Overview
- The article says attacks on oil tankers near the Strait of Hormuz have caused the biggest energy supply hit in decades by choking a route that once carried about one fifth of global seaborne oil and LNG.
- The writer notes the U.S. is seeking to end the conflict, and says prices could fall if talks succeed.
- The investment case centers on businesses that earn steady income regardless of commodity price swings.
- Brookfield Renewable runs hydro, wind, solar, and battery storage under long power purchase agreements, many tied to inflation, and targets more than 10% yearly growth in funds from operations per share through 2031 with planned dividend growth of 5% to 9% and a yield near 4%.
- Enbridge transports about 30% of North America’s crude oil and 20% of U.S. natural gas, reports roughly 98% regulated or contracted earnings, has met guidance for 20 straight years, and has raised its dividend for 31 years with a yield above 5%.