Energy Investments Spark Financial Awakening
Written by Matthew McKean, CEO and co-founder of Frontieras North America (LinkedIn)
My 2023 prediction: Energy-related companies will eclipse the technology sector as the darling of the investment community. The energy sector, competing in what I refer to as the necessity markets, is experiencing a renaissance of renewed interest, great demand and a level of innovation that has been absent for the last two decades.
Technology, and specifically enterprise-focused technology, captured the attention of the investment community during the dot.com era of the mid-1990s. This led to the expansion of the Internet, as well as the introduction of analytic, wireless, and cloud software, IoT and countless other technologies. At a high-level, the growth and acceptance of technology has influenced the way that we complete almost every daily activity and has led to a more connected world. From an investment standpoint, the technology revolution created great wealth, changed how valuations of technology companies were calculated and displaced traditional energy companies from their pedestal at the top of the investment pyramid.
Frontieras North America represents a new breed of energy company. Frontieras is built upon the technological innovation that was started during the dot.com era. The timing allowed Frontieras to develop and refine its patented FASForm process from conceptual through FEL-1 and FEL-2 engineering in record time. The use of advanced engineering software allowed Frontieras to identify gaps, refine the process and extrapolate expected yields long before it breaks ground on its first plant.
We are already seeing traditional energy companies regain their swagger with the investment community. People are realizing that without abundant, affordable, and available energy, the economy stops growing, people are vulnerable and as a society we revert to an era of pre-industrialization. Unlike technology companies, energy companies don’t have to waste money identifying buyers, creating market demand, or figuring out distribution. New energy companies, including Frontieras are going to be actively traded because of the value they provide, the low cost at which they are being brought to market and the high market demand. The demand for energy is growing at a rampant pace across the globe in order to keep up with population growth and support countries that are industrializing.
By December 2022, the energy sector was up roughly 50% for the year -- easily outperforming the broader equities market. What's more, it is the only sector to post a double-digit percentage gain on the year. A quick search of the top energy companies reveals their growth has been expansive in aspects of the energy, including exploration, infrastructure to production in the last year:
Kinder Morgan (KMI) is a large energy infrastructure company in North America. The company owns an interest in or operates around 83,000 miles of pipelines, 141 terminals, and has 700 billion cubic feet of working natural gas storage capacity. KMI posted revenues of $5.2 billion, up 35.4% year-over-year.
Pioneer Natural Resources (PXD) is an oil exploration and production company. Pioneer’s exploration projects include the Permian Basin, Eagle Ford Shale, Rockies and West Panhandle projects. In Q3, PXD reported revenues of $6.09 billion, up 36.5% year-over-year.
Phillips 66 (PSX) is a diversified energy company that processes and markets fuels worldwide. While profits come primarily from petroleum refining, Phillips 66 is also active in the natural gas trade and supplies chemicals and specialty products to global markets. Shares of PSX have shot up by more than 40% in the past year, fueled by higher prices for commodities and strong Q3 results.
By description, Frontieras is a global energy and environmental technology company bringing breakthrough fuel-discovery innovation to solid hydrocarbon materials. Frontieras’ Solid Carbon Fractionation embodies the definition of clean technology as it deploys a waste-free process, utilizing coal as its feedstock to extract high value liquids and gases from solids while producing a purified solid carbon product known as FASCarbon™.
FASCarbon is an efficient environmental product that can be used for industrial uses (steel and cement production) where the carbon is used for heat. Additionally, FASCarbon has 90% less sulfur than Petcoke, lowers the carbon footprint lifecycle and reduces CO2 emissions. Frontieras FASForm produces several other high value gas and liquid fuels, including methane, hydrogen, naphtha, kerosene (jet fuel) and ultra-low sulfur diesel. This represents a future looking solution to prevent shortages in critical energy supply chains.
Frontieras’ FASForm plant deploys a proprietary continuous-feed refining process for coal and other volatile-rich solids that manipulates heat and pressure to reform, refine and liberate the constituent hydrocarbons.
2023 will be a pivotal year for the oil and gas energy markets in the United States and in countries around the world. Frontieras will continue to share our insights on all things energy related and continue to focus on the delivery of abundant, available and affordable energy with the construction of its first FASForm plant.
To learn more about Frontieras North America and its patented energy solution or to invest in the company, please visit www.Frontieras.com.