Oil and gas prices might be down, but the energy sector isn't out, not by a long shot. Instead, the industry is just stuck in one of its occasional cyclical ruts, as demand has outpaced supply for the time being. Longer-term demand for energy is expected to grow in the years ahead because of population growth and an expanding middle class.
This overall growth in energy demand is expected to fuel several megatrends over the next few decades. There are five that have caught my eye, as each offers outsized profit potential for investors.
To help investors understand these trends, and the ways to profit from them, I created the slideshow below. It details the demand growth driver fueling new energy demand in each of the five megatrends as well as the companies best positioned to profit from these trends.
Matt DiLallo owns shares of ConocoPhillips and SolarCity and has the following options: short January 2016 $32.5 puts on Kinder Morgan, long January 2016 $32.5 calls on Kinder Morgan, long January 2016 $10 calls on Ford, short May 2015 $15 puts on Ford, and short August 2015 $50 puts on National Oilwell Varco.
The Motley Fool recommends Chevron, Ford, General Motors, Halliburton, Kinder Morgan, National Oilwell Varco, SolarCity, and Tesla Motors. The Motley Fool owns shares of Devon Energy, EOG Resources, ExxonMobil, Ford, Halliburton, Kinder Morgan, National Oilwell Varco, SolarCity, and Tesla Motors.
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