The Reasons to Invest on Energy
There are in fact different reasons as to why investing in energy and its related sectors is best. One of these reasons is the fact that energy is in demand always and the use of it is expected to grow and opens opportunities that helps to shape the future and earn good income. But what are other reasons with why energy is a good investment to make? Below are insights that are available.
Growth for the Future
Based on the study made by the International Energy Agency, the demand on energy worldwide increases more about 30% by 2035. Global oil demands also will increase to about 100 million barrels a day because the number of cars will double in numbers. Also, oil prices will rise and the demand for electricity will grow twice as fast as the total energy consumption, which rises to about 15% by 2035.
To meet the rise on demands, the world will need to place an investment for trillions of dollars for the related production and supply infrastructure on all sectors of the energy industry for over the next two decades. More than half of the overall investment will go to the oil and gas sector for their exploration, production and transportation increase. The remainder then goes to the electricity sector to be invested for upgraded natural gas and renewable generation and for an upgraded transmission and the distribution network which will be able to help in maximizing efficiency.
The energy market is so very big and it also includes diverse market sectors. Nuclear, coal, gas and oil are just the surface of the offerings of the industry.
Biofuels actually needs input crops, which means energy investing is also a form of agriculture investing. Almost all electricity plants actually needs water to be cooled, which also means that energy investing is water investing as well. For solar and other forms of clean technology, investments and revenues also resembles more the semiconductor market, which likewise means that energy investing is also a form of technology investing.
Income and Growth Advantage
Aside from various companies, investing on energy will likewise allow you to pursue various investment goals. You will also get income opportunities, opportunities to hit big with start-up and exploration companies and also with growth companies. You will however need to know the kind of strategy which is appropriate for your economic situation. After knowing what it is, energy investing will be able to help you in accomplishing it.
Most of the things we could do can be done without exerting energy, but this is actually a requirement. Unlike other sectors which usually depends on consumers, energy always have been a constant demand.