The U.S. energy sector has been volatile over the past year. After a strong run in 2022, energy cooled in 2023 and has delivered more modest gains since. As of mid-2025, the S&P 500 Energy sector was up about 4% year-to-date, despite wide swings in oil and gas prices. Oil spiked above $80 in January, plunged below $60 in spring, then rebounded, while natural gas has seesawed amid an oversupplied market. This volatility masks a deeper story.