Trump’s Biggest Energy Winner in 2025

When you put all your eggs in one basket, sometimes things come back to bite you. 

As we talked about last time, things can go particularly awry when dealing with an aggressive energy transition. In the EU’s case — and particularly Germany — that green transition has been riddled with disaster. 

Unfortunately, the Germans aren’t in the same situation as some of their EU counterparts. France has been able to fall back on nuclear power to meet demand, which still accounts for 62% of its electrical generation (followed by hydro and natural gas accounting for another 20%). 

Germany decided to take a different approach by closing all of its nuclear plants. And after a brief turn back to coal power last year to make it through the winter, the country shut down seven of its lignite-fired power plants at the end of March. 

The thing is, Germany has a bit of a problem… Its manufacturing sector is collapsing lately. 

The good part is that we know where they’ll turn to for help.

Trump’s True Energy Winner in 2025

How bad have things gotten over in Deutschland?

Well, it’s clear the German economy has been struggling since the end of the COVID pandemic. While the country’s GDP grew by 1.8% in 2022, it contracted around 0.7% in 2023, and is expected to contract again this year. 

I guess that’s what happens when you’re importing 55% of your natural gas supply from Russia — that’s not to mention the oil and coal imports, too! — and it suddenly gets cut off. 

There’s certainly no going back to coal or nuclear after shuttering its power plants over the last decade. 

And as we saw a few days ago, one of the consequences of putting all their eggs into renewable energy has been far higher electricity prices compared to the rest of the EU. 

Two years ago, Germany had a decision to make as Putin cut off its gas supply: they started replacing that Russian gas supply with U.S. LNG. In fact, the country is now expanding its natural gas import capabilities to bring in more LNG from abroad. 

However, there was one slight hitch to this plan that surfaced earlier this year. Some of you might remember last January when President Biden announced a pause on pending decisions for exports of LNG… all in the name of climate change. 

Keep in mind that the U.S. is the world’s largest exporter of LNG. 

I’ll let you decide on how that turned out for his administration. 

For all the pros and cons to a four-year Trump administration, there’s absolutely no question that the biggest winners in the energy sector will be the oil and gas industry. 

Specifically, it’s clear that natural gas is going to shine. 

Why wouldn’t it? After all, we’re extracting more than 45 trillion cubic feet of the stuff every single year!

More importantly, we know that the EU is clamoring for it. For members like Germany, where it relies on outside suppliers for 95% of its gas supply, boosting the U.S. LNG export capacity is crucial. 

Still scratching your head on who the winners will be? The veteran members of our investment community here already know where to look, too. 

The moment the election was called for President Trump, our favorite LNG players like Cheniere Energy Partners (NYSE: CQP), which operates the Sabine Pass LNG export facility in Louisiana, and LNG shippers like Flex LNG (NYSE: FLNG), have spiked higher over the last week. 

They’re a good place to start your search.