The World Has Less Than 80 Days of Oil Left in Reserve, and the Clock Is Ticking. These Stocks Win Either Way.

The biggest winners from high oil prices are upstream oil and gas producers. U.S.-based producers, such as Diamondback Energy (NASDAQ: FANG), are doing quite well because the geopolitical conflict in the Middle East hasn't affected their operations. But the upstream will get hit when oil prices eventually fall.

That's why long-term investors will appreciate midstream businesses like Energy Transfer (NYSE: ET), Enterprise Products Partners (NYSE: EPD), and Kinder Morgan (NYSE: KMI). It doesn't matter if oil prices are high or low; these energy businesses win either way.

The world's oil reserves are thinning out

The world has an oil buffer to protect against short-term supply shocks. This helps oil markets function, but those reserves aren't meant to cover a long disruption, like the one caused by the current geopolitical conflict. The reserve was once 80 days of oil, but it's getting lower each day. U.S. midstream businesses couldn't care less about the global oil reserve right now. In fact, their businesses are booming.

The volume of energy Energy Transfer moved through its energy infrastructure system in the first quarter of 2026 rose across its business, year over year. The master limited partnership's (MLP's) distributable cash flow increased nearly 17% year over year. And management is so optimistic that it increased its full-year guidance. Energy Transfer isn't alone in its success.

Enterprise Products Partners saw record volumes across many of its divisions in the first quarter, reporting a 5% increase in distributable cash flow. Kinder Morgan also benefited from strong volumes, reporting strong first-quarter results.

There are two facts to consider here. First, the North American market isn't impacted by the Middle East conflict. Thus, the energy sector is operating normally and may be seeing a slight uptick in demand from other countries. That's good for Energy Transfer and its peers.

Second, long-term demand for North American oil and natural gas could increase due to the geopolitical conflict if countries reconsider energy security. Stable financial and political systems could make North American energy a go-to solution for countries worried about future supply disruptions. That would mean more even volume for Energy Transfer and its peers.

Energy Transfer and its midstream peers are boring toll takers

The key is that Energy Transfer, Enterprise, and Kinder Morgan get paid for moving energy through their systems. The price of what is being moved is less important than the volume being moved. Indeed, the fee income they generate is relatively stable over time, which supports lofty yields. Energy Transfer, for example, has a 6.6% distribution yield, with Enterprise at 5.5%, and Kinder Morgan paying 3.4%.

If you are looking for energy stocks that win no matter what happens in the Middle East, consider North American midstream giants like Energy Transfer and its midstream peers.

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kinder Morgan. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.