The transformation of global clean energy is a major trend, with the rapid development of renewable energy and electric vehicles being the most typical examples. However, the transition of energy structure from fossil fuels to renewable energy will still take decades, especially for relatively cleaner natural gas.
Therefore, for energy investors, it’s important to have a long-term perspective and not overlook investment opportunities in traditional energy sources such as natural gas and uranium.
Over a period, the ongoing industrialization process in emerging economies will continuously increase the demand for natural gas, reducing reliance on coal and supporting natural gas consumption. Balancing the low-carbon transition with energy security is essential in both developed and developing countries, necessitating the retention of natural gas as the primary fuel for power generation and industrial use.
Among fossil fuels, natural gas is the cleanest energy source and ranks third globally in terms of consumption. Its wide-ranging applications include power generation, heating, and cooking, with low carbon emissions. With these advantages, even if the demand for fossil fuels substantially decreases in the future, natural gas will likely remain relevant.
Tourmaline Oil Corp（TSX:TOU） presents itself as a promising long-term investment target in the Canadian stock market. As Canada’s largest natural gas producer, natural gas accounts for approximately three-quarters of the company’s energy production. Over the past five years, the stock price has surged by nearly 250%, with a peak-trough increase of close to 1000%. Despite the significant rise in stock price, the dividend yield stands at a reasonable 1.8%.
The demand for uranium, another traditional energy source, has experienced a “second spring.”
Between 2021 and 2024, uranium prices have surged by nearly 200%, and the demand is expected to continue to rise in the coming years. The geopolitical risks globally are contributing to the re-establishment of nuclear power plants and reactors, driving the demand for natural uranium.Limited uranium incremental projects and slow global incremental growth are leading to an expanding supply-demand gap, propelling uranium prices into an extended bullish trend.
With the increasing operational nuclear power plants, companies such as Cameco Corp (TSX:CCO) are poised to benefit. As the world’s second-largest uranium producer, surpassed only by Kazakhstan’s Kazatomprom, Cameco is the largest publicly traded uranium company globally. The company owns 1.8 million acres of land in the province of Saskatchewan, Canada, with proven (and probable) uranium reserves of approximately 485 million pounds, ensuring stable growth for years to come. Over the past five years, Cameco’s stock price has surged by over 350%.
In summary, both natural gas and uranium present compelling investment opportunities amidst the global energy transition, with Canadian companies like Tourmaline Oil Corp and Cameco Corp positioned as attractive prospects in the market.
