5 Energy Sector Trades to Make Right NOW

Andy Snyder|June 30, 2022

This may be one of the most obvious – yet underplayed – trades on the market right now.

“Absent a global recession or more COVID lockdowns that slow growth, I suspect many parts of the world will face energy shortages.”

Those are the dire and urgent words of an energy expert from the University of Houston.

The idea creates a tremendous opportunity for investors… especially when it comes to natural gas.

That’s the trade. It’s gas… not oil.

You see, it’s not that we don’t have enough supply.

The world has plenty of natural gas. We remember taking the stage back in 2010 to talk about roaring supplies and huge new discoveries.

Back then, the fear in the energy industry was that gas was going to push aside crude as the world’s fuel of choice.

The problem is that since then, we’ve wrongly convinced ourselves that we don’t need it.

Europe brushed aside its potential gas riches.

Now all the energy is in all the wrong places.

Running on Empty

Europe has all but shunned fossil fuels. It’s taken a NIMBY (not in my backyard) approach to energy production over the last two decades. It said it wanted no nukes, no coal and no gas in its backyard.

But now the backyard it pushed all that dirty drilling and processing into isn’t so friendly.

Russia is playing hardball. And because of buffoon-headed political moves made by its enemies, it has all the power.

It’s shutting off supply.

Europe’s dreams of unicorn-powered cities are going up in smoke as it turns back to coal and gas.

That’s why we told our Alpha Money Flow subscribers to buy shares of a relatively small natural gas play last week.

It’s risen every day since. Better yet, it’s moving independent of a very confused market.

It’s no surprise. The world is scrambling to get gas to all the right places.

That’s why this play was unique.

It’s not a driller. The world doesn’t need all that many new wells. It has capped many perfectly good producers as clean-energy waves have swept the planet.

No, what the world needs is a way to get gas from one place to another.

That’s why “midstream” firms – the companies that get gas from the well head to the final processor – are an ideal play right now.

The one I recommended to Alpha Money Flow readers (sorry, that ticker goes to paid subscribers only) works in America’s Permian Basin and is on a bit of an acquisition spree.

There are a bunch of companies like it. Some of the leaders in the space are…

• Oneok (OKE)
• Williams Companies (WMB)
• Kinder Morgan (KMI)
• Energy Transfer (ET)
• Enbridge (ENB).

Like we told our Alpha Money Flow subscribers, these are short-term plays. The sector is likely to pop as the world scrambles to build up gas supplies before winter – a season that’s likely to be quite tough this year.

Get in now, hold for a few weeks and make your money.

That’s what we’ll be doing.

Things are tough out there. There are plenty of reasons (100 senators, 435 representatives and one president) to think they could get worse. But don’t be fooled. There is money to be made.

We’re proving it.

Be well,

Andy

P.S. Attention Alpha Money Flow subscribers: We’re polling readers. With the markets facing some of the fiercest volatility of the last 20 years, do you want more bear market trades like these? How about more trades to take advantage of falling prices, like short trades and puts? If there’s enough support, we’ll add a fresh bear market portfolio to the mix. Email us at mailbag@manwardpress.com.