Cale Smith on Energy Investing, How AI runs on Nat Gas, and Why Nat Gas is America’s Moat

The closure of the Strait of Hormuz has triggered the largest energy supply shock in history, removing 13 million barrels of oil and 20% of global LNG capacity from the market. This crisis highlights the strategic importance of U.S. natural gas, which functions as an economic moat due to its scale and low production costs. As AI hyperscalers drive massive electricity demand, natural gas remains the essential, dispatchable power source for data centers, reinforcing its role in global energy security. Cale Smith, CEO of Bastion Fiduciary, argues that energy markets are currently mispricing this structural shift, as many high-quality firms now generate significant free cash flow. Investors should prioritize businesses with strong free cash flow yields and disciplined capital allocation, as the current energy landscape favors companies capable of navigating long-term supply constraints and infrastructure bottlenecks.