Before the Blackouts
There’s a new energy trend quietly building momentum — one that could help solve the world’s growing hunger for electricity.
Let me explain. We’re entering a phase of exponential demand in electricity. And honestly, I don’t think the world is ready for what’s coming. I don’t understand why we’re not more concerned about it.
Think about it — the global population is now the highest it’s ever been. Add to that the massive surge in data usage from things like social media, cloud computing, and streaming apps like Netflix. Now layer on top the explosion of AI — with new AI agents set to run tasks on our phones, and entire fleets of servers powering generative tools behind the scenes.
And that’s before we even get to robots and robotaxis that are just starting to roll out. It’s a tidal wave of demand for electricity — and right now, we don’t have the supply to match it.
For over a year, I’ve been thinking a lot about the electricity demand surge that’s coming — and I’ve been looking for a way to get in on this sector. I think I finally found an early trend that’s both under the radar and full of potential. While reading through Stansberry’s "Commodities Supercycles" report, I came across something that caught my attention: a technology called Enhanced Geothermal Systems, or EGS. It sounds promising — and it’s definitely worth a closer look.
Tapping the Heat Beneath Our Feet
Traditional geothermal energy works by tapping into underground reservoirs of ultra-hot water. If the right combination of heat, water, and pressure exists deep below the surface, a well is drilled to reach it. The hot water rises as steam, which is then used to spin turbines and produce electricity. But it only works in places where the geology is just right — where natural heat, steam, and underground water are all present in the right combination. Think Iceland or parts of California.
EGS flips the script. Instead of waiting for perfect conditions, engineers create them. In areas where the rock is hot but dry, water is injected and fractures are created underground. That water then circulates through the hot rock, gets heated, and comes back to the surface where it can produce electricity. It’s like building your own geothermal field anywhere you want.
And here's the part that excites me most: EGS provides 24/7 baseload power. Unlike solar or wind, it's not dependent on weather or daylight. And unlike nuclear, it doesn't require decades to build or raise the same level of regulatory concern.
Another big advantage? EGS systems can be designed as closed-loop, which means they recycle the same water over and over again without wasting it. This is especially important in today’s world, where water is a growing concern and the global population is at an all-time high.
A few startups are beginning to emerge in this space. One of them is called Fervo Energy. They’re working on next-generation geothermal projects and have signed a deal with Google to supply clean energy to data centers. In Utah, they’re developing a project called "Cape Station." Once it’s up and running (expected in 2028), this single site could produce enough electricity to power hundreds of thousands of homes — showing just how much potential this new type of geothermal energy really has.
There’s also Eavor Technologies, based in Canada, which is building closed-loop systems in Europe and has a development agreement for up to 200 MW in California. Another one to keep an eye on is Quaise Energy, which is taking a more radical approach by developing millimeter-wave drilling tech to tap into superdeep geothermal energy. Millimeter-wave refers to a type of high-frequency electromagnetic wave that can be used to vaporize rock, allowing drilling far deeper than conventional methods.
Sounds promising, right? But here’s the catch: these are all private companies. That means regular investors like us can’t buy shares in them yet. Unless you’re a venture capitalist or part of an investment fund, you're stuck watching from the sidelines — at least for now.
But there is a way to get indirect exposure.
The Perfect Picks and Shovel Business.
Interestingly, the drilling process used in EGS is very similar to hydraulic fracturing — or fracking — used in oil and gas. In both cases, a well is drilled deep into the earth, then pressurized fluid is injected to create cracks in the rock. For EGS, those cracks allow water to circulate through hot rock layers and return to the surface as a clean heat source. The technique, equipment, and expertise overlap significantly with shale oil drilling, which is why companies like Helmerich & Payne (NYSE:HP) and Nabors Industries (NYSE:NBR) are so well-positioned to support — and profit from — this emerging energy trend.
These companies own and operate the high-spec drilling rigs that will be needed to drill these EGS projects. They’re the “picks and shovels” of the coming geothermal rush. Not only that, but both companies have taken equity stakes in these EGS startups. For example, HP has participated in the funding rounds of Fervo and Eavor, two startups working on advanced geothermal projects, while Nabors has made early investments in Quaise, Sage Geosystems, and GA Drilling, each exploring different approaches to unlocking geothermal heat. These aren’t passive positions either — they come with field support, technical collaboration, and future business opportunities.
From a financial perspective, HP looks stronger. It has a healthier balance sheet, lower debt, and pays a dividend around 5.5%. NBR is more leveraged, though more aggressive in its EGS bets.
I prefer to be more conservative with my money So I'll focus on HP.
HP makes its money by leasing out drilling rigs to oil and gas companies. They get paid daily for active rigs and move on once a well is drilled. The business is split into three segments: North America land rigs (their main moneymaker), international rigs, and offshore Gulf of Mexico rigs. Most of their revenue comes from the U.S., where they operate about 25% of all active land rigs.
What gives HP an edge is their proprietary FlexRig® system — a type of high-performance drilling rig they designed in-house. One of the unique features of the FlexRig is that it can "walk" — it moves from one well pad to the next without needing to be taken apart and rebuilt.
This is a big deal because in many oil and gas fields (and soon, EGS projects), multiple wells are drilled from a single pad or from closely spaced pads. After each well is completed, the rig often needs to move a short distance — sometimes just 20 to 50 feet — to start the next one. Traditional rigs have to be disassembled, trucked over, and rebuilt, which takes time and costs money. FlexRigs use hydraulic legs to lift and move themselves into position — saving days of downtime and improving project efficiency.
These rigs are not just for oil anymore. HP is now deploying them in early EGS projects through their partnerships with startups like Fervo and Eavor. It’s a smart way to take proven shale drilling technology and apply it to the next frontier in clean energy.
Trendpost Takeaway
From a financial standpoint, Helmerich & Payne is in a solid position — but it’s not without risk.
As of March 31, 2025, the company reported roughly $200 million in unrestricted cash, with current assets of $1.5 billion compared to $887 million in current liabilities. This gives them a comfortable liquidity position. However, their total debt increased to $2.2 billion from $1.8 billion in September 2024, primarily due to the acquisition of KCA Deutag. That acquisition expands HP’s international reach, especially into the Middle East, which could pay off long-term.
Revenue for the most recent quarter (Q2 2025) came in at $1.01 billion, up from $685 million a year ago. There are currently 99 million shares outstanding.
That said, this is still a drilling company, and drilling companies are tied to the price of oil. If oil prices fall — and I think there’s a good chance they could — drilling activity may slow down, and that wouldn’t be good for HP’s core business.
So while HP might be one of the best backdoor ways to get exposure to the Enhanced Geothermal Systems (EGS) trend, it’s not without volatility. The stock could head lower from here, and personally, I think a better entry point may present itself.
If I had the option, I’d rather invest directly in Fervo or Eavor. But since that’s not on the table right now, I’m keeping my eyes open for other alternative energy opportunities — especially ones like EGS that offer small-footprint, clean, and 24/7 renewable energy solutions. Unlike solar and wind, these systems don’t stop when the sun sets or the wind dies down.
Is Canada For Sale?
On May 27, 2025, one of the holdings in my Trendpost portfolio — InterRent — received an offer to be taken private. The deal values the company at around $4 billion, with unitholders offered $13.55 per unit in an all-cash transaction. It’s a 35% premium over the price back in early March, and a 29% premium over its 90-day average.
Personally, I’m not thrilled. I bought InterRent for the monthly income. I’d be happier to hold it long term and let the cash flow accumulate. That’s why I owned the stock in the first place — not for a one-time payday, but for the consistent, passive income.
This development also raised a bigger question in my mind: Is Canada for sale? More and more, I worry that high-quality Canadian companies — especially ones with stable cash flows — are going to be picked off by foreign buyers or large pension groups. The InterRent offer includes Singapore’s sovereign wealth fund GIC and CLV Group, led by InterRent’s own executive chair. It’s a trend I’ll be watching closely — not just for what it means for this specific stock, but for the broader investment landscape here at home.
Speaking of the investment landscape — it feels like market euphoria is back. The fear that gripped the market in April, when tariffs rattled investors, seems like a distant memory now.
I’m not complaining. My portfolio is up nicely. And, I’m sitting on a large cash position — about 60% — and most of my holdings are focused on producing income. That’s been my core strategy.
But I’ll be honest: I still think we’re getting close to a breaking point. Unemployment in Canada looks set to rise. I expect a slowdown across several sectors, especially real estate and condo construction. The cracks are forming, and I think we’re headed for a major economic slowdown.
At the same time, geopolitical risks are simmering in the background. If they boil over, we could see a wave of military escalation — and with that, a surge in defense spending. That scenario would likely boost demand for commodities while hitting other sectors hard.
So my focus remains on sectors that feel essential: energy, commodities, and necessities. That includes apartment REITs, utilities, and income-generating assets like Bitcoin and Etherium ETFs. I want to be positioned in assets that can weather storms — and still pay me while I wait.
Remember that the content of this newsletter is neither a stock recommendation nor investment advice. This is just something to consider. You can access my watchlist and portfolio through the link below. By clicking the link below you accept all responsibility for any potential losses that might result from buying any of the stocks mentioned in this newsletter.