AI-Driven Power Demand Fuels a Natural-Gas Forecast

Commentators and columnists have argued that soaring oil prices and the expanding computational needs of artificial intelligence (AI) are reshaping the U.S. energy landscape. He notes that natural gas already supplies over 40 % of U.S. power generation and is poised to absorb additional electricity demand created by an “oil crunch” and AI expansion.

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Smith projects U.S. natural-gas exports to rise from 15 billion cubic feet (Bcf) per day to 35 Bcf per day by the end of 2030. The timeline for this shortfall is outlined as structural shifts occurring in 2027-2028, with meaningful draw-down beginning in the mid-2028 period.

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According to the U.S. Energy Information Administration, Henry Hub spot prices fell from $3.62 per million British thermal units (MMBtu) in February to $3.15 per MMBtu in June, reflecting current oversupply before the projected tightening.

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Smith recommends targeting U.S. producers with rapid ramp-up capability, specifically Expand Energy (NASDAQ: EXE) and Range Resources, which he says have “quick access to natural gas.” He also highlights renewable-energy complements: large-scale nuclear (e.g., Cameco, expected to be operational by 2033-2034) and solar firms XPLR Infrastructure and Clearway Energy.

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The broader thesis suggests that investors could “park some capital” in natural-gas and alternative-energy assets to benefit from higher electricity prices and heightened domestic production emphasis, a trend Smith links to geopolitical pressures such as Iran’s ability to disrupt the Strait of Hormuz.

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• “Natural gas, which [represents] over 40% of U.S. power generation, is imminently going to become the most important fuel in the country,” — Investment Officer Matthew Smith

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