Long Term Energy Cost Outlook 7/23/26
Speakers
Charles Bobrinskoy
— Vice Chair and Head of Investment Group, Ariel Investments
Summary
Ariel Investments Vice Chairman Charlie Bobrinskoy expects higher energy prices. He says US oil consumption exceeds production and the Strategic Petroleum Reserve is at a two-decade low, creating tight supply. He also expects data-center energy demand to spike over three to five years, with natural gas as the principal beneficiary due to insufficient renewables.
- US is consuming more oil than it pumps, with the Strategic Petroleum Reserve at a two-decade low and not being refilled.
- Tight oil supplies are expected to drive oil prices higher.
- Data centers will cause a significant surge in energy demand over the next 3-5 years.
- Solar and wind capacity will not be enough to cover rising demand from data centers.
- Natural gas is expected to be the main source meeting the additional energy demand.
- The outlook implies continued upward pressure on oil and natural gas prices.
Ideas
Tight oil supplies to push prices higher
The US is consuming more oil than it pumps, and the Strategic Petroleum Reserve is at the lowest level in two decades with no refilling underway. This will lead to tight supplies and push oil prices higher.
Data center demand to spike natural gas
Data centers will drive a surge in energy demand over the next three to five years, and solar and wind will be insufficient to meet it. The shortfall will be met principally by natural gas, with petroleum also benefiting.
Up Next
This CNBC video, published July 23, 2026, features Charles Bobrinskoy discussing WTI, UNG. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Charles Bobrinskoy · Tickers: WTI, UNG