This Year Is Bad; Next Year Will Be Worse…

This winter will be brutal. There’s no denying that. 

Blackouts are expected for a huge part of Europe and even some areas of the U.S., according to the Federal Energy Regulatory Commission (FERC). 

European leaders are being forced to consider rationing gas just to keep the continent afloat. 

Meanwhile, Russia is enjoying record profits thanks to the energy shortage Putin himself helped create. 

It’s going to be one of the darkest winters on record for a large percentage of the world… 

But it’s nothing compared with what’s coming next winter. 

EU officials report that Europe has managed to build up close to 90% of its maximum gas storage for the year. This fact has been spread incessantly, possibly to keep the general public from panicking and cutting the local forests down for firewood.

It’s enough to keep the citizens warm during a mild winter, but only if the entire continent cuts back its usage by 15% or more. 

Since the people can't be trusted, we’re expecting these cuts to be mandatory. 

German officials simply said the situation will be “complicated” if the winter is colder than average. That certainly doesn't inspire confidence. 

But what’s even more terrifying is that these European leaders seem to lack anything resembling a long-term plan. They're currently more concerned with which furniture to burn first once the gas runs out. 

The entire continent is dangerously unprepared for the future. It’s going to send energy prices through the roof, pumping ludicrous amounts of cash into the LNG industry. 

But that’s far from the end of the story…

It Will Be the Darkest Winter on Record

Europe is praying for a mild winter. It’s going to get the exact opposite. 

While it sucks up its emergency reserves, China will eventually be returning to the market. 

Demand has slumped an astounding 10% globally since the country’s vast factory network went into a never-ending series of lockdowns. 

That won't last forever, though. Once the beast wakes up, it will have a bigger appetite than ever. It will pull another few million barrels per day of oil and thousands of cubic meters of natural gas off the already strained market. 

And don’t think Russia will be making up the difference. 

While Putin is more than happy to charge countries like China and India crisis-level pricing, I don't expect Europe to fall back into his good graces anytime soon. 

While Russia may appear to be spiraling out of control, both economically and politically, Putin is still wielding an enormous amount of power over the planet. 

By disrupting the energy market, he can both hurt consumers all over the world AND make a killing from high prices. It’s a win-win situation, and likely a main reason the war in Ukraine is still dragging on. 

Unfortunately, many of those consumers happen to live in Russia — though I don't think that factors into Putin’s unhinged calculus. 

Well, What Can We Do About It? 

Aside from writing a letter to your congressperson or buying an electric car, your options are limited. 

Many of us are simply doomed to pay higher energy prices until power politics determine our fate, but that doesn't mean we can’t also share in the profits these energy giants are raking in. 

There’s blood in the streets, as analysts commonly say. In fact, there’s more blood in the world’s streets than we’ve seen in years. 

The world’s best solution to the current crisis is American LNG. Producers are scrambling to increase capacity before their eager customers freeze to death around the world. 

But will it be fast enough? Can the U.S. really supply energy to the entire world?

The patriot in me wants to say “Hell yes!” but the realist prevails. There’s no way capacity could scale up enough in such a short time. 

Still, those tankers full of LNG are keeping the market calm. Buyers don’t seem to realize that there’s not enough to go around. 

This winter could see some of the biggest energy price spikes in decades. In the U.S., that means billions of dollars heading straight into the pockets of domestic companies.

Considering the scale of this market upset, it could even redirect trillions into corporations that are worth a fraction of that. 

Continue reading here for more details.

To your wealth,

Luke Sweeney
Contributor, Energy and Capital

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Luke’s technical know-how combined with an insatiable scientific curiosity has helped uncover some of our most promising leads in the tech sector. He has a knack for breaking down complicated scientific concepts into an easy-to-digest format, while still keeping a sharp focus on the core information. His role at Angel is simple: transform piles of obscure data into profitable investment leads. When following our recommendations, rest assured that a truly exhaustive amount of research goes on behind the scenes..