On Monday, Exxon (NYSE: XOM) announced it was getting into the electric vehicle (EV) game.
According to company reps, Exxon is launching a new lithium mining operation in Arkansas, where it will produce enough lithium to support the manufacturing of one million EVs.
A lot of folks saw this news and used it as a reason to suggest that the internal combustion vehicle was about to become a thing of the past.
If one of the world’s largest oil producers is mining lithium for electric cars, this must be the case.
While it is true that the transition away from internal combustion is happening, don’t think for a second that Exxon’s latest lithium play will distract it from what it does best – produce and sell oil.
Truth is, in terms of any revenue generated from this lithium project, it’ll barely register as an accounting error for the oil giant when you compare it to what it makes from its oil and gas assets.
Don’t get me wrong. Here at Energy & Capital, I’m easily the biggest bull on vehicle electrification.
Hell, I was the one who suggested buying Tesla (NASDAQ: TSLA) right after it went public.
Those who took my advice made a boatload of cash.
And I still maintain that we are at the dawn of the end of internal combustion. Our analysts have traveled the world over, dedicated to finding the best and most profitable investments in the global energy markets. All you have to do to join our Energy and Capital investment community is sign up for the daily newsletter below.
Our analysts have traveled the world over, dedicated to finding the best and most profitable investments in the global energy markets. All you have to do to join our Energy and Capital investment community is sign up for the daily newsletter below.
We already know that by 2030 more than half of all new vehicle sales in the U.S. will be electric, and by 2040, more than 60% of new vehicle sales, globally, will be electric.
Make no mistake: the transition from internal combustion to vehicle electrification is going to make us all insanely wealthy. But that doesn’t mean you should eschew the oil machine altogether.
In fact, we’re actually coming up on a new bull run on oil that, if you play your cards right, will result in some serious life-changing gains.
Certainly, the world’s wealthiest billionaires have been going big on oil over the past few months.
As I noted last week, Warren Buffett, who said just a few years ago that he will not be buying oil and gas stocks, did a complete about-face. Today, oil stocks make up 14% of Berkshire Hathaway’s total portfolio.
Folks, that’s the highest it’s been in 23 years.
You think Uncle Warren knows something the rest of us don’t?
Or what about billionaire hedge fund manager, David Tepper, who recently invested $372 million into oil and gas stocks? Or hedge fund king Steve Cohen. He’s in several oil plays, ponying up more than $1 billion for that action.
Other billionaires loading up on oil right now include…
- Bill Gross — net worth: $2.6 billion
- Paul Tudor Jones — net worth: $8.1 billion
- Ray Dalio — net worth: $15.4 billion
- George Soros — net worth: $6.7 billion
- Carl Icahn — net worth: $6.4 billion
- Jim Simons — net worth: $30.7 billion
- Bruce Berkowitz — net worth: $4.3 billion
They’re all taking massive positions.
And you should be, too.
Yes, the future of personal transportation is electric.
But right now, there’s too much money in oil to ignore because you think Tesla makes cool cars.
It does. But after this next bull run on oil, you could walk away with enough money to buy a whole fleet of Teslas.
And I’m talking about the high-end ones, too.
I’m telling you now, don’t sleep in this next oil bull market. Because it’s going to be a millionaire-maker for those who play it right.
But don’t take my word for it.
Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.