Finding Worthwhile Energy Stocks Amid Rising Risk

Why It Matters

Understanding where value resides in a volatile energy market helps investors protect capital and capture outsized gains as macro risks reshape oil and gas pricing.

Key Takeaways

• Small‑cap oil stocks outperformed despite sector’s 65% decline
• Young avoids technical hype, focusing on intrinsic value over price spikes
• Geopolitical risk centers on Russia, Iran, and uncertain Venezuelan reforms
• Major integrators are overvalued; pipelines and refiners trade at premiums
• Undervalued service firms offer 10x upside when market perception improves

Summary

The Stansbury Investor Hour featured Josh Young of Bison Interests, a small‑cap oil and gas specialist, discussing how to locate attractive energy equities as geopolitical uncertainty rises.

Young highlighted Bison’s near‑400% gain since 2015 despite the sector’s 65% drop, attributing success to a bottom‑up, fundamental approach that shuns technical hype. He warned that large integrated producers and refiners are trading at steep premiums, while the real upside lies in undervalued independents and service firms.

He quipped that his “crystal ball is broken,” then stressed that without secure private‑property rights, even massive capital commitments—such as potential Venezuelan projects—remain speculative. He cited Russia and Iran as the most immediate geopolitical threats to supply stability.

For investors, the takeaway is clear: steer clear of overvalued majors, monitor geopolitical flashpoints, and seek small‑cap producers or oil‑field service companies priced at three‑times earnings or less, where a modest recovery can generate tenfold returns.

Original Description

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In this week's Stansberry Investor Hour, Dan and Corey welcome Josh Young to the show. Josh is the founder of Bison Interests and writer of the Bison Insights newsletter on Substack. Josh specializes in focusing on the best opportunities in the oil and gas industry.

Josh kicks things off by presenting his evaluations on the current landscape for energy stocks. He sees increasing geopolitical risk in the larger oil and gas companies. He also says that many of them have lost a lot of value as well. He then discusses the two biggest global risks in the oil and gas sector that he cautions investors to stay away from. Despite these challenges, Josh says that smaller oil and gas producers are where he sees the best opportunity in the sector.

Next, Josh shares why he chose oil and gas as his primary investment focus. He also reflects on the risks and mistakes that led him to the successes that he has today. Josh follows that up by addressing how technological advancements have contributed to the decrease in the oil-rig count. However, despite this appearing to be a negative scenario, Josh says that tailwinds are emerging from production going down. And he believes that oil production is going to be a critical topic during the 2028 presidential election, if not sooner.

Finally, Josh goes into depth on a company that he's fond of. He also gives his thoughts on the future of oil and where he thinks certain subsectors could grow, especially with regard to demand. But he stresses that he's not a universal commodity bull and says there's one commodity that he's less optimistic about. However, investors should still be careful overall about where they put their money.

0:00 Evaluating the oil and gas landscape; Geopolitical risks; Strong smaller companies

17:22 Why Josh focuses on oil and gas; The risks and mistakes that led to success; The 2028 election

42:17 One company Josh likes; The future of oil; One commodity Josh is less optimistic about

52:02 Dan and Corey's final thoughts