Our listed energy stocks are set for some strong gains in 2022. After years of underinvestment in oil, gas and coal the world is now grappling with shortages which have led to eye popping price surges. So those companies with producing assets have basically been given the golden ticket to print money… Natural gas prices have spiked 1000% in Europe, thermal coal has rallied 112% and oil is up 50%.
The severe energy crisis currently taking place in Europe is a glaring example that intermittent renewables cannot replace reliable base load 24 hour power. When the wind doesn’t blow and the sun doesn’t shine – it all fails. Battery storage is frightfully expensive so that is no meaningful solution either.
At the end of the day the world stops without traditional energy sources and trying to replace it will continue to prove futile.
Our key BUY recommendations in the energy sector are:
- Woodside (WPL)
- Santos (STO)
- Beach (BPT)
- Whitehaven (WHC)
Buy before the market realises.