- The energy sector has had a shortage of capital since the shale boom turned to bust in 2014. Capital expenditures are well below what they were in 2014.
- Yet the economy still runs on petroleum products and the inevitable shift to renewable energy is many years in the future, even in the best case scenario.
- A supply/demand imbalance in the energy sector will likely drive oil prices much higher, providing ample returns for major oil companies that survived the downturn.
- BlackRock Energy and Resources Trust provides broad energy sector exposure, along with steady income.
- BGR has performed well during the past few months, but still trades at a discount. It would likely trade at a premium during an oil boom.
For further details see:
BGR: A Forgotten Fund In A Hated Sector