Post-Election Energy Clarity

The stars have aligned for one helluva run for oil and gas stocks over the next four years. 

Nothing — and I mean NOTHING, dear reader — plagued the energy sector more this year than uncertainty. We can thank the dreaded U.S. election cycle for that one, folks. 

And unfortunately, there has been a ton of uncertainty over the last few years. No matter which political team you’re on, there’s no question that the U.S. oil and gas industry was villainized; a perfect scapegoat every time there’s a problem with high prices. 

Nevermind that these two energy sources account for nearly 75% of the total energy consumed in the United States. 

This year, there was no shortage of uncertainty. Keep in mind that this was the first time we had a presidential candidate on record saying they would ban fracking, only to campaign on the idea that they wouldn’t ban it. 

But that’s in the past, and I have a feeling that any uncertainty oil and gas companies may have had leading up to the election have dissipated altogether. 

This week we finally got a look at what is in store for the U.S. energy sector, and the future is looking much brighter for investors. 

All you have to do is check out who President Trump is tapping for his Energy Secretary…

Post-Election Energy Clarity

If nothing else, the very least we can say is that we finally — FINALLY — have a little post-election energy clarity.

Let me introduce you to Chris Wright, the man selected to head the Department of Energy under the second Trump administration. 

Quite frankly, things couldn’t get much better for us. 

In case the name doesn’t ring a bell, Chris Wright is the CEO of Liberty Energy, an oil and gas service company based in Colorado. If you’re anti-fracking, you may want to look away now before you feel too disparaged; Liberty Energy specializes in completion services like hydraulic fracturing

Believe me, he’s one of President Trump’s least contentious cabinet members.

Naturally, the entire sector praised the pick; I expect there’ll be a victory lap around the Permian Basin at some point in the near future. 

Buckle up, dear reader, because the next four years are going to be quite profitable for our favorite oil stocks.

But what might surprise you more is that it’s not just the oil and gas sector that is celebrating. 

There’s an even bigger opportunity when the DOE is under the helm of Chris Wright.

Aside from the obvious boon to the oil industry, there’s another part of the energy sector that stands to benefit. 

You see, Chris Wright also happens to sit on the Board of another energy company — one that doesn’t drill a single well, nor does it extract hydrocarbons from underground. 

He serves as a Board member of a company called Oklo, a nuclear startup that is developing small modular reactors here in the U.S. I know the veteran members of our investment community here recognize the powerful role that nuclear energy will play in the decades ahead.

Forget oil and gas profits for a moment, perhaps the biggest energy crisis looming ahead is where we’ll get the power to meet the exorbitant electricity demand for the widespread adoption of AI technology. 

That’s a very real concern for the major tech players building out the United States’ data center infrastructure. 

There’s no one solution to this problem, either. 

Yet, the development of next-gen nuclear technology isn’t the only way to take advantage of this situation. 

For that, you need to find the master key that will unlock the energy needed for AI to flourish. 

And this is where I would start looking.