New study suggests a big shift is coming for a key part of the economy: 'Investors should take note'

Experts are sounding the alarm that the fossil fuel industry may be losing its grip on the market. A new analysis shows that oil and gas stocks are underperforming, with companies like Solaris Energy Infrastructure, Inc. seeing sharp declines.

While that might sound like bad news, it's actually a positive sign of something bigger: the clean energy transition is reshaping the economy, and dirty energy sources are becoming a riskier bet. Oil and gas companies have already been on shaky ground. In 2024, fossil fuel stocks returned just 5.72%, while the broader market gained over 23%.

Now, in 2025, new trade policies are adding even more pressure. The U.S. recently doubled tariffs on Canadian steel and aluminum, key materials for oilfield services. That means higher costs for dirty energy companies — especially smaller ones like SEI, which rely on the spot market for supplies.

Between March 3 and March 10, SEI's stock dropped 32.28%, a sharp reversal after February's gains. While the company saw 28% revenue growth in Q4 2024, its earnings still fell short of expectations.

As dirty energy companies struggle, investors are moving their money elsewhere. Renewable energy is proving to be a more stable investment, offering stronger returns than the boom-and-bust cycles of oil and gas.

"The traditional fossil fuel business model faces structural risks in a decarbonizing world, and the industry has yet to demonstrate a coherent response to this reality," explains Connor Chung, an energy finance analyst at the Institute for Energy Economics and Financial Analysis.

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"Investors should take note that the industry has spent much of the last decade dragging down long-term investment portfolios."

This shift isn't just about investors — it's about jobs too. As capital flows into renewable energy, grid upgrades, and energy efficiency, new career opportunities are emerging. Unlike dirty energy sources, which rise and fall with commodity prices, the clean energy sector offers steady, long-term growth.

Even though some investment strategies focused on sustainability (ESG) haven't worked out, clean energy is still growing. Dirty energy sources are becoming a riskier bet, while renewables continue to prove they're a smart investment. The shift isn't just coming — it's already underway.

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