A modern and growing world requires a lot of energy, and according to the Energy Information Administration (EIA), the amount of power we are going to consume will skyrocket over the next few decades. By the time we hit 2040, the world will be consuming around 820 quadrillion British thermal units worth of energy from all sources — oil, natural gas, nuclear and even renewables.
Putting it another way, that’s about 56% more energy than what we consumed as a planet in 2010.
And given that long-term bullish demand picture, it makes perfect sense for investors — even those in retirement — to bet on the energy sector for the long haul. After all, the average retirement can now last more than three decades. That means 30 years of strong energy-related profits.
But how does an investor in retirement go about buying the energy sector? Well, here’s one stock, one exchange-traded fund and one mutual fund to get you started.