The Angle from T. Rowe Price Oil and Gas – The Persistent Role for Fossil Fuels
12 snips
Jan 7, 2026 
Priyal Maniar, an equity analyst specializing in North American energy, and Elliot Hsu, a credit analyst in energy and commodities, explore the crucial role of fossil fuels in our energy landscape. They discuss how productivity shapes long-term oil and gas prices while contrasting it with short-term market shocks like geopolitical tensions. Both highlight natural gas as a vital bridge in the energy transition. They also emphasize the importance of midstream infrastructure investments and the risks associated with capital discipline in today's energy market.
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Use Bottom-Up Analysis With Valuation
- Build a bottom-up understanding of companies and use disciplined valuation at sector and company levels.
- Compare company strategy and capital allocation to the cost curve to assess vulnerability to shocks.
Geopolitics Raises Reliability Premiums
- Geopolitics drives volatility and fragmented trade flows that raise the premium on energy security.
- The long-term effect is regionalized supply chains and higher marginal cost for reliable supply.
Position Strategically Not Tactically
- Treat energy exposure as strategic rather than tactical and avoid trading every headline.
- Position for structural realities like short spare capacity and investment shortfalls.