3 New Developments in Energy Trading

energy-trading

As an investor, if you’re tired of the unpredictability of crude oil stock, you’re not alone. Constantly fluctuating gas prices make it tempting to look for something new to invest in, aside from fossil fuels. In terms of energy trading, consider diversifying your stock portfolio and exploring in alternative energy sources.    

Alternative energy sources are attractive for many reasons. First, there are a slew of environmental advantages. Next, they’re generally very efficient and require little downtime to operate successfully. Last, they allow us to invest in an energy source that’s created domestically within the United States.  

Let’s dive deeper into the benefits of alternative energy sources. Then, I’ll shed light on three beneficial opportunities to consider within the energy trading world.  

The Importance of Alternative Energy Sources 

Before we discuss new opportunities in energy trading, let’s explore the case for alternative energy sources. Are they really worth investing in? What advantages do they have over fossil fuels? The answers to those questions are “yes,” and “many.”  Find out exactly why, below.  

A Greater ROI in the Long Term  

To put simply, removing fossil fuels from the earth is incredibly costly. Consider the process of mining for coal, or removing oil from our ocean. I’m sure you can easily envision the extensive, and very costly, operations that both of these fossil fuels require. Obtaining fossil fuels involves huge machinery and a lot of manpower.  

Although certain alternative energy sources require up-front investments, they end up paying for themselves over time. Consider a hydroelectric dam that harnesses the power of water to create electricity on demand. It runs off of water rather than oil, to produce electricity. This is incredibly less expensive in the long run than operating oil removal rigs in the ocean that are fueled by, you guessed it, other fossil fuels.  

Less Pollution  

Alternative energy sources such as solar power, windmills, and hydropower give off significantly less pollution in comparison to fossil fuels. They often don’t produce carbon emissions and rely on things such as water, the sun or wind to produce large amounts of energy. At the end of the day, fossil fuels are simply not as environmentally friendly as alternative energy sources.  

A Domestic Energy Source 

Wouldn’t it be great to rely solely on energy sources that we can create right here within the United States? Alternative energy allows us to do that. Windmills, solar panels, and hydropower systems can all be built right here in the U.S, in a variety of states. This allows our country to become less reliant on other countries for fossil fuels. It also empowers Americans to invest in energy trading, domestically.  

A More Efficient Energy Source  

Alternative energy sources are typically more efficient, too. Aside from occasional maintenance requirements that a windmill or solar panel may require, there is almost zero downtime for these energy producing systems. There simply aren’t fossil fuel producing operations that can say the same.  

energy-trading-solar 

 #1. Solar Energy    

When it comes to energy trading and the type of stocks you should be seriously scouting, solar ranks in the number one spot. The solar energy market is exploding all over the world, from Asia to right here within the USA. And it’s an energy sector that will only continue to rise. In fact, according to the International Energy Agency (IEA), “… solar PV capacity growth will be higher than any other renewable technology (through) 2022.”  

Additionally, the cost per watt has continued to drop throughout the year. As of 2018, the cost per watt of solar energy is just 13 cents. So, consider a renewable energy source whose cost has dropped dramatically year after year, coupled with a growing consumption for that same energy type. In energy trading, solar is the perfect scenario for investors to sink their money into.    

#2. An Innovative New Fuel Type   

If you haven’t heard, there is a new, ground-breaking type of fuel that’s entered the energy world. It’s called Oro Blanco fuel, or OBL. It’s able to power cars, cruise ships, machinery, and even your home. According to experts in Saudi Arabia, OBL will provide up to 10% of the country’s energy within five years from now, and 30% by 2030. 

In terms of energy trading, the price of OBL has doubled twice in the past 14 months, going from $13,000 per metric ton to around $25,000. Yet, having said this, you can currently invest in OBL stock for just $1.50 per share. Simply put, when it comes to energy trading, this is an opportunity that you don’t want to miss out on.   

#3. Wind Energy  

Wind energy is another power source that’s worth investing in. As of 2019, experts believe that wind energy may provide up to 7% of all electricity in the United States. This is up from just 1.5% in 2008.   

There are several specific companies in this field, such as Atlantica Yield PLC (AY) and Pattern Energy Group Inc. (PEGI) that have shown promising growth opportunities.  

As wind energy continues to be one of the largest players in renewable energy, it’s a smart idea to seek out viable stock options sooner than later in terms of energy trading.  

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The Energy Trading Options You Need to Know About 

Although there are pros and cons of every energy source, it’s no secret that renewable energy sources are the direction that the world is headed. Specifically, here within the United States, there is a call for cleaner, more environmentally friendly energy sources, as seen in the huge demand for solar power and wind energy. Investors should plan to explore their energy trading options in solar, OBL and wind energy sooner than later.    

An investment in alternative energy stocks allows you to stay on top of the trends and act on smart predictions. Read what we’ve had to say about the energy trading field, and what’s to come in the energy sector at Energy Advantage Investor today.   

 

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