3 Top-Notch Oil & Gas Companies: Exxon Mobil, ConocoPhillips, And Marathon Petroleum

NYSE: XOM | Exxon Mobil Corporation  News, Ratings, and Charts

The oil and gas industry was one of the worst-hit industries in 2020 owing to the global shut down of businesses and economic activities since March last year. The COVID-19 pandemic triggered a major collapse in oil prices, intensified by a short-lived yet aggressive Saudi Arabia-Russia price war. Domestic gasoline demand fell by 45% in April 2020, and lower oil prices drove down associated gas production by potentially 10 billion cubic feet per day in 2020.

However, after a period of extraordinary turbulence, oil prices stabilized in mid-2020. Prices picked up strongly as optimism grew around a COVID-19 vaccine. On the supply side, the OPEC+ alliance came to a settlement and implemented production cuts and several other actions to curb oil price volatility. The 13th OPEC and non-OPEC Ministerial Meeting (ONOMM) held on January 5 reconfirmed the decision made at the 12th ONOMM to increase production by 0.5 mb/d beginning this month to meet rising demand.

With the gradual resumption of economic activity, demand for crude oil has been recovering from the all-time lows and is expected to return to near pre-pandemic levels soon. While the clean energy drive is a potential threat to this industry, the demand for crude oil is expected to hold steady for the foreseeable future because the cost of renewable energy infrastructure is very high. With most countries focusing on economic recovery over the next couple of years, we think companies such as Exxon Mobil Corporation (XOM - Get Rating), ConocoPhillips (COP - Get Rating), and Marathon Petroleum Corporation (MPC - Get Rating) will deliver promising results in the upcoming quarters.

Exxon Mobil Corporation (XOM - Get Rating)

XOM is one of the largest refiners and marketers of petroleum products and other specialty products. The company operates through Upstream, Downstream, and Chemical segments. The company is primarily involved in the exploration and production of crude oil and natural gas.

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