As I’m writing this, energy industry stalwart Chesapeake Energy is dying. The shale superstar has finally filed for bankruptcy under the weight of a heavy debt load and crashing oil prices – and Chesapeake is not alone. There are plenty of other energy stocks undergoing similar issues.
Thanks to the COVID-19 pandemic, the energy industry is undergoing a somewhat forceful major transition. With work-from-home, stay-in-place orders and general lower economic activity quickly becoming the norm, prices for many traditional fossil fuels have plunged to historic lows. In many cases, supplies continue to outstrip demand by a wide margin. However, there has been a bright spot – and we’re talking about renewable energy sources like solar and wind.
Demand, implementation and prices for renewables have remained steady during the pandemic, which has caused many traditional energy companies to rethink their business models. For investors, it could be a complete shift in the sector and a transition into the industry toward a cleaner future. Possibly one that could be paved with plenty of dividend opportunities.
Find out about more energy stocks here.
