Earlier this week, my colleague, self-described “tree-hugging hippy” and renewable economy expert investor Jeff Siegel, penned a very interesting article for our sister site, Energy and Capital.
I’ll share a link to it because I think everyone should read it. But I’ll also summarize it here (albeit extremely briefly), so you don’t have to go read it right now…
In the article, Jeff was talking about a MASSIVE investment one of the world’s biggest oil companies just made in the electric vehicle sector.
And it drives home a point I’ve been trying to make for over a decade at this point. Oil companies like Chevron, Exxon, Shell, and this week’s focus, BP, aren’t just going to fade silently into the night.
If and when we stop using fossil fuels for good, the companies that have cumulatively amassed thousands of trillions of dollars’ worth of profits over their lifetimes are not just going to die off.
They’re going to do the same thing they’ve always done: control the global energy market.
They’ll just be controlling energy that comes from a different source. Join Wealth Daily today for FREE. We’ll keep you on top of all the hottest investment ideas before they hit Wall Street. Become a member today, and get our latest free report: “Dividend Royals: The 7 Best Dividend Aristocrats to Hold Forever”
It contains full details on why dividends are an amazing tool for growing your wealth.
Join Wealth Daily today for FREE. We’ll keep you on top of all the hottest investment ideas before they hit Wall Street. Become a member today, and get our latest free report: “Dividend Royals: The 7 Best Dividend Aristocrats to Hold Forever”
BP Goes EV
And that’s exactly the point that BP just drove home with its recent $100 MILLION order of Tesla’s rapid EV charging stations, or Superchargers.
This is monumental on two fronts. First, it shows that Big Oil isn’t going to lose its grip on the global power market. And second it marks the first time Tesla has ever sold chargers to another company.
These chargers won’t look like other Tesla chargers, though. They will be branded with a “BP Pulse” logo and will be used as part of BP’s own charging network.
And there’s a very good reason BP is so interested in getting its own network of EV chargers as quickly as possible…
Vertical Integration for Market Dominance
You see, in economics, there’s a concept known as vertical integration. It’s simply when a company grows its operations to encompass the entire supply chain of a particular industry.
It’s a way of both ensuring the quality of your product from start to finish and also capturing more of the potential profits the industry has to offer (and cutting down on your own costs at the same time).
In the oil and gas industry, it would be a company that explores, drills, extracts, transports, refines, and sells its own crude oil, natural gas, and end products.
And BP is just such a company. It operates in different segments through different brand names, but they’re all subsidiaries of the larger parent.
So that means, along with its exploration and production business, BP also owns a retail arm as well. It helps the company sell its end products to consumers like you and me.
The BIG Deal
And a few months ago, BP finally closed a deal it had been working on for a while to expand that branch of its business through acquisition.
It was buying a major travel center brand and the business operations that went along with it.
That included 16,000 truck stops across the continental United States with hundreds of thousands of fueling stations offering diesel, unleaded, and even alternative fuels like E-85 and biodiesel.
But one thing it didn’t include was a massive network of EV chargers to service the growing number of electric adopters across the country.
And BP isn’t one to turn away a sale if it can avoid it. So it’s all but guaranteed to be installing that $100 million worth of Superchargers at this network of stations and truck stops across the country.
But there’s a catch…
Big Tenant => Big Rent Checks
You see, what BP bought was the truck stop business. It didn’t buy the truck stops themselves.
The actual real estate — the land, the lots, the buildings, the pumps, everything you can’t pick up and take with you — still belongs to another company.
And if BP wants to keep running the business it just paid billions of dollars to acquire, it’s got to rent the property from the company that owns it.
Or it could choose to close up shop, move to a new location consumers aren’t already familiar with, buy some land, get permits, build a new truck stop, and reopen.
But I’m guessing BP is going to choose to just keep on paying rent as long as people keep on stopping at those service centers along the highway.
And the thing is, with real estate at least, when something gets improved upon, its value goes up. I think we can all agree those EV chargers BP is going to use to draw in more customers will be an “improvement.”
So it should make sense that the real estate (that BP doesn’t own) would become more valuable thanks to BP’s expenditures.
But here’s the deal: Those improvements BP is paying to make are actually going to increase the rent it will have to pay!
And there’s a way regular investors like YOU can get a share of that rent. Not only that, but if you get in now, you can also get a share of the increase those new EV chargers are going to bring.
EV Charging Network Creates Long-Term Income Stream
You see, in my tireless research combing the market for opportunities to capitalize on long-term economic trends AND establish steady income streams to reinvest now and live off of in retirement, I came across something that could put everything else I’ve uncovered to shame.
I’m talking about an income stream that could potentially grow to more than the $3 BILLION per year my investors share from a secret Amazon-related income stream I call “Prime Profits.”
And bigger than the $500 million per year “Internet Royalties” income stream I shared with investors that helped them capitalize on the growth of cloud-based computing.
That’s because this one isn’t tied to any one market or even any one country. It’s international and all applicable.
In short, it’s a way to collect a small amount of money every time an EV driver plugs their car in to charge up at a public charging station like the ones BP just bought from Tesla or the ones you’re starting to get used to seeing at grocery stores and shopping malls around the world.
And it’s already adding up to nearly half a billion dollars a year in shared profits for in-the-know investors.
That’s with just a tiny fraction of the overall car market going electric. If analysts are right and 50% of global car sales are electric in the coming decade, then this income stream is going to do nothing but balloon from here.
It could even get to the point where it’s paying out tens — maybe even hundreds — of billions of dollars every year like clockwork.
But even the few hundred million dollars it’s spinning off right now could certainly help provide a much more comfortable life for any of us.
The near guaranteed future growth and near limitless overall payout is just icing on the cake and a legacy we can leave to future generations.
But with every new headline like the one Jeff shared with his readers earlier this week, more and more people are going to catch onto this incredible income-generating opportunity.
And the more people who get involved, the more people who’ll be sharing in the overall payout. The earlier you get in, the larger your share will be when the rest of the market comes calling.
And their enthusiasm will just make your investment even more valuable by the day, all as it spins out cash to help you build a nest egg you can be proud of and a retirement you can thoroughly enjoy.
So take a few minutes out of your day right now to get all the details and get yourself a piece of the next payout. In fact, it should be here just in time to help out with the Christmas shopping this year.
And keep an eye out for my next article, in which I plan to debunk another of the most common myths about markets and investing.
To your wealth, Jason Williams After graduating Cum Laude in finance
and economics, Jason designed and analyzed complex projects for the U.S. Army. He made the jump to the private
sector as an investment banking analyst at Morgan Stanley, where he eventually led his own team
responsible for billions of dollars in daily trading. Jason left Wall Street to found his own
investment office and now shares the strategies he used and the network he built with you. Jason
is the founder of Main Street
Ventures, a pre-IPO investment newsletter; the founder of
Future Giants, a nano cap investing service; the editor of Alpha Profit Machine, an
algorithmic trading service designed specifically for retail
investors; and authors The Wealth Advisory income stock
newsletter. He is also the managing editor of Wealth
Daily. To learn more about Jason, click here. Want to hear more from Jason? Sign up to receive emails directly from him ranging from market commentaries to opportunities that he has his eye on.
To your wealth,