, natural gas, and coal will remain the dominant global energy sources through 2035 and beyond, which means the investment picture will remain broad.
The Renewable Energy Resources You Need to Consider this Year
There is no question that energy companies around the globe are making strides to develop and expand upon cleaner, more efficient sources of power for us to take advantage of. Renewable energy resources have never been more of a focus than in 2018. For investors looking for smart stock options, renewable energy is a great option to consider. For those looking to capitalize on current happenings, don’t rule out oil.
Explore what we have had to say about the energy trading field and what’s to come in the energy sector at Energy Advantage Investor today.