I can’t believe my eyes. The Environmental Protection Agency just announced NEW provisions that would effectively end coal-fired power plants as we know it. The new rules would require extremely lofty investments to eliminate carbon emissions.
Congress should be responsible for these actions, but that’s not how it works anymore. As you can see, they put out a call for public comments. They’ll then ignore all the people explaining how insane they are and then move forward with even greater regulatory scrutiny – that not only kills off coal power in the future… but also targets natural gas.
This is 60% of our energy supply – all wiped away by regulatory fiat.
Now I live in Florida, where we run on nuclear power. Personally, I’ve got enough solar panels to power my farm and home for the next 50 years. But if you live in Kentucky, say, or Illinois? Hope you like higher energy prices.
Here’s the thing: If this is actually their play – and the Supreme Court allows the regulators to do all of this without any Congressional action – then we stand a good chance to make money on all this.
Higher Energy Costs Are Coming… Buy the Dip in Metals
Let’s be clear about the impact of the energy transition in the future. It’s going to require an almost comical amount of metals. As you know, I invested in a Finnish battery company two years ago – and I’m watching in amazement as people in Europe still don’t understand how many batteries alone are required to store energy from wind and solar. If we will replicate their model – and do it within the next 17 years without coal and natural gas…
Take a look at these numbers. First, we need money… we need investment in the alternative energy world. Where are we going to get the money from? We’re probably going to print it. Climate change will be the justification to spend tens of trillions of dollars – and increase our debt to keep this silly system going. So – debt system expands – as does the Fed’s balance sheet – so too will the market move higher.
But it also requires a deeper understanding of the supply side in alternative energy.
In February, I sat in on a presentation by geopolitical analyst Peter Zeihan, who was conducting a talk on globalization. He noted something that should alarm anyone hoping for a green solution…
To achieve the global green initiative, the world will require the following increases in metals by 2030, according to Zeihan:
We’ll need three times the amount of copper we produce today.
- We’ll also need four times the chromium.
- We’ll need ten times the lithium.
- We’ll need ten times the nickel.
- And we’ll need eighteen times the graphite.
And as he noted, we have never doubled the production of a single metal in ten years before. So, we’re talking about incredible (as in scarcely believable and barely comprehensible) demand from this alternative energy sector in a place where supply remains a real challenge.
The buying opportunity is now, though, because metals (particularly copper) are pulling back due to concerns about a recession and the ongoing banking crisis.
But from a long-term perspective, copper is set for a big move higher. There is already a forecasted shortage of copper for the next few years. But if we’re talking about the type of demand required to make this green dream remotely possible, copper has an upside of 150% in the next three to five years.
Over at Flashpoint Trader today, I’m talking to subscribers about the top names in this world for the next few years. I’d love to have you join us, click here for more information.
Today’s Momentum Reading
WORLD’S BIGGEST INDICATORS
Recap: The World’s Biggest Indicator (Momentum) is Red… We had another reversion off the lows of the day, but we’re seeing more weakness in the energy patch, particularly in the upstream drilling names like Haliburton Co. (HAL). Materials stock Albemarle Corp. (ALB) had a nice pop higher thanks to the ongoing Environmental Protection Agency (EPA) news. Lithium prices are moving higher.
Don’t Get Beaten to the Permian
The biggest energy opportunity of the last 17 years is happening before your very eyes.
You can either take my word for it, or read the news headlines for yourself.
Because the mainstream is catching on to what’s happening in the Permian basin fast…
And pretty soon, the buyout boom I’ve been banging on about for the last two weeks will be fair game for anyone on Main Street.
As things stand, you have a major advantage over 99% of regular investors because most folks have no idea that this opportunity is even on the table…
But if you want a shot at maximum upside from the biggest oil buyout boom of the last two decades…You have to be quick.
I know all the movers and shakers in the Permian land rush. I know their prime acreage details… I know their locations and how many wells they’re operating…
I know who their C-Suite executives are. Plus – most importantly – I’ve also taken a deep dive into all their key financials.
And five companies are head and shoulders above the competition in terms of their takeover target potential.
Today, I want to share their names with you.
So don’t wait on this opportunity. Because any single one of these deals could hit at any moment. When the first one does… shareholders will be laughing all the way to the bank.
And I’d hate for you to get beaten to the punch.
May 11 2023