Energy Powers the Modern World
Energy is the foundation of modern life—driving everything from the lights in our homes to the cars on our roads, and powering industries that sustain the global economy. The essential role of energy extends far beyond electricity; it’s in the plastics that make everyday products, the fuel that powers transportation, and the systems that keep industries and supply chains running smoothly.
Investing in the energy sector means supporting the critical infrastructure that makes modern life possible. It’s an opportunity to participate in a sector that fuels not only economic growth but also the conveniences and necessities we rely on every day.
Evolving Energy Sector: Powering Today, Preparing for Tomorrow
With a focus on traditional energy sources like natural gas, alongside innovative advancements, the sector is evolving to meet growing demand and provide lower-carbon energy solutions. This evolution creates a compelling case for investors to engage with the energy sector now, as it powers our present and builds the foundation for the future.
Key Reasons to Invest in Energy & Energy Infrastructure Now
1. Unprecedented Energy Demand Growth
Resurgence: Global energy demand is rising alongside global GDP—energy remains essential for economic growth.
Expanding Global Markets
Countries like China and India are increasingly using natural gas to replace coal, further driving global demand.
Energy Access Gap
Today, 685 million people lack basic energy access, presenting a significant need for continued investment in traditional energy infrastructure.
(Source: WHO, June 2024)
AI Infrastructure Buildout
As the impact of AI continues to grow at staggering rates, the infrastructure to supply the necessary computing power must race to get ahead of demand.
(Source: WHO, June 2024)
Source: Energy Institute June 2025
The world needs more energy
Global energy demand has increased in 38 of the past 40 years, according to the Energy Institute Statistical Review of World Energy.
Energy Institute Statistical Review of World Energy 73rd Edition, June 2024
2. U.S. Energy Leadership
The United States is now the largest producer of oil and natural gas in the world, thanks to advancements in technology and strategic infrastructure investment.
Shale Technology Innovation
Revolutionary advancements in shale extraction have solidified the U.S. position as an energy superpower, delivering sustained production growth.
Energy Independence
Rising U.S. energy production enhances domestic energy security while enabling robust exports to international markets.
Global Impact
U.S. energy exports offer developing economies access to lower-cost, lower-carbon energy sources, reducing reliance on higher-emission alternatives like coal.
Source: ElA as of January 31, 2025
The U.S. is reducing its dependence on foreign oil
U.S. shale results increased U.S. oil production by over 8 million barrels per day. The drop in oil imports from OPEC companies and rise in U.S. oil exports resulted in almost $2 trillion in total cost savings since 2008.
The Market Evolution of Energy Infrastructure
(2002–2024)
While energy infrastructure has had its share of historical market cycles, recent developments point toward where the industry is headed now. Once dominated by more complex master limited partnerships (MLPs), the movement toward C-corporate structures has streamlined the way to invest in energy with simpler tax reporting and potentially lower tax rates. The industry consolidation (as shown by the green line in the chart) can enhance company economies of scale, asset diversification, market position, technology advancements, and risk mitigation, possibly positioning the remaining companies as stronger firms to invest in.
Source: Bloomberg
3. Irreplaceable Infrastructure
The U .S. energy infrastructure network, including pipelines, storage facilities, and export terminals, provides unmatched competitive advantages.
Barriers to Entry
The scale, complexity, and regulatory challenges associated with building new energy infrastructure create significant hurdles for potential competitors.
Economic Moat
Existing pipelines and infrastructure, much of which has been in place for over a century, cannot be replicated. The replacement cost is both financially unattainable and logistically unfeasible.
Resilience
These assets remain essential, offering reliable cash flow even during periods of economic volatility, rising interest rates, or recessions.
U.S. oil and natural gas production created energy security
Shale turned the U.S. into a global energy leader, making it the #1 producer of many gases.
Source: EIA Annual Energy Review
4. Steady, Reliable Cash Flow
Energy infrastructure companies have historically demonstrated their ability to generate steady income underpinned by the essential nature of their operations:
Stability
Long-term contracts and ongoing demand for energy services provide a framework for reliable revenue generation.
Operational Execution
Long standing companies in the sector have shown historical discipline in their operations and execution.
U.S. energy exports grow
Exports of LNG (liquified natural gas), oil, NGL (natural gas liquids), and refined products experienced significant growth from 2010 through September 2024.
Source: EIA September 2024
The Role of Natural Gas in Powering the Future
Natural gas is critical in meeting growing electricity demands and supporting the evolution of lower-carbon energy solutions.
5. Energy’s Next Chapter: AI, Infrastrucure, and the Electricity Supercycle
The U .S. energy infrastructure network, including pipelines, storage facilities, and export terminals, provides unmatched competitive advantages.
U.S. power markets are simultaneously facing decreasing supply and increasing demand leading to substantial load growth for the first time in a decade.
Source: PJM Interconnection
Source: EIA and DOE as of 12/31/2024
U.S. data center electricity demand tripled from 2014 to 2024, fueled by AI applications, electrification trends, and manufacturing growth.
Hyperscalers are turning away from just renewables to meet the supply deficit needs. Now, they’re pointing to atomic, natural gas solutions to meet their needs.
Source: Energy Information Administration (EIA), Hamilton Lane
Source: Department of Energy (DOE)
Market participants forecasting demand growth at 12%-16% per annum, even when excluding generative AI growth.
Why Now is the Time to Invest
Energy is the backbone of modern life, underpinning virtually every aspect of the global economy and daily living. Whether it’s manufacturing, transportation, or technology, no sector operates without energy. The essential nature of these resources makes the energy sector a cornerstone of economic progress, innovation, and growth.
Investing in traditional energy infrastructure means supporting the systems that make modern life possible, while capitalizing on the sector’s potential for long-term growth and stable income. The energy sector isn’t just about fueling economies—it’s about fueling life itself.
Now is the time to recognize this critical role and take advantage of the opportunities presented by the energy sector’s unique position in powering the future.
Source: TCA
Capitalize on Industry Opportunities with Tortoise Capital
Each of the essential infrastructure sectors has unique growth drivers beyond population and GDP growth, which are expected to boost cash flows and rates of return at varying levels. Tortoise Capital offers a range of solutions to help you leverage these opportunities for your portfolio.
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Questions? Reach out to the industry experts in energy investing.