By Editorial Dept - May 29, 2026, 6:30 AM CDT
Energy is usually seen as quite a conservative sector for investors. Constant demand for the product and relatively high dividend payouts create investments that, while not immune from risk, are often seen as a safe play, as somewhere to hide in troubled times. That, though, is an oversimplification. While there will always be a growing demand for energy as long as we continue to automate and electrify our lives, energy demand is still sensitive to economic conditions. In addition, the ways in which we generate power are constantly changing. The challenge of climate change, for example, is already creating a sea change in the energy industry. Demand for “dirty” fuels like coal has dropped off, while relatively “clean” energy sources such as renewables and natural gas have been booming.Those basic facts combine to create a typical energy investor who tolerates risk, but who also does their best to avoid or minimize it whenever possible. However, a strong case can be made that as growing energy demand for AI data centers and other servers meets a political will to change the way we generate electricity, now is the perfect time to incorporate some risk in an otherwise conservative energy portfolio. It is pretty likely that even as soon as ten years from now, the energy market will look very different. As a result, there will be companies that are currently barely, if at all, profitable now, that will have been in the right place at the right time ten years hence, and whose…
