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Elon Musk is an outspoken promoter of green energy.
Yet Tesla’s (NASDAQ: TSLA) CEO recently surprised investors when he called for increased production of fossil fuels.
Here’s what Musk said at an energy conference in Norway this week:
“I think we actually need more oil and gas, not less, but simultaneously moving as fast as we can to a sustainable energy economy.”
Tesla is the world’s largest EV automaker – producing 931,000 vehicles last year. Elon founded the company due to concerns related to fossil fuels.
That’s why some folks were shocked by his comments.
Elon is on a mission to help the world transition FROM fossil fuels TO clean energy. However, he’s smart enough to realize that this won’t happen overnight.
“Realistically I think we need to use oil and gas in the short term, because otherwise civilization will crumble,” says Musk.
Elon knows that hydro, wind and solar are the future of energy. And new breakthrough battery technologies make it possible for these to replace fossil fuels.
Yet the transition to clean energy won’t happen overnight.
“One of the biggest challenges that civilization has ever faced is the transition to sustainable energy and to a sustainable economy,” Musk explained.
Unfortunately, investors have embraced ESG investing in recent years. And they’ve shunned “dirty energy” companies that are in businesses like oil and gas.
Global investment in oil and gas exploration has dropped 50% in 5 years, according to Rystad Energy.
That decline in spending means there are fewer new oil and gas wells coming online today. The decline in spending created a tight market for oil and gas. And the perfect setup for soaring prices.
Russia’s invasion of Ukraine disrupted 10 million barrels of daily oil production. And that was enough to send the price of crude soaring (see below chart).
Crude Prices Soar After Russia Invades Ukraine
Most folks think you have to choose. Either bullish on EVs and clean energy.
OR
You’re bullish on oil, gas and fossil fuels.
Yet I’d encourage you to consider this…
You can be bullish on BOTH clean energy (EVs, green tech, battery tech) and fossil fuels (oil and natural gas) at the same exact time.
That’s because clean energy is the future of energy production. It will eventually replace fossil fuels as a cleaner, safer, and cheaper source of energy.
However, far too little money has been invested in conventional energy sources like oil and natural gas. And the world is far too pessimistic on proven energy sources including nuclear power.
This creates a perfect setup where you can be LONG ENERGY – including both clean energy and dirty fossil fuels.
Elon Musk is preparing to reveal his Secret Master Plan 3.0.
This CONFIDENENTIAL document will reveal how Tesla plans to build 20 million EVs per year. And it’ll share shocking details on an initiative to boost battery production by over 3,000%.
It’s critical that you watch this NOW – before Musk reveals everything.
Yours in Wealth,
Ian Wyatt