There is a great contradiction playing out on share markets at the moment.
While much of the world accelerates its transition to net zero carbon emissions, energy producers using fossil fuels have been booming over the past 16 months.
This is because the build-up of renewable infrastructure will take a significant amount of time and cost before it can take over from dirtier sources.
The team at Market Matters reckons the traditional energy suppliers will rake it in for many years to come.
"Medium to longer term we remain bullish on the traditional energy sector," it said in a recent memo to clients.
"Unfortunately, we remain confident that the move to a greener world will experience a number of cost blowouts which should be supportive of the dirtier traditional fossil fuels over the coming decade."
This stock has just hit the buy zone
However, right at the moment, crude oil and energy prices are at a dip because of anxiety over the global economy.
Whenever the economy slows down, energy demand plunges, causing earnings to tumble for energy suppliers.
The current weakness is a buying opportunity, according to Market Matters.
"A weak oil price… is a trigger Market Matters often uses to enter a stock/sector."
While the oil price could take months to recover, there are a couple of ASX shares that analysts are interested in at the moment.
First is New Hope Corporation Limited (ASX: NHC), which has seen its share price plunge more than 33% since October.
That's left the coal miner paying out a whopping 20% dividend yield.
"Coal has fallen harder than we expected over recent months, illustrating its high beta position with regard to economic strength."
The Market Matters team already holds New Hope shares, but if it didn't it would be buying when the price dips under $5.
The shares closed Tuesday at $4.97 apiece.
"We like New Hope Corporation into current weakness," read the memo.
"Market Matters is long and bullish New Hope Corporation in our Active Income Portfolio."
'Flash crash' nothing to worry about
One energy stock the analysts would buy that's somewhat out of left field is Paladin Energy Ltd (ASX: PDN).
The uranium producer's share price plummeted violently towards the end of last month, to hit 18-month lows.
"The 'flash crash' followed comments from the Namibian energy minister that flagged potential ownership stakes in resources companies. The minister said they may "take the form where the state owns a minimum equity percentage in all mining companies and petroleum production, for which it does not have to pay".
Those nationalisation fears have since abated after Paladin management clarified that any such moves would not impact existing agreements.
In a matter of days, the Paladin share price has recovered the losses from the May crash.
Nuclear power has made a comeback as a viable energy source, ever since Russia's invasion of Ukraine last year forced a rethink for many countries.
"We like uranium as it once again becomes an important part of the energy complex," read the memo.
"There has been significant underinvestment in supply over recent years, and as demand picks up again we expect to see incentive pricing kick in to support new projects, which will likely mean uranium rallies through to long term highs."
