3 Bold Oil Market Predictions for 2026
Additionally, I anticipate we'll see more consolidation among smaller oil stocks in 2026. There are dozens of publicly traded independent exploration and production (E&P) companies in the U.S. I expect several of these companies will join forces to increase their scale to better weather lower oil prices.
The gas-powered AI data center boom
While 2026 will likely be a down year for the oil market, it should be a much better year for natural gas stocks. Demand for the cleaner-burning fuel is growing due to the construction of new liquefied natural gas (LNG) export terminals and AI data centers.
Several energy companies are evaluating opportunities to invest directly in gas-fired power plants and data centers. For example, ExxonMobil is developing a 1.2 gigawatt power plant in collaboration with leading power producer NextEra Energy, which would combine gas generation with carbon capture and storage. They're also looking to build a large data center on the site if they can secure a technology company customer for the facility. Meanwhile, Chevron has partnered with gas turbine maker GE Vernova and investment firm Engine No. 1 to build gas-fired power plants for data centers.
I predict that 2026 will be a big year for gas-fired power plant projects (and in some cases, the associated data centers) funded by oil and gas companies. These investments would provide energy companies with another growth driver, which could produce steadier earnings compared to their core upstream oil and gas production operations.
2026 could be a busy year for the oil industry
Oil prices have declined over the past year, a trend I expect will continue in 2026. I predict that the slump will fuel another wave of mergers across the sector. It will also likely lead more oil companies to shift their focus to gas-fueled growth drivers, such as power plants and AI data centers. While lower crude prices will likely weigh on oil stock returns in 2026, the moves energy companies make to capitalize on the situation could set them up to produce high-octane total returns in 2027 and beyond.
Should you buy stock in ExxonMobil right now?
Before you buy stock in ExxonMobil, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and ExxonMobil wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $490,703!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,157,689!*
Now, it’s worth noting Stock Advisor’s total average return is 966% — a market-crushing outperformance compared to 194% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 3, 2026.
Matt DiLallo has positions in Chevron and NextEra Energy. The Motley Fool has positions in and recommends Chevron, Goldman Sachs Group, and NextEra Energy. The Motley Fool recommends Ge Vernova. The Motley Fool has a disclosure policy.
3 Bold Oil Market Predictions for 2026 was originally published by The Motley Fool
Content Original Link:
" target="_blank">
