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Energy

Oil & Gas

The global natural gas market exceeds $1 trillion and grows at 7.5% CAGR — offering inflation hedges, tax advantages and sector-leading historical returns.

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Natural gas accounted for 32% of U.S. energy consumption in 2021 and is growing globally. The energy sector has delivered exceptional returns — top stocks rising 100%+ even as broader markets declined — making it one of the most compelling investment themes of the decade.

The Oil & Gas Opportunity

EIA data shows natural gas was the second most used fuel in the U.S. in 2021. The global natural gas market was $955 billion in 2022 and is projected to reach $1.3 trillion by 2027 at a 7.5% CAGR.

WTI crude contracts have risen an average of 16.06% in the six months following each Federal Reserve rate-hike cycle over the past six cycles — a powerful signal for timing energy investments around monetary policy events.

Top-performing oil and gas stocks including TORM PLC, Teekay Tankers, and Scorpio Tankers have seen shares rise over 100% in recent years, handily beating the broader market Russell 1000 Index which declined over the same period.

✅ Pros
Inflation hedge — historically correlates with rising oil prices during rate hike cycles
Unique IRS tax advantages — royalties treated as passive income with active-loss offsets
Strong historical returns — top energy stocks rose 100%+ while broader indices fell
Growing $1.3T market with 7.5% annual CAGR projected through 2027
⚠️ Cons
Subject to geopolitical risk — supply disruptions cause sharp price swings
Regulatory and ESG pressure may reduce long-term fossil fuel demand
Overnight and weekend exposure on open energy positions
Declining oil prices in 2022-2023 pressured sector margins and revenues

Top Companies to Watch

Leading natural gas companies include Coterra Energy Inc. (NYSE: CTRA), Tourmaline Oil Corp., and Gazprom. On the tanker side, TORM PLC, Teekay Tankers, and Scorpio Tankers have delivered exceptional investor returns. Diversify across multiple energy sub-sectors — upstream, midstream, downstream and tankers — to manage sector-specific volatility.

At a Glance
Market Size 2022$955 Billion
Projected 2027$1.3 Trillion
CAGR7.5% per year
Post Rate-Hike Avg+16% WTI

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