Eric Nuttall’s Energy Picks: Built Like a Rig, Paying Like a Bank
Energy Titan Eric Nuttall Bets on Natural Gas and Cash-Flow Kings Amid Shifting Oil Dynamics
Editorial Team (ET)May 21, 2025
Eric Nuttall isn’t just bullish—he’s strategic. As partner and senior portfolio manager at Ninepoint Partners, Nuttall continues to carve a reputation for bold energy sector plays that often defy conventional caution. His latest commentary, delivered on BNN Bloomberg, is a resounding statement of conviction in the face of a complex and shifting energy market.
At the heart of Nuttall’s thesis lies a belief that natural gas is entering a new era. Not just a rebound or a blip—but a structural bull market. His reasoning is clear: a significant uptick in domestic demand is driving this surge, fueled primarily by the rapid expansion of liquefied natural gas (LNG) infrastructure and the growing need for power across North America. LNG Canada, set to begin operations soon, stands out as a major catalyst. Once online, it’s expected to shrink the current discount on Canadian gas from around $2 per thousand cubic feet (mcf) to closer to $1.10. That seemingly minor differential shift could dramatically widen margins and boost free cash flow for Canadian producers, repositioning them from discount players to margin machines.
Oil’s Short-Term Struggles vs. Long-Term Promise
While Nuttall’s natural gas stance is unquestionably optimistic, his take on oil is more tempered, at least in the short term. He forecasts oil prices trading between $50 and $60 per barrel over the next nine to twelve months—a range shaped by weakening demand, rising inventories, and continued friction in the global market. In his view, U.S. tariffs are beginning to bite, slowing global trade and weighing on oil consumption. Simultaneously, OPEC’s return of barrels to the market, spurred by quota cheating from Kazakhstan and Iraq, is exacerbating supply-side pressure. The implication is clear: without significant reductions in short-cycle U.S. shale production, the world will be staring down bloated inventories once again.
Yet, Nuttall isn’t sounding the death knell for oil—far from it. His medium-to-long-term view is decidedly bullish. He believes we are at the twilight of U.S. shale. The heady days of ever-growing American output are fading, as breakeven prices rise and drillers face exhaustion in their most productive plays. At $60 WTI or lower, he expects shale to falter. That decline, in turn, will help rebalance the market, especially as OPEC’s spare capacity tightens and non-OPEC production nears its peak over the next three to four years.
