When investors think about the annual summer driving season, oil and gasoline have historically been the primary focus. This year, oil and gasoline have been headline news daily due to the geopolitical conflict in the Middle East. That’s likely to remain the case regardless of how much people drive.
But high energy prices could shift demand, making electricity more important than ever. Three stocks you may want to keep an eye on are NextEra Energy(NYSE: NEE), Constellation Energy(NASDAQ: CEG), and Brookfield Renewable(NYSE: BEP)(NYSE: BEPC). Here’s a primer on each one.
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The EV fleet is bigger than ever before
Normally, driving season is about energy companies like integrated energy giant Chevron(NYSE: CVX) and refiner Valero(NYSE: VLO). Chevron’s business spans the entire energy value chain, from producing oil to transporting it and processing it into gasoline and other products. Valero sits at the end of the chain, transforming oil into other products. Energy companies like these will likely see a boost from driving season.
However, the bigger story today is the geopolitical conflict in the Middle East. It is an ongoing event that will likely have far more sway over energy prices and, thus, the performance of energy stocks, than the driving season. However, there’s another possible consequence from this conflict.
In early 2026, sales of used electric vehicles (EVs) spiked. One logical reason for that is high energy costs. Meanwhile, the percentage of EVs among all vehicles on the road is roughly 2%. Some might argue that 2% is a tiny number, which it is, but it represents more than 5.5 million vehicles. That’s a substantial number on an absolute basis, and with gasoline prices so high, consumers could favor EVs over combustion engine vehicles.
Demand is already high for electricity
Potential electricity demand this driving season will add to the demand already coming from data centers and artificial intelligence. The three together are key factors in the expected step change in overall demand, with electricity demand projected to grow by 60% between 2025 and 2045. For reference, demand only grew 9% between 2005 and 2025. Those stats come from NextEra Energy, the world’s largest utility. It is also one of the world’s largest producers of solar and wind power.
NextEra is set to get even larger, with plans to buy competitor Dominion Energy(NYSE: D). That will expand its geographic reach to four states and set it up for even more rapid long-term growth. If high oil prices lead consumers to use more electricity this driving season, the long-term story could get even better here. In other words, 2026 could be an important inflection point for the business and the stock.
Nuclear power is also becoming an increasingly important source of electricity. Contract power generator Constellation Energy has one of the largest U.S. fleets of nuclear reactors. It is already seeing increased demand from data centers, and transportation demand could be icing on the cake. Notably, it recently acquired Calpine, a company focused on natural gas power plants. Those often get tapped during peak demand periods, like when it is warm in the summer. If this year’s driving season comes with an electric demand spike in transportation, Constellation Energy could be a big near-term beneficiary.
Increased demand for electricity from transportation will also be a long-term benefit to Brookfield Renewable. This company has a global portfolio of renewable power assets. It sells power under long-term contracts, so there won’t likely be a near-term impact on its business. However, if this driving season marks a shift toward electric vehicles, the clean energy Brookfield Renewable provides could become increasingly important globally. That could easily increase the rate at which Brookfield Renewable builds new assets, which investors would likely price into the stock pretty quickly.
This summer could be the leading edge of an important change
Electricity is an increasingly important source of energy. When oil prices are low, the transition from carbon energy sources to electricity isn’t as pressing. However, with oil prices at lofty levels, electricity looks increasingly attractive. This year’s driving season could be an important test.
Constellation Energy is a more growth-oriented story, noting it only has a dividend yield of around 0.6%. However, NextEra Energy’s yield is 2.9%, and Brookfield Renewable Partners’ yield is 4.2%. Both have solid histories of annual dividend increases, making them attractive to dividend investors.
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Reuben Gregg Brewer has positions in Brookfield Renewable Partners. The Motley Fool has positions in and recommends Chevron, Constellation Energy, and NextEra Energy. The Motley Fool recommends Brookfield Renewable, Brookfield Renewable Partners, and Dominion Energy. The Motley Fool has a disclosure policy.
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