Oil prices have been climbing recently, and both Exxon and Chevron have seen their stock prices follow suit. But, I’ve been wondering short term gains are great, but can these two stocks really sustain long term growth just based on rising oil prices? On top of that, with more countries ramping up support for renewable energy, will the big oil players like these be left behind?
Personally, I think that while higher oil prices will boost profits, especially for companies like XOM and CVX, the growing push for renewable energy is something that can’t be ignored. With the Biden administration pushing for more clean energy initiatives and Europe speeding up its green transition, traditional oil companies are definitely facing more pressure.
I’ve also noticed that Chevron and Exxon are trying to adapt by investing in renewables, but they’re still mostly dependent on oil and gas. Do you guys think this transition will actually work out, or is it just a “temporary” shift? Can they really keep up with the demand for greener alternatives?
And let’s not forget about the risk of oil prices dropping. When oil prices fell last year, both XOM and CVX felt the impact. How do you guys see the effect of oil price fluctuations on their long term performance? Right now, holding these might look good short term, but do you think they can keep growing in the long run?
What’s your take do you think these stocks are still a good hold, or have they become overpriced at this point? Would love to hear everyone’s thoughts!