Thinking an ETF like XLE

I keep coming across the talk about how AI is gonna be a big energy drain. Is it really big enough to impact energy as a whole?

I think demand is only going to grow, electric generation will likely be the biggest new call on energy. I think natural gas has a much bigger opportunity to jump than oil over the next year.
Disclosure: I am long gas so talking my own book

Wait for a dip

Microcap Canadian and Permian stonks

jagvocate said:

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Microcap Canadian and Permian stonks

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Please expand on this. I was reading something last week where this one guy was pounding the table on Canadian oil stocks. His argument was the currency had going to weaken so they'd be selling oil for a lot of dollars and paying very low local expenses in the local currency. It caught my eye but I haven't looked into it further.

jamey said:

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Thinking an ETF like XLE

I keep coming across the talk about how AI is gonna be a big energy drain. Is it really big enough to impact energy as a whole?

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Just answering this question. The things I've read are absolutely yes.

For example, recently the WSJ had an article saying data centers will require 100 GW in 10 years. That's 20% of our current grid.

I'm in XLU for this. Utilities will be the ones meeting this demand. I'm also following PJM to track demand response and such

I've done well with VDE.

I'm deeply interested in this topic but also want to expand the OP's question a little.

Between the EV push and the "AI everything!" explosion, electricity consumption forecasts are going vertical. To meet this demand, we're going to need approximately double generative capacity, expand the grid, add all sorts of new grid monitoring equipment, mine tons of minerals, and build tons of equipment. What do you all think are the best ways to invest in this trend? What companies build new plants and transmission infrastructure? Is there an all-in-one ETF for this?

How much are you spending?

With XLE, you're hoping for appreciation. That's the risk.

Why not look at a dividend growing stock, like ET? Or EPD? Both paying better than 7%, & you get paid if the stock doesn't move.

Yes, I have both.

I've bought quite a bit of UNG back when it began to bottom in Feb/March.
No real strategy there, I just saw prices were lower than ever & knew it would come back eventually.
I'm up almost 20% in the past 3 months.... with lots of potential to go way higher based on historical pricing.

Deputy Travis Junior said:

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I'm deeply interested in this topic but also want to expand the OP's question a little.

Between the EV push and the "AI everything!" explosion, electricity consumption forecasts are going vertical. To meet this demand, we're going to need approximately double generative capacity, expand the grid, add all sorts of new grid monitoring equipment, mine tons of minerals, and build tons of equipment. What do you all think are the best ways to invest in this trend? What companies build new plants and transmission infrastructure? Is there an all-in-one ETF for this?

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This is where I'm at, particularly using an ETF to diversify


Seems like this above suggestion may be pretty close at least as far as the final product in the chain

Talon2DSO said:

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I'm in XLU for this. Utilities will be the ones meeting this demand. I'm also following PJM to track demand response and such

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New to this thread but I'm long on copper stocks, the copper market is in need of new copper supplies and that won't happen overnight, it takes time to bring on new supply .. w copper shortages I only see this increasing for quite a while .. just my 2 cents add to this thread .. I see copper going to $6 lb before new growth comes on line ..

Freeport MacMoran is already gone up a lot .. not sure it will keep climbing ? But with copper it it should !

I just opened up the WSJ and noticed multiple articles on this.

The AI Boom Is Powering Gas-Pipeline Stocks
The Unlikely Stocks That Became a Hot Bet on AI The staid utilities industry has become a top-performing sector

fullback44 said:

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New to this thread but I'm long on copper stocks, the copper market is in need of new copper supplies and that won't happen overnight, it takes time to bring on new supply .. w copper shortages I only see this increasing for quite a while .. just my 2 cents add to this thread .. I see copper going to $6 lb before new growth comes on line ..

Freeport MacMoran is already gone up a lot .. not sure it will keep climbing ? But with copper it it should !

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Go on . . . .

Journey Energy in Canada is doing both; developing O&G fields and building electrical generation facilities powered by their gas ... seems like a good model.

MRO Getting bought by ConocoPhillips.

I don't see much chance that natural gas demand doesn't increase significantly in the next few years . If the industry can just show enough discipline to not drill themselves into getting too far ahead of it I like the chances of great returns there. Also, companies that manufacture nat gas fueled power generation components /power plants and electrical infrastructure should do well Over the next decade.

It is absolutely a good time to go long in energy. Natural gas is about to explode if you know which tea leaves to read.

Mmetag10 said:

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It is absolutely a good time to go long in energy. Natural gas is about to explode if you know which tea leaves to read.

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I'm just going XLE. That good enough long term

Mmetag10 said:

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It is absolutely a good time to go long in energy. Natural gas is about to explode if you know which tea leaves to read.

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What's the best way to invest in natural gas?

I would think the war likely winding down in Israel in the next couple months would drop oil/gas prices.

Jabin said:

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Mmetag10 said:

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It is absolutely a good time to go long in energy. Natural gas is about to explode if you know which tea leaves to read.

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What's the best way to invest in natural gas?

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BOIL

Thx!

Jabin said:

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Thx!

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I'm not sure if sarcasm from South Platte. But BOIL is a leveraged ETF that will naturally decay in price over time. It is not an investable asset. You should only trade it in short durations and never ever hold it long term.

Heineken-Ashi said:

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Jabin said:

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Thx!

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I'm not sure if sarcasm from South Platte. But BOIL is a leveraged ETF that will naturally decay in price over time. It is not an investable asset. You should only trade it in short durations and never ever hold it long term.

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Truth!

Ask Brian Earl Spilner about his "learnings" regarding this particular instrument.

Personally, I bought some September XLE $90 calls as a short term trade yesterday morning. Up 16% in a day, so I'm pretty happy so far. I will take some off the table if it rallies again today.

Jabin said:

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Mmetag10 said:

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It is absolutely a good time to go long in energy. Natural gas is about to explode if you know which tea leaves to read.

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What's the best way to invest in natural gas?

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What about one of the natural gas giants? CHK, EQT, CNX, or even CTRA?

Heineken-Ashi said:

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Jabin said:

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Thx!

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I'm not sure if sarcasm from South Platte. But BOIL is a leveraged ETF that will naturally decay in price over time. It is not an investable asset. You should only trade it in short durations and never ever hold it long term.

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Well, if you're wanting to invest in natural gas, BOIL would be a play. Buyer beware FOR SURE, but he's up 8% today.

Jabin - I encourage you to look at the Stock Markets thread that is 6000 pages long. It contains a wealth of great info.

I'm not going to wade through 6000 pages, first of all.

Second, most of that thread is about short-term trading.

Finally, I'm skeptical of anonymous internet stock market geniuses unless they show you audited returns.

FYI. swn and chk will be closing on a merger within the next 6 mos . The new company will be renamed . It will be the largest nat gas company in North America and 3rd largest in the world. Swn does not pay a dividend . Chk does and the merged company will as well. Jmo, the new company is going to be printing money when nat gas prices inevitably recover . The new company will be very well positioned to take advantage of existing and future LNG export facilities . LNG is of course a primary energy source for Europe and the far east and pays a nice premium vs North American gas. I'd encourage ya'll to take a look at this

Jabin said:

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I'm not going to wade through 6000 pages, first of all.

Second, most of that thread is about short-term trading.

Finally, I'm skeptical of anonymous internet stock market geniuses unless they show you audited returns.

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Just read the last few pages and start following today and watch how certain stocks that are recommended play out. I mostly trade shares, some short term, some longer term. I'm up 10% YTD and it would be higher if I hadn't gone rogue on a couple of gamble trades I found on my own.

NM