The most compelling story in energy right now isn’t oil—it’s power.
Electricity demand is accelerating as A.I., cloud computing, and data infrastructure scale at an unprecedented pace. Companies like Microsoft and NVIDIA require massive, continuous power to run data centers and advanced computing platforms—and that demand is only growing.
Ironically, while power-linked assets—utilities, independent power producers, uranium, and nuclear—have significantly outperformed, traditional energy equities have lagged. That divergence won’t last forever.
Why Oil Still Feels Left Behind
Oil markets remain weighed down by excess capacity and resilient supply. Saudi Arabia alone is producing roughly 9 million barrels per day while holding meaningful spare capacity. Add large global projects and the durability of U.S. shale, and investor caution makes sense.
But this is not permanent. Most projections point to a 2027–2029 window where oil supply could slip into deficit as underinvestment collides with demand. The setup is forming—even if timing remains uncertain.
Natural Gas: The Bridge Fuel of Electrification
Natural gas sits at the center of the next phase of the energy transition.
As electrification accelerates and renewables expand, gas provides the reliable, dispatchable power the system needs. With multiple LNG export facilities coming online, U.S. natural gas is positioned as a long-duration opportunity—not a short-term trade.
The Grid Is the Bottleneck—and the Opportunity
U.S. electricity generation totals roughly 4.1 trillion kWh today and is expected to exceed 5 trillion kWh by the early 2030s. The problem? The grid is nearly 50 years old.
It was never designed for:
- A.I. workloads
- Dense data center clusters
- Electrification of transport and industry
As a result, utility capital spending over the next five years is expected to surpass what was invested in the prior five. Grid modernization is quickly becoming one of the most important—and overlooked—energy investment themes.
The Bottom Line
Energy today isn’t just an oil call.
It’s about:
- Power demand
- Natural gas scale
- Grid modernization
- Capital discipline
- Long-cycle infrastructure investment
Oil may have its moment later this decade. But power, gas, and grid investment are already here—and they’re quietly shaping energy’s next chapter.
