When energy is the big story, the go-to guy is Robert Rapier.

Robert is my colleague at Investing Daily and he’s one of the world’s foremost experts on energy. In addition to possessing several advanced college degrees related to the energy industry, he has decades of experience working for oil and gas companies.

As the energy guru at Personal Finance and the chief investment strategist of Utility Forecaster, Robert keeps his finger on the pulse of energy trends and what they mean for investors.

In addition to guiding readers to timely energy plays in Utility Forecaster, Robert travels the world evaluating startup energy companies for deep-pocketed investors. That’s a picture of Robert, in the field.

With the energy markets currently embroiled in unprecedented turmoil, I decided that now is an opportune time to ask Robert for perspective and guidance.

John Persinos: The coronavirus pandemic, combined with the Saudi-Russo oil price war, has clobbered crude oil prices. Is this the worst crude oil price collapse that you’ve seen in your lifetime?

Robert Rapier: Yes, it is definitely the worst short-term shock. We had some dramatic moves up and down during the first Gulf War, but we have never seen the total collapse in demand that we are currently witnessing as businesses grind to a halt and people are quarantined in their homes.

The oil price war seems self-destructive, for both Saudi Arabia and Russia. What are the respective strategic goals of each oil producer in this fight and who will win? Or will both lose?

I think ultimately both would like to see the elimination of shale oil production in the U.S., which has eroded their market share. Saudi Arabia attempted such a strategy in 2014 that collapsed per-barrel oil prices all the way into the $20s.

However, the shale industry proved to be resilient. Some producers did ultimately go bankrupt, but the gambit likely cost OPEC about a trillion dollars in lost revenue.

Read This Story: The Saudi-Russo Standoff: What it Means for You

Not many people expected Russia to embark upon this strategy given the most recent failed attempt, but once they did Saudi Arabia said “OK, we will flood the market if that’s how you want to play it.”

The coronavirus outbreak has really made matters worse for everyone. There may be no long-term winners as a result. There are certainly going to be casualties among the U.S. shale oil producers. That said, we got word on Thursday that the Saudis and Russia have agreed to significantly cut oil production, so we’ll see how events play out.

Why should all investors be afraid of this oil price war?

Mainly because I don’t see a quick return to normal. That means demand will be depressed for a while. When oil demand dropped during the 2008-2009 financial crisis, it bounced back strongly in 2010. I am not so sure that’s going to happen this time.

This pandemic seems destined to change our world in several ways. Some of those ways involve lower oil demand.

But don’t consumers and some industries benefit from lower oil prices?

In a vacuum, yes. But when oil prices collapse because the broader economy is collapsing, that’s not a good thing. For example, airlines would typically benefit from low oil prices. But nobody is flying. So, airline stocks have collapsed.

Even refiners would typically benefit from lower oil prices, but with so many people stuck at home, demand for gasoline has also plummeted. There are no real winners here, except for perhaps the environment. There have been many stories highlighting the fact that pollution is clearing up in many places in China and in the L.A. area.

How low do you think the per-barrel price of oil will go this year?

Last week in Kansas, a barrel of Wyoming crude was being offered for $1.75 a barrel. Those are prices that haven’t been seen in my lifetime. I think it’s likely now that West Texas Intermediate spends time in the teens, with local prices even possibly going into negative territory at times.

Those are prices that would have seemed insane to predict a year ago. But coronavirus has rapidly changed our reality. And I believe the pandemic will leave a scar.

As volatility in the energy patch continues and oil prices hover in a bear market, which energy sub-sectors nonetheless look appealing right now for investors?

When we say “energy,” we are typically talking about oil and gas. That’s how the S&P categorizes the energy sector. In that space, you must exercise a lot of caution right now because there is so much uncertainty.

Chevron’s (NYSE: CVX) CEO recently went on CNBC to assure investors that the dividend was his highest priority and there were no plans to cut it. CVX’s shares rallied 22.7% on that news.

However, in my opinion if oil prices remain in the $20s for an extended period, Chevron will have no choice but to cut its dividend. It would probably take a year or more to force such a move, so I will be watching the company’s quarterly financials closely for warning signs.

The midstream sector should be more insulated from oil price volatility, but that sector has plunged as well. There are some bargains to be had among the midstreams, but I would again caution that if this bear market is lengthy, even the midstreams will see their financials deteriorate.

If you want to extend “energy” more broadly than the S&P 500 classifications, I like the renewables sector over the long-term. Companies that produce and install products such as solar panels, as well as utilities that are moving in the direction of renewables, should fare well in the years ahead.

Finding the next Apple…

As my colleague Robert Rapier just explained, the energy patch is in crisis right now. But there are other sectors where you can reap profits.

Over the long haul, the biggest stock market winners are companies that defy the status-quo and introduce disruptive new technologies that create entirely new industries and products.

Imagine if you had been able to invest in Apple (NSDQ: AAPL) during its infancy. The emergence of 5G wireless technology represents a similar window of opportunity, especially with tech stocks now trading at deep discounts.

Want details on how to profit from 5G? Click here for our technology report.

John Persinos is the editorial director of Investing Daily. You can reach him at: mailbag@investingdaily.com