Oil and natural gas is the largest part of the US energy consumption mix. In 2021, it accounted for 70% according to EIA data. Though renewal energy is pickup in the past few years oil and gas will continue to play a major role in years to come. EIA projects the share of oil & gas in the energy mix would still be over 60% by 2050 though renewals gain share. Renewables alone are not possible to meet America’s energy needs. The 2021 Texas Energy Crisis is a classic example of this scenario.

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Source: Canada is the solution

From an investment point of view, the US is a long way from abandoning fossil fuels. Unlike some smaller countries the country and the current political system and infrastructure is not made for major adoption of renewable energy sources. Hence investors in oil and gas producers and related companies need not worry about the country becoming a renewable energy leader anytime soon.

Related ETF:

• United States Oil ETF (USO)

Disclosure: No positions