Amidst a backdrop of changing markets, tariffs and ongoing world events, our latest energy transition dinner in Houston, Texas, took place at a time where navigating ever-changing economic and political landscapes has become the norm.

 

In the first 100 days of President Trump’s second term, markets dropped in a brutal stock market rout, oil prices slumped by 20 percent and the dollar index market dropped nine percent sending concern across the globe. However, by mid-May, there was a significant de-escalation between the US and China as tariffs were dropped or suspended, giving industries a new hope, including the energy sector.

 

New energy secretary and US LNG

The appointment of Chris Wright as US Secretary of Energy – former CEO of Liberty Energy – was welcomed by many at our energy transition dinner, due to his support of all forms of energy and his reputation for having a commercial and pragmatic attitude towards achieving energy goals. As policies change and the new administration focuses on US market dominance and what appears to be away from net zero in favour of affordability and efficiency, Wright’s appointment provides many leaders with a sense of ease, particularly as it’s still unclear how energy transition investment will fare.

As tariff negotiations continue on, many countries are showing a willingness to buy US LNG as a way to curry favour with President Trump. For the administration, this is proving a successful tactic not just for negotiations, but ensuring long-term investment to deliver on their US LBG projects and ambitions.

 

Have we stalled?

As noted in our previous papers, “Shareholder Demand and the Age of Technology,” and “New President, New Approach?” where some countries are reducing their net zero projects, there are a number of nations who have gathered significant momentum. China in particular has seen success in their ability to create renewable power and use of electric cars and Sweden has already hit its target of producing 50 per cent renewable energy, eight years ahead of schedule.

This is all positive news and ensure we all move towards net zero, however, the increased usage of power-hungry AI has now gone from wanting green energy to ‘any’ energy, which could derail efforts if not addressed properly. Consumers are proving to be a steady hand at pressuring companies to go green, but as the cost of living continues to grow, will this pressure continue?

 

The continued popularity of nuclear power

A common theme we’ve seen over the past 12 months is the rise in popularity for nuclear power. E-commerce giant, Amazon, recently announced their backing of Small Modular Reactors (SMR) for a number of projects across the US, and in Canada, Ontario Power Generation is beginning construction on the first of four SMRs at the Darlington nuclear site, the first of its kind in the G7.

While the biggest hurdle for nuclear is public perception, if firms are to win over the public, things could move relatively quickly, but only if they’re won over sooner rather than later as those with the knowledge are moving towards retirement age.

 

So far, 2025 has seen a lot of challenges, and there are likely to be more to come. Tariff negotiations remain ongoing but appear to be moving in a positive direction renewing hope for many, albeit a cautious hope. What we have seen is that there are successes to celebrate in the journey to net zero, but investment and policy remain at the centre, what will come from the second half of the calendar year? Many still don’t want to anticipate too much, but the nuclear appears to be a staple for leaders in the industry.

Download the full white paper, “Tariffs, turmoil and time for nuclear?” to discover what else was discussed at the dinner and how leaders are viewing the energy industry.