If you’re thinking of investing in fossil fuels, you might want to reconsider. They’re no longer the stable, growing investment that they used to be.
The World Is Moving On To Green Energy
The burning of fossil fuels is bad for the environment, and there are concerns that carbon emissions could cause dangerous changes in the global climate. Solar and wind power are becoming quite common, and heat pumps are likely to take center stage as well. Furthermore, solar and wind power is likely to become more economical than fossil fuels due to technological advancements, and this will make them the primary source of energy for power plants.
Oil Demand Primarily Comes From Automobiles
While automobiles currently demand a significant amount of oil, this isn’t likely to be the case in the future. In fact, electric cars are becoming increasingly common, and this trend will continue into the future.
Natural Gas Heat Will Become Obsolete Too
Currently, natural gas, kerosene, and oil heating is commonplace, but in the future, geothermal energy will become the norm. This will lead to a substantially reduced demand on fossil fuels, and it will have an especially strong impact on the natural gas industry.
Energy Storage Is Likely To Become Commonplace
If batteries make you think of the small batteries in your electronic devices or the battery for your car starter, you aren’t alone. However, that’s going to change. In fact, homeowners are likely to begin generating their own electricity with solar power, wind power, and other forms of green energy, and this electricity will be stored in large batteries for future use.
What Should You Do If You Already Have Invested In Fossil Fuels?
Fossil fuel stocks are likely to gradually drop over the years, and you’re likely to lose much of the money that you invested in them. Currently, economic conditions are good for selling fossil fuel stocks, and you should take advantage of the opportunity during the limited time that it will last. Unfortunately, this time has already passed for coal investments, but more serious losses are yet to come. Not only that, but even utility companies are advised to invest in affordable solar power, wind power, and battery storage as opposed to fossil fuels.
What If You Have A Diversified Portfolio That Includes Fossil Fuels?
If selling your fossil fuel stocks means that you’ll have to get a completely different portfolio, it usually will not be necessary to sell them. However, that depends on the precise percentage of other stocks that you have along with other factors.