• 6 days Retail On Pace For Most Bankruptcies And Store Closures Ever In One Year: BDO
  • 10 minutes America Could Go Fully Electric Right Now
  • 4 hours Majors Oil COs diversify into Renewables ? What synergies forget have with Solar Panels and Wind Tirbines ? None !
  • 9 hours OP Kennedy article : "Trump blasts Biden Fracking Plan . . . "
  • 14 hours America's Frontline Doctors - Safely Start Living Again!
  • 19 hours France Sees 10.6% EV Market Share In September — 4× Growth Year On Year
  • 20 hours Conoco Pledges ‘Net-Zero’ Emissions in Break With U.S. Rivals
  • 15 hours Vote Biden for Higher Oil Prices
  • 2 days Something wicked this way comes
  • 2 days Permian in for Prosperous and Bright Future
  • 15 hours Tesla Model 3 Is September's Top Selling Car of All Vehicles in Switzerland
  • 34 mins Clean Energy Is Canceling Gas Plants
  • 3 hours "COVID Kills Another Oil Rally" by Tom Kool 10/16/2020
  • 20 hours TX NATGAS flaring
  • 1 day GPOR - Gulfport Oil - Why?
  • 1 day covid. stop the carriers and thus stop the virus.
  • 2 days A sneak peak into the US election
  • 3 days California’s Electric Vehicle Dream Has A Major Problem: No
Editorial Dept

Editorial Dept

More Info

Premium Content

Is It Finally Time To Buy Beaten Down Oil Majors?

A few weeks ago, when it was announced that Exxon Mobil (XOM) was being unceremoniously dumped from the Dow Jones Industrial Average, that news was bound to usher in another period of weakness for the once-dominant but already embattled U.S. oil company. At the time I thought that at some point, that selling would be overdone and XOM would represent value. That time has come and there are both fundamental and technical reasons to believe that.

Before we look at those though, lets address the elephant in the room. Energy, in general, and big oil, in particular, has had a very bad year. Hell, it has had a bad decade! That has led some prominent commentators, most notably CNBC’s Jim Cramer, to pronounce the sector “uninvestable” to use his word. You should, however, keep one thing in mind. Cramer and others of his ilk aren’t really in the investing or trading business, they are in the entertainment business. In that business, sensational beats accurate every time.

The fact is that discounting the recent major disruption, oil demand is still growing and is expected to continue to do so for several years to come, even in the face of EVs and concern about the climate. Even when, and if, that growth reverses, the decline in liquids demand is anticipated to be extremely slow. That means lower output than at the peak maybe, but as we are already at massively reduced production due to Covid-19, the trajectory from here can still be up.

That…





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News