This Energy Tech Could Make Early Investors Millionaires
the core concern is that electricity costs will continue to rise The increased demand for energy has many major players making some huge investments in a long-term solution to the energy crisis The sheer amount of cooperation that is happening in Washington around it Energy economist Garrett Baldwin has uncovered a new area of energy development that's being supported by some of the biggest names in investing Google has been involved with that project and they are signing a deal right now with Shell Energy Bill Gates involved Buffett is an early adopter in this And be sure to watch until the end of the video where he will also share the names of three unique energy plays just for our retail investors I think it's very important right now for investors to start to educate themselves on these types of alternative asset classes and these alternative companies It's a full look at how retail investors can truly take advantage of this boom in new energy development Let's dive in Garrett so great to have you on the show today talking about an important topic that's really been in the headlines since late last year and that's energy and the need for more energy This isn't a new story but what you're going to share with us today is new We'll get to that in just a little bit but I think I'd love to hear your perspective on why energy is such a big investment opportunity right now At the end of the day energy in the United States is the backbone of our entire ecosystem So it's interesting to look in the energy sector right now And if you look upstream particularly in Russell 2000 stocks there are 40 companies in the Russell 2000 and energy right now that are trading for less than their book value which means less than the sum of their parts And meanwhile you have all of these other technology stocks AI digital infrastructure that need energy and yet they're trading at these incredible valuations So as we look at this there's a massive disconnect between the energy that is needed and the AI that needs that support from the energy sector And over time we're going to see not only a rotation but also an increasing focus on new technologies that hopefully bring down the cost of energy in the United States that would actually make our manufacturing sector far more competitive in the global environment Yeah And I think that's exactly why we're seeing such huge investments from these massive tech companies and government leaders too all investing into new energy developments right now I know you are going to share one new area of energy development that a lot of these people are investing in that no one else is really talking about yet I'm excited to share that with our viewers But before we dive into that a little bit more I just want you to talk about some more context into why now Why are we seeing so many headlines about energy right now and so much investment including the potential for a $13 trillion investment into new energy developments At the end of the day electricity is the backbone of America the backbone of civilization And as AI continues to expand and our demographics continue to expand the core concern is that electricity costs will continue to rise Electricity since the 1970s has outpaced in terms of cost the uh the consumer price index Energy is the in major input for virtually everything in manufacturing And every every now and then you know you pay attention you watch the news and you see people griping and complaining about their increasing energy costs It's consumptionbased It's a supply and demand concern here in the United States from an economic perspective But in addition to that there is significant upswings in the demand due to the incredible increase in artificial intelligence robotics automation and the digital training So it's very important that we identify really an all hands-on deck approach to energy And that's why I'm excited to talk about this new form of technology that's going on out in the West right now that really could disrupt and change things and help bring a lot of manufacturing back to the United States over the next decade This new discovery that you have is so interesting I watched your full report and it's fascinating to see the impact that this could have We are going to tell you how you can get a full look at that report too But Garrett why don't you just dive into what exactly you are looking into as this new form of energy that could really be a gamecher Well it's interesting because this technology has been around for 40 years but it hasn't been enhanced in the way that we have witnessed in the last 5 to 10 years So by trade I'm a journalist but I'm also an energy economist having spent uh about 20 years in the commodity space and what's unique about this kind of looking through what's happening in nuclear looking at pipelines in the Peran Basin I've traveled all around the world I I own a B part of a battery company up in Finland I travel to the the Peran Basin on a regular basis to look at different technologies to help support AI And interestingly enough I was watching uh a couple of reports out west in a trade magazine of all places and I saw that there were a lot of land auctions being done by the Bureau of Land Management So that was a little curious What would what would energy have to do with land out in out in the west in Utah and Nevada And I ran a freedom of information report and got some information back And once I saw that I had to take a team out west get go out to Utah flew into Salt Lake City drove three and a half hours south to the middle of the Black Desert in Utah Uh very hot uh very windy But as we drove down this long winding path this dirt road that ultimately leads us to these massive wind farms we get to this little tiny installation in the middle of nowhere And it's fascinating because there's people running all around construction workers and it looks like they're working on some sort of dock or working on some sort of maybe even like a launchpad to try to shoot something up into the stratosphere And the closer and closer you get you think that it's this massive energy project that they're working on when in reality it's this very tiny platform that's maybe the size of a football field and it is drilling 5,000 ft into the earth to harvest a technology that had been effectively discovered and accelerated by different people at Stanford University over the last 20 years The technology is called enhanced geothermal systems And traditionally in geothermal we have looked at places like California or Iceland where you are relying on tectonic plates in order to harvest and and generate electricity The bulk of Iceland's electrical grid operates on geothermal The big problem unfortunately with geothermal is you have to be in these areas Well a while ago scientists said "What if we were able to take existing energy infrastructure or pipelines and push them down into the earth to find superheated rock and then by doing that push water down into the superheated rock and then create steam and then drive that steam back up to the earth and that is a effectively a closedlooped system that produces electricity and it is completely carbon-f free It can generate massive amounts of electricity and if this one little installation that we looked at potentially has the capacity to generate enough electricity just at that location to power all of the homes in a city the size of Los Angeles or Chicago Wow that's an incredible impact But are there more in the works kind of what are some of the plans that we are seeing right now in the US for implementing this new kind of electricity So the leading company in this is a small little company called FVO Energy and a lot of people hadn't heard of it before where it took me some time to really recognize what they were doing but the CEO of the company comes from the drilling space you know looking down in the Peran Basin These guys have gone thousands of miles down into the ground and they started to evaluate this type of technology They built one project that was out in Nevada Uh Google has been involved with that project for about a year and a half I believe and they are signing a deal right now with Shell Energy to provide electricity to the West Coast What's interesting about this is there's very few hot spots around the world that are as dense for heat electricity to to generate electricity from hot rock about 3 to 4,000 uh um feet down What's interesting about this is pretty much the entire western part of uh the United States is optimal for this type of technology So we're seeing this in Utah we're seeing it in Nevada We're starting to see a couple of projects test projects that will come back to the East Coast at some point But what's interesting about this project especially is the sheer amount of cooperation that is happening in Washington around it So we already know that the Trump administration is already pushing away from wind and solar And there's good reason for that Wind and solar is intermittent We don't know when the sun's going to shine and the wind doesn't always blow And one of the other problems with that is you need a massive amount of battery capacity to store that electricity to provide stability to the grid What's interesting about this is that it provides power 24 hours a day seven days a week because it is on that closed loop system And over time the batteries will be built within the installation Once that battery power is installed it can then be effectively outsourced very to a very close uh AI data center or manufacturing hub So you're going to see the increase in this over the coming years But what as I was noting there's a significant amount of collaboration around this Chris Wright who was the current Department of Energy Secretary He was an inh the CEO of a company called Liberty Energy They were a company that was involved with FVO very early In addition to that you have a handful of drilling companies You also have uh individual players like Google and Meta who were involved in this Obviously very environmentally conscious companies And then you have groups like Bill Gates involved Uh Bill G Bill Gates's energy environmental group uh also Tommy Styer a major environmental uh advocate over the last couple of years You're seeing cooperation both on the left and the right On the right it's viewed as a way to produce all American energy You can utilize a lot of the existing drilling uh capacity that has been done in the Perian abandoned wells that can be ultimately turned into geothermal pipelines to ultimately produce power And then because it has absolutely no carbon footprint obviously the individuals on the left and the environmental groups like that type of a technology as well I think what's really interesting about this is all of the big players are talking about this You've got government entities talking about this You've got really large corporations talking about this but it's not something you're seeing in headlines right now It's not something retail investors are buzzing about Why are nobody really talking about this yet Is it just because it's so early It can be because it's early but you have to keep in mind there are companies that have already been in this uh area of technology for years Orat for examples Ormet Technologies Berkshire Hathaway has had a uh has run geothermal plants They own lithium extraction through uh Terithium They have utilities that are connected to this through Pacific Corp And Buffett is an early adopter in this It's a very interesting circle of how Buffett has been involved in the infrastructure investment out west utilizing companies like accidental and with their carbon credits down in in Texas and then a lot of investment in the banks in Japan which ultimately have manufacturing arms that are shipping turbines home So we're seeing early adopters already taking hold on this I think that one of the major reasons has little to do with the fact that it's a technological issue I think it really has more to do with just general noise in the in the existing uh financial markets We have a lot of trade issues going on right now We have a lot of concerns about what's going to be happening in the future with valuations concerns about Japan concerns about the US debt markets So when that happens these types of things can slide under the radar And a very good example of this in 2008 the US shale boom began And it began in the US financial crisis Not a lot of people remember that It took years for people to catch on that all of the early adopters had already made moves and by the time that the US retail investors really got involved in 2013 2014 it was too late then we had that significant draw down in oil capac uh oil production here in the United States and a lot of investors lost money as a result of that so we're in this early adoption phase the expectation is that this will ramp up in the coming two to three years and then that is where this obviously becomes a headline story potential potentially on barren We start to see a lot more speculation integration with oil companies integration with pipeline companies integration with AI data center companies and then by that point the early adopters have made their handsome sum and they look to sell to investors who are just learning about it Uh all of these things happening like you said before the big headlines break on this new technology and that is where investors can make the real money I know you're going to share with our viewers here today three companies that you can invest in right now that are also a part of kind of the early phases of getting this geothermal energy to the US But I also want you to talk about your report where you really have the best opportunities that you share It's just for those people who sign up for this report What investment opportunities could people find by going to visit your report and signing up for the commodity super cycles newsletter Absolutely Well again you want to make sure that you are part of the early adopters So who are the companies right now that are sliding under the radar that people don't know We've dug dug very very deep into this dug into different organizations that have really first mover advantage in this space Secondly we're focusing on the energy companies that were both investors but also would benefit from the technology So remember you have lots of drillers here in the United States The question is which ones are positioned the best to adopt geothermal tomorrow within the energy upstream production area you have a lot of potential infrastructure that has been abandoned That infrastructure can be repurposed for the case of just bringing bringing in this tech these types of technologies refurbishing the existing infrastructure and then getting to work and turning this into clean energy that can be utilized for the US economy quickly So we have focused on the companies that are in the oil and gas services industry and the companies who can adopt this technology right now at the oil production in the upstream In addition to that we look for those diversified players who are kind of the pick and shovel players the ones who are going to help build the infrastructure the ones who are going to benefit from effectively think Nvidia you know selling chips into the massive AI world Think of the players who are going to be helping to build this new geothermal infrastructure across the United States as it takes wind over the next 10 years Garrett so much potential in this sector and I know you have done all of the research If you would like to take a look at the companies that Garrett is talking about you'll have to sign up for Commodity Super Cycles It's his newsletter where he shares the tickers of the three really big potential movers in this new sector You can scan the QR code or click the link in the description of this video to get that report Limitless Energy right now and that's where you can find those really big potential movers that he's talking about I want to leave you with some companies that you can look into today as an investor in the energy space And so Garrett has agreed to share three other names that him and his team at Commodity Supercycles have looked into as really interesting and big plays in the energy field right now So Garrett go ahead and share the name of that first company that you're sharing with just our viewers today Sure I think it's important just to take a little bit of a step back and I want you to think of energy in the United States as a pyramid So we're going to put the more speculative early adoption types of technology at the top Think nuclear all the way at the top It's going to take more than a decade maybe even longer for some of these small nuclear plants to be brought online So we have to think about what can we adopt right now Now FVO and these other organizations they're probably going to be another year year and a half before there is more widespread adoption That's why it's important to get in now But I want to just go back and refocus on what is it that is the true bridge fuel here in the United States over the next decade particularly as we look for ways to balance policy in DC with you know the demands around carbon and carbon uh reducing energy and to meet the needs and at the end of the day it all comes down to natural gas So the first place that I do want to focus is a company called energy transfer Energy Transfer is a MLP It is a pipeline company based down in Houston Texas And what's so important about this organization is that it delivers oil and gas from that upstream middle of the middle of the Peran basin down in Mexico other places to the downstream component of the United States oil and gas uh energy system What's nice about MLPS is that they are tax efficient uh structures and when these organizations generate 90% of their income from that pipeline asset they have very tax efficient ways they can bypass corporate taxes and pay those yields directly to their investors So you end up paying a a lower tax fee and you end up with a higher yield in the process What I like about Energy Transfer the most is that their uh that one of their vice president executive vice president Kelsey Warren has engaged in one of the largest insider buying sprees in the last decade of any company in the S&P 500 He has been buying the stock up because he recognizes that oil and gas will remain the backbone of the US energy sector for at least the next decade and natural gas is going to remain a massive fuel based on the sheer amount of oil and gas demand in Europe through at least the mid2040s based on the contracts we have for LG exports Yeah the insider buying factor is very interesting about this company Thank you for sharing that name I know you and your team at Commodity Super Cycles newsletter really dive into this whole energy field So what is another name that you're looking at as a strong potential for retail investors right now Brookfield Infrastructure Corporation BIPC is the ticker This is a private company It offers investors exposure to diversified energy assets I think this is critical within the infrastructure of what we need to build out over the next two decades politicians they come and go and what we do see on a regular basis is a shift in the the way that the pendulum swings I like Brookfield because they're kind of a best of all class uh player that has done not just you know utilities and transport and midstream and data infrastructure here in the United States but they have broad exposure not only to the US but Asia Pacific and Europe as well Offers about a 4.3% yield And I like the fact that this is a this is a sub subsidiary of Brookfield Asset Management I like the the alternative investment space in this environment Basically what has happened over the last couple of months you've obviously paid a lot of attention to what Donald Trump is doing over in in the Middle East If we pay very close attention to this we have sovereign wealth funds who are going to be bringing money back to the United States and investing in the US But it's the key term investing that I want to focus on they are buying or building assets that are very capital efficient So we're talking about data centers we're talking about energy infrastructure in the LNG space These alternative assets they they create permanent capital They enable uh they allow these organizations to control duration and they take advantage of leverage in the in the markets These are alternative assets compared to the traditional equities that you might know where they offer unique tax structures They have different types of structural payouts They have different types of strategies yet they trade publicly I think it's very important right now for investors to start to educate themselves on these types of alternative asset classes and these alternative companies like Brookfield because over the long term particularly as we see more debasement of the US dollar more concerns around bonds These are things that are tied directly to the underlying economy the infrastructure and the things that we need to get done And what's beautiful about them is that they are cashri cash producing assets that that money is returned back to investors or reallocated into assets that ultimately will produce more cash flow in the future Another really interesting pick for our retail investors to take a look at Now the you have one more name for us and this is a little bit of a different way to invest in this field A lot of people don't focus on closedend funds Uh closed end funds are like a cousin of mutual funds What they do is they create a permanent pool of capital when they are launched They're not the same They don't rebalance to what's known as their net asset value at the end of the day The net asset value is effectively the sum of the parts Instead what happens A fund is created It sells on the open market and because it doesn't connect to its net asset value it can trade at a premium or a discount to its NAV So I always pay attention to a lot of different financial managers who are buying up these types of assets when they are trading at a steep discount to their net asset value and they provide relatively strong yield And one of the things that we have seen is Saba Capital a man by by the name of Boaz Weinstein who is an activist investor he has just been feasting on these midstream uh midstream and solar and other alternative energy closed end funds over the last couple of years particularly as we've seen a steep decline uh in the stock price to their net asset value So the one that we're looking at today is the tortoise sustainable and social impact tea is the ticker and Boaz Weinstein has been buying a lot of this in the last couple of months This is a uh again you're going to recognize a familiar name energy transfer is the top holding in this 9.3% but there's also T uh solar hokco uh holdco the MPLX MLP partnership units one energy western midstream partners hes midstream partners another one of my favorites energy product partners is in there Williams companies and target resources so once again a lot of companies in the midstream space a lot of cap t capital efficiency in that space A lot of ability to turn $1 into many dollars And he is buying this right now The current discount to its net asset value is 14% and the distribution rate is 9.2% You will
pay a little bit of a higher expense ratio But the nice thing about this is if another activist comes in and tries to force the gap between that discount and its net asset value you have 14% upside and you're being paid about 9% in the process of just waiting for those uh for those assets to appreciate in value Garrett you are a wealth of information Thank you so much for diving into these different names and sharing them with our viewers today If you want to get the names of those three other companies that are the early movers in the enhanced geothermal system space make sure to sign up for commodity super cycles and get that report Limitless Energy right now that has the list of those three companies on it Garrett thanks again for your time today Let us know what you think Are you interested in this space Have you heard of it before Or what other areas of energy are you looking at We'd love to hear your thoughts in the comments Thanks again for joining us everyone And as always happy investing
2025-05-23 14:06
