Name: Goldman Sachs' Neil Mehta on how to play the energy sector
Uploaded: 2026-01-07T20:44:06+00:00
Duration: 254 s

Speakers

Neil Mehta — Managing Director, Goldman Sachs

Summary

CNBC's Brian Sullivan interviews Neil Mehta of Goldman Sachs at the Goldman Energy Clean Tech and Utilities Conference. Mehta explains why Goldman is most constructive on refining, with Valero on its conviction list, and why it views the Suncor selloff on Venezuela headlines as overdone. He also lays out the firm's bullish view on regulated utilities and electrification, its neutral stance on independent power producers, and support for Cameco and nuclear power to meet data-center baseload demand.

Neil Mehta is head of Americas natural resources equity research at Goldman Sachs.
Goldman is constructive on refining due to tightening supply-demand and structurally higher margins.
Valero is a conviction long on low-cost Gulf Coast refining and heavy Venezuelan crude capability.
Suncor's Venezuela-related selloff is viewed as overdone because it is fully integrated.
Goldman favors regulated utilities and electrification exposure over independent power producers.
Cameco and nuclear power are viewed as necessary for data-center baseload demand.
Power demand is expected to grow 2.6% CAGR through the end of the decade.

Ideas

Neil Mehta Managing Director, Goldman Sachs 1:03

Refining margins stay structurally high

Refining is the part of the hydrocarbon complex Goldman is most constructive on: net supply additions are only about 2 million barrels per day over the next five years while demand grows 4-5 million barrels per day, tightening the market and keeping margins structurally higher than history; positioning is also negative.

Neil Mehta Managing Director, Goldman Sachs 1:27

Valero wins from heavier Venezuelan crude

Valero is on Goldman's conviction list because it is the low-cost Gulf Coast refiner, and increased heavy Venezuelan crude flows to the Gulf Coast—if around 500,000 barrels per day—could dislodge local crude and accrete to Valero, especially given assets like Port Arthur that can run heavy Venezuelan crude.

Neil Mehta Managing Director, Goldman Sachs 2:17

Suncor selloff overdone; integrated story strong

The market overreacted by selling Suncor on Venezuela headlines; Western Canadian crude competes with Venezuelan crude on the Gulf Coast, but Suncor has little sensitivity because it is fully integrated with a large refining business. It also posted a strong operational update, beating estimates by 6%, and has momentum under Rich Kruger, so widening WCS differentials are not a major worry.

Neil Mehta Managing Director, Goldman Sachs 3:36

Bullish regulated utilities on electrification demand

Goldman has a bullish view on regulated utilities, while it is only neutral on independent power producers at this moment; Mehta prefers the broader electrification theme and stocks exposed to it.

Neil Mehta Managing Director, Goldman Sachs 3:42

Love electrification theme, own exposed stocks

Goldman loves the electrification theme and remains a supporter of stocks with exposure to it, even though it is neutral on independent power producers at this moment.

Neil Mehta Managing Director, Goldman Sachs 3:51

Cameco benefits as nuclear powers data centers

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.

Neil Mehta Managing Director, Goldman Sachs 3:59

Nuclear needed for data-center baseload power

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.

Goldman Sachs' Neil Mehta on how to play the energy sector

Summary

Ideas

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