Monday, October 27, 2025
A recent Wall Street Journal article, “The Frothiest AI Bubble Is in Energy Stocks,” highlighted the fact that investors are looking for any way to invest in the artificial intelligence boom. It is becoming increasingly apparent that AI will need massive data centers that require enormous amounts of electric power. The U.S. power grid is […]
The need for more energy infrastructure has become a hot topic. Investors are realizing that the artificial intelligence and data center buildout will require many gigawatts of electrical power—power that is not currently available. Until small modular nuclear reactors (SMRs) become widely available, likely in the mid-2030s, natural gas will remain the energy source of […]
Last week, the price of WTI crude tumbled from $66.42 to $62.46 (a 6% drop) in just a couple of days. When the price of oil drops sharply, so do the share prices of energy stocks. If you know the types of energy companies to buy, buying the dip will pay off handsomely. The energy […]
While it’s outside my usual investing topics, I am hugely interested in the development of small modular nuclear reactors (SMRs). That we are rapidly moving toward the deployment of SMRs feels like science fiction. These small, 100% reliable and clean power plants have the potential to vastly improve the power grid and the lives of […]
Energy midstream stocks, including master limited partnerships (MLPs), have been an excellent option for investors seeking yield and dividend growth. With the second-quarter earnings season behind us, it’s a good time to see how the sector is doing with dividends. Alerian Energy, now part of VettaFi, publishes indexes that track energy midstream and infrastructure assets. […]
When I learned about the business operations of refining companies a decade ago, I became a fan of the sector and the long-term profit rewards that investors can earn from it. The energy sector is divided into three subsectors. Upstream energy companies drill for oil and gas. These companies receive a lot of attention because […]
There is a widespread belief that renewable energy sources are replacing traditional hydrocarbon energy sources. That is not the case. Here is the global crude oil demand for the last 20 years. Consumption has grown from 83.65 million barrels per day (mbpd) in 2005 to a forecast of 105.5 mbpd for 2025. The use of […]
Known for dividends and attractive yields, energy midstream stocks have been a hot stock sector for the last five years. For example, the Global X MLP & Energy Infrastructure ETF (MLPX) returned 239% over the last five years. The 2025 bear market (mid-February through early April) saw the midstream sector drop by 20%, similar to […]
Editor’s note: This issue was written ahead of the news that the Trump administration tariffs would be paused for 90 days for all countries except China. Crude oil prices have dropped 16% since April 1. Oil at $60 per barrel has significantly different implications compared to oil at $75. The commodity has fallen on the […]
Operations in the energy sector can be divided into three distinct subsectors: upstream, midstream, and downstream. Profits from two of them—upstream and downstream—vary significantly, with price changes for crude oil, natural gas, and refined fuels. The third sector, midstream, has stable revenue streams and makes a good choice for income-focused investors. Major energy companies like […]
