Transocean (RIG) Jumps 8% as DOE Highlights Increased Need for Energy Supply

Transocean Ltd. (NYSE:RIG) is one of These 10 Stocks Are Making Big Moves.

Transocean ended two straight days of losses on Tuesday, jumping 8.12 percent to close at $2.93 apiece following the Department of Energy’s warning that blackouts could spike by 100 times by 2030 if supplies fail to cover peak demand.

In a report, the DOE cited the huge difference between electricity demand and supply, especially with the growing energy needs of the power-hungry artificial intelligence sector.

The department said that it expects 209 gigawatts of new electricity to be generated by 2030 and replace 104 GW of plant retirements. However, only 22 GW of the new energy will come from power sources that provide stable and continuous power supply, raising outage risk in several regions.

An aerial view of an oil rig with drillers in hard hats working on the platform.

While the DOE’s findings highlighted the risks for the overall sector, its increasing focus also underscored the need for energy security, which could strengthen support for traditional energy sources like oil and gas, and in turn, benefit oil and gas drilling operators such as Transocean Ltd. (NYSE:RIG).

With the global rising demand and utilities scrambling to secure more energy sources, Transocean Ltd. (NYSE:RIG) could help close the supply gap through ramped-up drilling operations.

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Disclosure: None. This article is originally published at Insider Monkey.