On June 25th, 2025, we hosted the inaugural PRAGMA New York Energy Investment Series at Nasdaq-bringing together over 200 senior leaders from across the energy, investment, and finance sectors. The timing couldn’t have been more relevant: recent geopolitical tensions have once again thrust energy security into the global spotlight, underscoring how a retreat from pro-energy policy can expose economies to price shocks and supply disruptions.
When we launched PRAGMA in September 2024, it was driven by a growing frustration with the lack of nuanced dialogue around the energy transition. Energy illiteracy had reached an all-time high, with many outside the sector viewing the future of energy through a binary lens, fossil vs. green, ignoring the scale, complexity, and infrastructure constraints of transitioning a global system while keeping economies growing.
At PRAGMA, our goal is to change the narrative-to foster pragmatic, data-driven conversations with voices beyond the energy echo chamber.
Together in New York, we brought that mission to life.
The Context: Rising Demand, Systemic Strain
From booming population and industrial growth to the surge in AI-powered data infrastructure, global energy demand is increasing rapidly. Today’s energy systems are under pressure from multiple sides:
- Generative AI is forecast to consume over 135 TWh annually, equivalent to powering Tokyo for almost half a year.
- Each hyperscale data center now consumes 20–50 MW, pushing power systems to their limits.
- Three-quarters of the world’s population live in countries that are net importers of fossil fuels, making secure access to energy a development imperative.
- The U.S. power grid, already strained, cannot meet this demand without hydrocarbons in the mix. Solar and wind, while crucial, cannot scale quickly enough on their own.
- Domestic gas demand in the U.S. is expected to grow by over 15% by 2035, driven by both LNG exports and rising power generation needs—especially from AI and cloud infrastructure.
- Geopolitical instability—from Russia’s invasion of Ukraine to Middle East tensions—have exposed energy security vulnerabilities, prompting a renewed focus on domestic supply chains and infrastructure resilience.
- Permitting bottlenecks and regulatory delays are slowing the deployment of both fossil and renewable projects, leaving many markets vulnerable to price shocks and reliability risks.
- Global coal consumption is growing, reaching record highs in 2024, complicating emissions reduction goals and reinforcing the need for transitional fuels like natural gas.
In short, the energy system is in transition—but also under tremendous strain. Navigating this moment requires pragmatism, investment, and a diversified energy mix.
Highlights from the Workshop Series
1. LP & Family Office Goals and Strategies
Theme: Empowering LPs and Family Offices to identify high-upside, low-risk opportunities in today’s evolving energy landscape.
- Capital is returning to energy—but with greater scrutiny.
- Energy is regaining its place as a core sector in diversified portfolios, especially as institutional capital pulls back.
- LPs are considering direct exposure models and non-operated interests, offering cash flow, lower risk, and enhanced control.
- Return of capital is the focus, not blind production growth. Investors want discipline, predictability, and long-term value creation.
2. Upstream Strategies
Theme: Helping upstream operators secure capital and drive efficiency by aligning with investor criteria and leveraging AI to scale and modernize operations.
- Efficiency, innovation, and integration post-M&A are the main focus areas for O&G companies.
- Companies are maximizing value by integrating acquisitions, using AI to optimize drilling, chemical usage, and asset longevity.
- Far from running out of inventory, operators are focused on re-fracs, re-completions, and drilling in-field to extend asset life.
- Capital allocation is shifting from growth to continuous improvement—driving returns through smarter design and operational discipline.
3. Pragmatic Decarbonization
Theme: Guiding O&G companies and investors toward pragmatic decarbonization strategies that balance regulatory compliance, operational efficiency, and strong returns.
- Decarbonization doesn’t mean abandoning oil and gas.
- Operators are staying within their core competencies while pursuing credible emissions reduction strategies.
- Emissions reduction, monitoring, and reporting are no longer viewed as standalone efforts but as integral to best business practice—keeping more product in the pipe is now recognized as a key efficiency driver.
- Investor priorities are evolving — return generation is once again in focus, but must be aligned with decarbonization strategies that are both technically viable and commercially sound.
- Solutions highlighted included emissions monitoring, low-carbon fuels, and breakthrough technologies for hard-to-abate segments.
4. Natural Gas & Power
Theme: Highlighting the critical role of natural gas in energy security while exploring solutions to meet rising demand and accelerate project development.
- Natural gas is essential for domestic resilience, global energy equity, and both national and energy security.
- U.S. natural gas remains the most effective near-term solution for reducing global GHG emissions at scale—displacing coal and higher-emission gas producers, especially as AI-driven power demand surges.
- LNG infrastructure growth is strong, with 185 mtpa under construction and latent demand set to absorb most excess capacity.
- Gas remains cost-competitive (~$3–4/MMBtu long term), but delivery to market is challenged by infrastructure constraints and policy uncertainty.
The Bigger Picture: Reframing the Narrative
Energy is always in transition. The real challenge is not whether to change, but how to do it responsibly and inclusively. Access to affordable, reliable energy remains the single most powerful driver of human development—and yet we continue to overlook this in mainstream narratives.
At PRAGMA, we were proud to see generalists, specialists, investors, and innovators come together to have honest, data-driven conversations about energy’s role in prosperity, security, and innovation.
We extend our deepest thanks to our Advisory Board (Brian Gilvary, Toby Z. Rice, Mark Viviano, and Stephen Trauber), our Committee Members, and Partners for helping make the Series such a compelling day of insight, challenge, and collaboration.
The future of energy is not binary. It's pragmatic. It's all of the above. And it’s going to take all of us.
