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NEL ASA, Saturn Oil & Gas, VARTA - which energy share is the best?

Mario Hose Mario Hose, news.financial
0 Comments| February 20, 2020

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Energy sources and storage facilities are topics of the present and future. The more modern a society is, the higher the priority of cleanliness and moral innocuousness. Mobility in rich countries is undergoing change. In conurbations, the aim is increasingly being pursued to electrify motorized transport. Electricity flows into the grid from predominantly nuclear power plants as well as power plants using fossil fuels and can be used to produce hydrogen as an energy storage medium or to charge batteries. The share of electricity from renewable energies has increased worldwide from 18.6% to 25.1% in the years from 2008 to 2018.


Costs are carried by customers

The restructuring of the energy network in Germany has its price. For private households, the cost of a kilowatt hour rose by an average of 6% per year between 2000 and 2019. A price increase for electricity from 13.94 cents to 30.43 cents, i.e. an increase of 118%, had to be borne by citizens on average in Germany.

In the coming years, Germany's nuclear and coal-fired power plants are to be completely shut down and the share of renewable energies further increased. If there should be supply gaps in the grid because renewable energy sources are not sufficient, there will be electricity imports from abroad.


Dependence on OPEC increases

Shifting the generation of nuclear and coal-fired power to neighboring countries does not make life on earth any cleaner or safer. In this context, energy policy must be critically reviewed. The state subsidy for electric cars will further increase the demand for electricity, although it is foreseeable that the national supply will continue to decline.

While Western banks and funds are currently reducing their involvement in oil and gas production for image reasons, dependence on OPEC is increasing. The OPEC countries, such as Iran, Iraq, Syria and Saudi Arabia, have around 80% of the oil reserves. The oil demand of modern society, which strives for security and prosperity, is constantly increasing and now amounts to around 100 million barrels of crude oil per day.


Diversification is necessary

Hydrogen has the potential to become the energy carrier of the future, because it can be stored and refueled similar to petrol and diesel. The refueling process takes a few minutes and the range of the vehicles is comparable to that of vehicles with conventional fuels. NEL ASA (FSE: D7G) manufactures systems that produce hydrogen and can be used to refuel vehicles. However, the energy balance is only truly green if the electricity used to produce hydrogen comes from renewable energy sources. It is similar with the charging of VARTA (FSE: VAR1) batteries.

Saturn Oil & Gas (TSXV: SOIL) is an oil producer from Canada, the country that has the highest standards and environmental requirements in the world for producing the world's most important energy source. The company is growing and profitable, the share is still relatively unknown with corresponding price potential. In the future, the origin of crude oil will become increasingly important, which is why this company in North America is particularly exciting. A well-diversified portfolio consists of an energy mix.


CONFLICT OF INTEREST & RISK NOTE
We would like to point out that Apaton Finance GmbH, the owner of news.financial, as well as partners, authors or employees of Apaton Finance GmbH may hold shares in the aforementioned companies and that there may therefore be a conflict of interest. Further details can be found in our ´Conflict of Interest & Risk Disclosure´.


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