The energy industry has been facing a tumultuous time recently due to various factors such as the trade war initiated by President Trump, the possibility of a global economic slowdown, and the sharp decline in crude oil prices. As a result, the overall energy sector has experienced a 4.64% decrease since the beginning of 2025, compared to the broader market’s decline of almost 3.6%.
The decline in global crude prices has had a significant impact, with no signs of a reversal in sight. The West Texas Intermediate (WTI) oil price dropped to just over $57 a barrel, reaching levels last seen during the peak of the COVID-19 pandemic in 2021. However, it has slightly rebounded to around $61, buoyed by hopes of progress in trade talks between the US and China. Despite this, many American oil producers have had to halt drilling new wells due to low prices and increased costs resulting from tariffs on steel and aluminum.
On a positive note, natural gas and liquefied natural gas (LNG) have fared well, particularly under the Trump administration. The US is now the largest LNG exporter globally, with record outflows in 2024. The country’s LNG exports are expected to rise significantly, with Europe being the top destination for American LNG due to reduced reliance on gas from Russia.
The natural gas industry is also poised for growth due to the ongoing AI boom, as data centers increasingly rely on natural gas for power. This shift is expected to increase US gas demand significantly by 2040.
Hess Corporation (NYSE:HES) is a key player in deepwater development and production, with top performance in offshore drilling. The company recently surpassed profit estimates despite weak oil prices, and it is set to be acquired by Chevron in a $53 billion deal pending resolution of an arbitration challenge.
Hess Corporation ranks 4th on the list of best energy stocks to buy right now. While there is potential in investing in HES, the focus remains on AI stocks for higher returns in a shorter timeframe. An AI stock that has shown promise in 2025 is highlighted as a more lucrative investment option.
In conclusion, the energy sector is facing challenges, but opportunities exist for growth, especially in natural gas and AI stocks. Hess Corporation remains a strong contender in the industry, with potential for further development and success.
