Why right now could be the perfect time to get in on the oil and gas boom

While the larger energy indexes are soaring…

Chart refers to U.S. and Canadian markets.

You’ve probably also noticed you’re paying $75 (or even $95) to fill up your gas tank, right?

Or perhaps you or a family member have recently opened a power bill, only to wince. Everyone in North America is having the same experience. We’re all feeling the burn. In fact, just look what happened when I asked a few of my Motley Fool colleagues to share their power bills with you. Maybe $324.99 seems bad… at least, worse than what a childless couple used to see… yet not exactly all-caps AWFUL…

But maybe like another one of my colleagues, you’ve got a bigger family and a bigger property. $871.96? Ouch! That just hurts.

Still, if you ask me, the sheer craziest thing about the oil and gas boom of 2022 is how tens of thousands of investors are just kicking back and watching the sector explode…

While doing absolutely nothing.

Gawking from the sidelines. Sitting on their hands. Complaining about their power bills or the prices they’re paying at the pump… And ignoring the investment opportunity that’s practically waving its arms and shouting “Hey, over here!” Because the oil and gas boom of 2022 is not just the biggest bull market of our time… Arguably, it’s the only one. How many other stocks are surging in 2022? It points to a very tough truth: While at the Fool we always invest with a 5+ year time horizon, I for one am convinced that if you let this bull market pass you by… …and fail to power your portfolio with what I believe are likely to be the best-performing stocks of the next 36 months… You risk setting yourself up for years of underperformance. Consider this:

Over the last year and a half, the TSX/S&P Composite Index is up a piddling 8%.

The U.S. S&P 500 has fared even worse, crawling up a meager 7%…

And the S&P/TSX Capped Energy Index, which tracks Canada’s vast energy sector? It’s more than doubled, rocketing 133%.

You’d better believe the smart money is on the move, too… Take Warren Buffett, the $125 billion man and legendary founder of Berkshire Hathaway…

All the way back in 2019, Buffett started scooping up shares of Occidental Petroleum. And today, he’s still buying—in fact, he’s upped his stake to a whopping 20% of the company.

And Buffett is not just betting on Occidental Petroleum. The man now owns more Chevron than he does Coca-Cola. That should tell you a lot, but then again, you can’t even call his energy investments an open secret. They’re all over the news… With Forbes reporting: And Barron’s putting it like this: And Kiplinger’s saying: So what is Buffett seeing that’s got him piling into energy stocks—and particularly oil and gas stocks—placing no less than US$10.6 billion bets in OXY shares alone? It’s not a mystery… It’s the exact same mega-trend that you and I can see. Because even though energy stocks emerged as the best-performing sector of the last 18 months, outperforming the TSX/S&P Composite Index by a shocking 125 percentage points…

Chart refers to U.S. and Canadian markets.

There’s every reason to think the global energy crisis is only going to get worse—and the payday for investors may only get BIGGER.

Experts are calling it. Let’s start with the renowned author and economic historian Daniel Yergin. Just days ago, in a podcast interview with the International Monetary Fund, he said: To translate, that’s his economist’s way of saying “oil and gas prices are only going to keep rising.” Meanwhile no less than the International Energy Agency has issued an urgent warning: And the New York Times says… And the CBC says…

You rarely see evidence piling up quite this high. But that just shows how drastic and urgent the 2022 energy crisis really is…

In the simplest possible terms, we’ve got a case of rapidly rising demand meeting drastically constrained supply. Fact #1: When the pandemic hit, and the world shuttered, demand for oil and gas plummeted… In fact, many E&Ps (or exploration and production companies) went straight into bankruptcy, reducing the total number of suppliers. To wit:

In 2020, bankruptcy debt in the North American oil and gas industry set a record at over $102 billion, as mountains of debt taken on during the up cycle came due just as the COVID-19 pandemic dealt a massive blow to energy demand. Oil prices famously went negative, signaling the depth of the depression…

And those oil and gas companies that did survive? They reined in their spending. Stopped drilling new wells. Stopped exploring new territories. In short, they stopped investing in bringing on new supply.

As industry authority Evercore ISI has reported, globally, 2021 was the lowest year for new oil discoveries since 1946.

Then we got a Covid-19 vaccine before anyone believed we would. And the worldwide reopening quickly got underway…

Again, you’ve seen it yourself. Your kids or grandkids returning to school, piling into buses again…

Commuters schlepping back to the office… People flying out to hike in Banff or the Alps for their summer vacations… It’s all translated to massive increases in energy demand. You saw this very clearly in the price action of oil and gas stocks over the last 18 months…

Chevron up 70%

Canadian Natural Resources up 106%

ExxonMobil up 110%…

Or take it from Halliburton CEO Jeff Miller. Speaking at the 23rd World Petroleum Congress in late 2021, he said…

Make no mistake: All this would’ve created an energy crisis on its own. And then Russia invaded Ukraine!

Overnight, oil and gas supplies from Europe’s most important energy partner were virtually wiped right out of the market. Overnight, Europe’s supply of energy was cut by as much 50% or more. Unsurprisingly, this horrendous constraint in supply has brought Europe to the very verge of an economic crisis. You have German and French factories simply shutting down—putting padlocks on the doors because there isn’t sufficient energy supply. As the Wall Street Journal reports… Why? Again, it’s very simple. Without energy, the economy shudders to a stop. Unfortunately, if you think green and renewable sources are ready to leap into the breach, consider this…

Despite decades of research and hundreds of billions of dollars invested in R&D…

All aiming to prevent exactly the sort of situation we’re seeing today…

Green and renewable energy supply just a teeny-tiny fraction of the world’s energy.

In fact, fossil fuels remain the globe’s primary source, representing 80% of the total energy supply.

Germany offers an illustrative example. As you may know, for over 20 years, that country has carried out a wide-ranging program of renewable subsidies, known collectively as Energiewende. Yet after decades of investment, and the most aggressive program in the Western world… Renewables have barely made a dent. According to Canadian researcher Vaclav Smil…

“In 2000, [Germany] derived nearly 84 percent of its total primary energy from fossil fuels; this share fell to about 78 percent in 2019. If continued, this rate of decline would leave fossil fuels still providing nearly 70 percent of the country’s primary energy supply in 2050.”

Outside Germany, it’s the same story.

According to data just released by British Petroleum:

Renewables supply just over 10% of energy worldwide.

Does German Chancellor Olaf Scholz want this to be true? Heck no.

Does U.S. President Biden or PM Justin Trudeau? Again, it’s a no.

Does anyone want this to be true? I’m going to say probably not…

Heck, BP and ExxonMobil continue to invest billions into renewable energy R&D—and they’re not doing it out of the goodness of their hearts. (Governments wouldn’t have the will to spend the money if they didn’t also believe green energy is the long-term future, either.) We all know that renewable energy is urgently important. But today, the inconvenient truth is… Green energy remains a very promising opportunity… but nevertheless a very long-term play.

It’s not positive news for governments or climate scientists. But it could be excellent news for investors like you…

Let me illustrate that for you now with just one example from our Motley Fool Canada scorecard. Back in 2021, my colleague Jim Gillies, lead advisor of Hidden Gems Canada, began quietly recommending shares of oil and gas stocks. In fact… Just one a year ago, in June of 2021, he tapped International Petroleum—and the stock is already up 170%!

Then in September he went “back to the well” and re-recommended the stock. Since that time? The stock is up 146%! That’s all within just the last 12 months… And amidst a larger market pullback.

To give Jim full credit for his prediction, let me share exactly what he said to his members in September…

Take it from a guy who recommended a near-triple over the last year, amidst this market turbulence!

So, if you ask me, by now the bottom line should be very clear. Fossil fuels are, for better or for worse, still pretty much the whole show when it comes to global energy supply. Demand for fossil fuels is roaring back now that government lockdowns have lifted, translating directly into the higher energy prices we’re all paying. Meanwhile, Russia’s war in Ukraine is constraining capacity just as demand begins to surge… As a direct result, energy stocks are soaring… The final twist? Even as the smart money cashes in on this opportunity, most individual investors are sitting out the boom. In a way, it’s understandable. I get it. It’s hard not to be spooked by the gloomy headlines about inflation. Or the big dip in shares of Amazon… Google… Facebook… all the Nasdaq darlings… But if I may say so, it’s just more good news. It means the opportunity for you and me is bigger, not smaller. And it’s precisely why I’m going on record now to make the call:

There probably hasn’t been a better time in decades to get into the best-positioned energy stocks!

Potentially positioning investors to cash in at the precise moment that the lever of rising energy prices turns into a virtual tidal wave of profits for certain E&Ps… And for certain pipeline companies and other industry suppliers or what we call “picks and shovels” plays… Potentially turning the best-positioned companies into virtual cash machines. It’s the classic dynamic of the industry, in fact. As oil and gas prices rise, exploration and production company profits tend to surge even faster. Once commodity prices are high enough to cover the business’s fixed costs, everything above that starts to fall to the bottom line as cold, hard cash. Unfortunately, I do have to break it to you: I don’t think it’s as simple as buying an energy ETF and calling it a day. Despite the bull case I’ve just laid out for you… our strong conviction that the oil boom of 2022 is only going to grow… and on which I’m making the biggest call of my career so far… We’re convinced this is NOT the moment to own the broadest possible basket of energy companies. Let’s face it. Speaking of hallmarks of the industry, many E&P management teams have terrible track records, squandering the vast sums of cash they produce when prices are high. Others are sitting on assets that don’t quite meet the market’s needs… or are going to cost way too much to extract and realize…

It’s why my team and I have been so selective in picking out just 8 stocks we think could explode over the next 36 months…

Potentially cashing in on the sweet spot of this energy crisis. And it’s why we’ve just packaged all this up-to-the-minute research into what may be the most urgent report Motley Fool Canada has ever published… At least since the beginning of the pandemic all the way back in March of 2020. It’s called “The Ultimate Energy Play: 8 Stocks to Power Your Portfolio.” And in just a moment, I’ll show you how to get your hands on a copy.

Inside is virtually everything investors need to know… every name, number, and ticker to get invested ahead of what we think will be an exploding demand curve… and a potentially enriching 36 months for investors like you and me. So let me briefly peel back the curtain and share one of the companies with you—showing you exactly why we think this company is positioned to benefit MOST… handsomely rewarding shareholders over the next few years… And proving it to you that you’re NOT going to find just a set of boring ideas you can pick anywhere, from Yahoo Finance to YouTube commenters.

Now, the truth is, Canadian Natural Resources is just one of the stocks in our brand-new report. And frankly, I think it might be the LEAST exciting. That’s why we’re so excited to release this brand-new report to investors right now. We already see our thesis already playing out, and we want give them time to climb aboard… Just like Buffett. Just like the rest of the so-called smart money!

Still, before I show you how to get your hands on The Ultimate Energy Play: 8 Stocks to Power Your Portfolio right now, there’s one more thing you should know…

At this time, we only plan to release 200 copies in Canada. That’s not because we’re wanting to exclude anyone. It’s because of what a unique and timely opportunity we consider this to be. These 8 stocks aren’t “forever” holds. They’re what we think are the likely to be the biggest winners over the next 36 months. (Not the next 36 years.) But from where I’m sitting, it could be an extremely rare opportunity for investors building their 25+ stock portfolio for the long-term to get their share of the profits from what could be a historic energy boom. And if that’s you, I’ve got even more good news. I want to invite you to get the report—accessing every single stock inside… By scooping up a membership in our most dedicated and forward-looking energy stocks service, locking in your access to additional picks… In fact, the Motley Fool’s favourite ultra long-term favorite plays for the FUTURE of energy.

You’ll be among the very first investors to see the 5 brand-new picks, just released inside this service…

And a full portfolio of our energy recommendations for the future—as long as you’re a member — accessed via our members-only website.

All while you scoop up our top 8 oil and gas ideas right now!

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Energy Insider is the first-ever Motley Fool service to exclusively focus on the energy sector, specifically emphasizing the exact kind of alternative energy companies we expect to dominate the market over the years and decades to come.

It’s simple: We’ve never seen an opportunity in the sector anything like this before, encompassing both shorter-term profit opportunities like those we see in the oil and gas sector… AND ultra-long term plays, in fact what we see as some of the innovative “energytech” companies in the world. Between the shorter-term oil and gas boom and the longer term opportunity in renewables, we feel there’s simply no way for us to ignore the opportunity staring us straight in the face any longer. The very first thing you’re going to get the second you join is an email delivering an exclusive copy—one of just 200 released in Canada at this time—of The Ultimate Energy Play: 8 Stocks to Power Your Portfolio. As a reminder, most of these are Canadian stocks. Of course, when you join, you’ll also receive access to initial 20 U.S. stocks in our Energy Insider portfolio, including comprehensive write-ups… PLUS 5 brand-new picks only just released. All the official Energy Insider recommendations are waiting for you on our private, members-only website as we speak. For instance, we have:

The “Tesla of China,” which is China’s leading electric vehicle maker. The company also makes and sells lithium batteries to phone makers, and its CEO is a genius. Charlie Munger — Warren Buffett’s No. 2 at Berkshire Hathaway — called him a combination of Thomas Edison and Jack Welch, saying he’s “something like Edison in solving technical problems, and something like Welch in getting done what he needs to do.”

A second company that really caught my eye is a manufacturer of both electric- and hydrogen-powered trains. Now, I know we don’t necessarily think of the train as a primary source of transportation here in North America anymore, but it’s still widely used in other parts of the world — especially in Europe, where they’re really focusing on decarbonizing all transportation and have actually disallowed short-haul flights where train alternatives are available. So that looks like a massive opportunity.

And then there’s the world leader in “Smart Storage.” This company sells battery storage to commercial and industrial customers, as well as some energy producers. But the neat thing is the company uses artificial intelligence to regulate the flow of electrical use, so customers draw energy from the grid when it’s cheaper and from the batteries when it’s more expensive, allowing customers to save about 30% on their electric energy bills!

Point being, members who join are not going to see any of the stodgy old guard among these official recommendations. Instead, they’re likely to be companies investors have never heard of before. Potential “moonshots” over the next years and decades. And make no mistake about it – we fully expect some of these long-term plays to be volatile. Any particular stock may go down 50% or even 85% along the way. It doesn’t necessarily change our conviction… It’s simply why we always suggest members build a diversified portfolio of at least 25+ stocks and expect to hold them for 5+ years.

Which actually brings me to my next takeaway — I was genuinely surprised by how small a lot of the market caps of these companies were.

While we usually think of some of these oil and gas behemoths when we think of energy, most of these companies are around US$10 billion in market cap or smaller. And many of them are in the US$5 billion or smaller range. I’d be extremely surprised if your average Motley Fool member had heard of a single one of them. Personally, I think that’s a massive benefit of Energy Insider as a service. It’s really “bringing the new” in a way that I believe adds a ton of value on behalf of members who join today. And then my final takeaway after getting to peruse these stocks is pretty simple: I want in too! Now, I’m not technically an advisor on Energy Insider. But as a senior analyst at Motley Fool Canada — not to mention our resident oil and gas expert — I can recognize a great investing opportunity when I see one. As much as I like the opportunity in the best-positioned Canadian oil and gas stocks right NOW, I’m not going to ignore the future. (That’d be like ignoring my family’s long-term financial future, and I don’t mind telling you, as someone’s who just about to become a father, it’s something I think about… A lot.)

Now, here’s just a bit more about what you can expect with your membership…

Because the Energy Insider team will be providing updates every step of the way.

Not only will we be providing quarterly stock rankings of every position in the portfolio, so members always know how we feel about each company at that point in time…

We’ll also be doing a really cool monthly commentary feature just to keep members up to date on the energy sector in general.

Plus, when you join Energy Insider through this special invitation, you’ll receive a complimentary upgrade to Energy Insider VIP status. And, frankly, this is one of the most valuable VIP packages we’ve ever put together. Before I peel back the curtain on the price, I’ll just briefly remind you that the second you join today you’ll get access to:

The 20 U.S. stocks in our Energy Insider portfolio, including comprehensive write-ups on each of the companies, as well as full allocation guidance… plus the 5 brand-new stock picks just released…

In all, a full renewable energy portfolio

You’ll also get quarterly rankings of every stock in the portfolio… and monthly sector commentaries to keep you up to date on the entire energy industry.

All of that in addition to a hot-off-the-presses copy of The Ultimate Energy Play: 8 Stocks to Power Your Portfolio… one of just 200 available in Canada at this time. What’s not to like? You can see why I’m saying this is some of the most unique and potentially profitable research we’ve ever published. I couldn’t be prouder to put it before members like you.

That said, please remember…

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Still, I really think what you’re going to like best is the highly favourable nature of this deal, which lets you keep the brand-new report no matter what…

At Motley Fool Canada, we know it’s true. The market is a painful place right now, and what’s more, we want to reward the intrepid investors willing to follow us now. That’s why you’ll find that this VIP offer is 100% backed by our Satisfaction Guarantee… Which lets you choose another Motley Fool Canada portfolio service membership any time within your first 30 days—if you’re not completely happy. All while you’ll enjoy… Instant access to our members-only website and every longer-term play we’ve picked out so carefully to profit from the FUTURE of energy—the most exciting and high-potential companies solving the biggest problems of our time. AND Exclusive and up-to-the-minute VIP reports (a $200 value!), including:

“3 Top Stealth Energy Stocks” ($200 value)

“3 Rock-Solid Dividend Stocks” report

PLUS the brand-new report I’ve just filled your ear about, “The Ultimate Energy Play: 8 Stocks to Power Your Portfolio.”

Now, when you consider everything I’ve described today that’s waiting for you right now…

Including the timeliest research of all—our brand-new report featuring 8 top stocks to play the oil and gas markets over the next 36 months… And the fact that Energy Insider is really only intended for the select few investors who are prepared to grasp these incredible companies as early in the cycle as possible… You’re probably guessing something like this costs thousands of dollars. Buy-side research like this rarely comes cheap—especially at a moment like this one. In fact, we’ve set the list price to join Energy Insider at just $1,499 for an annual membership. In a word, WOW. It’s a total steal, in my opinion. And one of Motley Fool Canada’s most unique and timely offerings ever… But you do need to know – this offer is available for a short time only… Including your chance to be among those investors who secure a copy of the entire new report with 8 top stock recommendations…

So, the clock is ticking.

Now, I must note that since Energy Insider is a unique solution designed to give members access to some of The Motley Fool’s most timely and actionable research… Much of which will be delivered immediately as soon as you join… We simply cannot offer cash refunds on this offer. You see, we created Energy Insider for investors who are committed to building their portfolios with an aggressive, but still very long-term approach. Just imagine if a group of short-term traders were able to gain access to all this. They could quickly trade on the stock picks within and then cancel without paying their fair share.

Frankly, they could push up prices of the stocks and do a huge disservice to investors who join in good faith.

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Understanding the urgency of the situation here, I’m not going to keep you a moment longer.

You’ve got a decision to make. And I hope you’ve found today’s briefing a valuable investment of your time, whatever you decide. So as a final note, let me assure you that if you’re seeing this message, we still have a spot open for you. And you should know your purchase is 100% protected by our satisfaction guarantee. Just remember. The clock is ticking!

I hope to welcome you as a brand-new member.

Foolishly, Nick Sciple Analyst The Motley Fool   P.S. If I can repeat myself for just a moment—because I genuinely believe the opportunity is that great, and the decision before you is that important…

Fossil fuels aren’t going away. Energy has outperformed every other market sector for the past 18 months.

Energy demand already goes up every year. And right now, with the worldwide reopening amidst the war in Ukraine? We’re steering into a supply chokepoint such as the world has never seen before.

We think there’s no other dependable bull market. There’s no other bull market right now. And we’re convinced this boom is only likely going to get BIGGER.

To get the brand-new report, The Ultimate Energy Play: 8 Stocks to Power Your Portfolio AND secure your Energy Insider invitation before this offer goes off the table, scroll down now!  

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Returns as of 7/20/2022 unless otherwise noted. Fool contributor Andy Cross has positions in Berkshire Hathaway (B shares). Fool contributor Nick Sciple has positions in Berkshire Hathaway (B shares). The Motley Fool recommends Berkshire Hathaway (B shares).

Energy Insider includes U.S. and Canadian stocks. All billing is in CAD. You will be billed according to your choice below and then $1,499 for each year thereafter.

This product is non-refundable.

Having trouble ordering or have any questions for us? Just send them to [email protected], and we’ll get back to you ASAP!

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