Neil Mehta

The speaker is long-term constructive on oil prices due to "dwindled" spare capacity and inventory, maturing U.S. shale, and growing long-term demand. He specifically mentions ConocoPhillips as favored for its depth of inventory in lower-risk regions like the Permian, Alaska, and Canada. Geopolitical conflict has reduced effective global spare capacity. Structurally, shale growth is slowing, and international project pipelines are limited post-2026. This combination supports higher long-term oil prices, benefiting companies with durable, low-risk resource bases. The current crisis exposes a structural tightness in the oil market. Companies with large, long-life inventories in politically stable regions are best positioned to benefit from both elevated near-term prices and a stronger long-term price floor. A deep, protracted global recession destroys oil demand, or a diplomatic resolution leads to a rapid return of Iranian and other disrupted volumes, creating a sustained glut.

Nuclear is going to be a necessity and must be part of the solution to meet baseload power needs from data centers; Goldman expects 2.6% CAGR in power demand between now and the end of the decade.

Cameco, the largest uranium producer in North America, is an example of a stock Goldman supports for electrification exposure; nuclear is necessary to meet the baseload power needs from data centers, and Goldman expects 2.6% CAGR in power demand through the end of the decade, so nuclear must be part of the solution.