Tuesday, December 31, 2024

3 Bold Predictions Hitting Energy Markets in 2025

3 Bold Predictions Hitting Energy Markets in 2025

Practical Investment Analysis for the New Energy Economy

3 Bold Predictions Hitting Energy Markets in 2025

Keith Kohl | Dec 31, 2024

Right now, we’re only a few hours away from the ball dropping in Times Square.

Although the first New Year’s Eve celebrations in Times square took place 120 years ago, the “time ball” didn’t become a part of the tradition until 1907, when a 700-pound ball made out of wood and iron was added to the spectacle.

In fact, there have actually been four different designs used throughout the years, with the latest iteration of the time ball switching to 32,000 LED lamps and more than double the size of the original. 

It’s a long-standing tradition that has lasted the tests of time, and even those with no interest in watching the ball drop sometimes find themselves tuning in to see it light up the roof of One Times Square each year.

We have a similar tradition here in our investment community. If the Christmas holiday allows us the chance to sit back and reflect back on the past year, New Year’s Eve offers the opportunity to look forward and see just what’s ahead. 

It’s in that spirit that I’d like to give you three market predictions that will occur in 2025. Some may seem bold, a few dull, but you can be sure that all of them will turn out to be profitable. 

So without further adieu, let’s jump right into it…

The AI Stock of the Decade

Could this be the next Nvidia?!?

Find out here…

#3: Cold Winter Nights Will Wake-Up Natural Gas Bulls

Natural gas truly was an underdog investment in 2024. 

Between the mild winters we’ve seen over the last few years and the huge supply glut that has persisted for more than a decade, many natural gas bulls have been hiding their eyes praying for prices to turn around. 

And despite a brief surge in 2022 from the Russian-Ukraine war, prices have been in the basement. 

But things have already started to turn around, with natural gas prices at the Henry Hub having more than doubled since last February. 

That’s going to continue, and here’s why…

You see, natural gas has two big things happening right now. The first one we talked about involved America’s Path to Electrification. 

The United States is having a wake-up moment right now when it comes to its electric power demands. As I mentioned before, Goldman Sachs has projected that data center power demand will climb 160% between now and 2030. 

The largest tech companies on the planet see this exorbitant demand for power, which is why they’re pouring billions of dollars into nuclear investments — hoping for both traditional and next-gen technology will be their knight in shining armor. 

And to an extent, it will be… but adding nuclear capacity and building new plants isn’t something that’ll happen overnight. Constructing a new plant can take up to 8 years on average and cost upwards of $10 billion — and that’s assuming there are no delays or cost overruns! 

In 2025, meeting those growing baseload power needs will be a job for natural gas, which we should also remember currently accounts for over 40% of U.S. electrical generation. 

Of course, this is only half of the bullish story. For the first time in a few years, Europeans are feeling the sting of a colder-than-expected winter. The dreaded Dunkelflaute has reared its ugly head recently, proving that EU countries will have to rely more on natural gas to keep warm.

Yet, European gas storage has been dropping like a rock, which will only get worse over the next few months as the La Niña transition settles in, which will push cold air into the atmosphere and trap cold air from the Arctic. 

As a little side-prediction, I also expect the EU to rethink their aggressive shuttering of nuclear and coal plants. 

Or, they’ll do what they’ve been doing and turn to LNG. We will undoubtedly see countries like Germany push to build up their LNG infrastructure to support more imports. 

Either way, I see it as a win-win scenario for natural gas in 2025. 

Bitcoin Soars Past $100,000 After Trump's Win

Bitcoin has rocketed to an all-time high of $100,000 in the wake of Trump's historic presidential win.

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#2: Oh, The Geopolitical Mess We’ve Made

In 2025, I believe we’re going to finally see an end to the war between Russia and Ukraine — but be careful what you wish for!

There’s a bit of a catch here. Even though I think we’ll see a resolution, nobody knows what it will look like. The incoming Trump administration has made it clear that they want an end to the situation; which means that one side will end up extremely disappointed. 

Will Putin walk away with the piece of the Donbas region that he coveted when the war first broke out? Until we see how talks progress with President Trump in each leaders’ ear, everything is up in the air. 

If resolved, however, there’s going to immediately be an impact on global oil and gas markets. For starters, eliminating the price cap on Russian oil would ultimately lift prices around the world. Countries like China, who are more than happy to buy up all that cheap Urals crude, will have to start paying more for it. 

The real question we must ask ourselves is whether or not the OPEC+ alliance falters once Russia is free to sell its crude on the open market without threat of sanction: That resolve will be tested next year. 

Microsoft Goes Nuclear

Microsoft is building its own nuclear power plants to power its AI ambitions. And for investors, this is a massive opportunity.

Because one little-known company will deliver the nuclear fuel for these reactors.

And it's set to rake in BILLIONS as a result.

Most people have no idea this company even exists. That’s why shares are still cheap.

Get the full story here.

#1: The Best Oil Profits to Find in 2025 Aren’t Where You’re Looking

I don’t think it’ll be very hard to find oil profits in 2025, you just have to know where to look. 

Fifteen years ago, when the tight oil boom was hitting its stride, finding profits in oil stocks was like shooting fish in a barrel. But as you and I know all too well, today it’s a much different landscape in the U.S. oil patch. 

Next year, I think people will finally realize that the “Drill, Baby, Drill” mentality is outdated.  

I know it, you know it, and so does every driller out there. As we’ve said time and again, it’s no longer about how many holes you can drill, it’s about how efficiently you can extract that oil from underground.

Barring some catastrophic event, we’re not going to see oil prices spike back to $100 per barrel anytime soon. Keep in mind that this is in spite of the fact that global oil demand will hit all-time highs in 2025. 

Even with President Trump in office, I don’t believe we’ll see a sudden drilling frenzy. In fact, I don’t think we’ll see much growth during the first half of the year. Any real growth will take place in the third or fourth quarters. 

Again, that doesn’t mean there won’t be money to be made. 

The real winners under a Trump administration will be the infrastructure players that will have a greenlight for new projects. 

We’ll see long-dead projects resurrected and haunt, and red tape slashed as new capacity is added during a second Trump term. 

The thing is, that won’t be President Trump’s biggest impact on the U.S. oil and gas industry… but we’ll look more into that next time.

Until next time,

Keith Kohl Signature

Keith Kohl

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A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing's Energy Investor and Technology and Opportunity.

For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.

Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.

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