What is Energy Sector?
The energy sector spans upstream (exploration & production — ExxonMobil, Chevron, Shell, ONGC, Reliance), midstream (pipelines & storage), downstream (refiners), oilfield services (Schlumberger, Halliburton), and increasingly, renewables (NextEra, Iberdrola, Adani Green). Energy stocks are highly correlated with crude oil and natural gas prices.
Why it matters for investors
Energy is among the most cyclical and macro-sensitive sectors. Oil price spikes drive earnings windfalls; price collapses force capex cuts and dividend reviews. The energy transition adds structural complexity — traditional oil majors face long-term demand questions while investing in renewables.