Even though renewable energy is the future, Kinder Morgan (KMI -0.05%) is still in a prime position over the next few decades to grow. In this clip from "The High Energy Show" on Motley Fool Live, recorded on March 15, Fool.com contributors Travis Hoium and Jason Hall discuss the energy infrastructure company's steady outlook.
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Travis Hoium: Yeah I'm going to stick in the midstream space as well. Kinder Morgan is the stock that I'm going to pick, a big player 6.3% dividend yield. A lot like Matt's pick. You can see here, obviously struggled as demand went down in 2020. But picked right back up. Look I think that long-term, electric vehicles are the future. I think renewable energy is the future. But over the next 10-20 years we're still going to be consuming a lot of oil and natural gas.
The surest way to make money is by buying the companies that are moving that oil and natural gas around. I think E&P companies, exploration, and production companies, are still going to be very risky because they are tied to the price of oil.
Jason Hall: They are leveraged bets on oil prices.
Hoium: They're leveraged bets on oil prices. These are really the steadier plays. We're going to see oil consumption I think increase over the next couple of years simply because people are buying more trucks and SUVs and I think that will be the case.
As wages go up that demand is going to continue for at least a little while. I don't think we're going back to everybody buying Yarises anytime soon from a company that's not making small vehicles anymore. [laughs]
Hall: Not in North America.
Hoium: Maybe that's the reason, but that's why Kinder Morgan is the play that I like right here.
