Better Buy: ExxonMobil vs. Chevron Corporation
The problems facing the oil industry are intense, and they're pushing smaller and weaker names into bankruptcy. That will likely be a net benefit for big names like ExxonMobil (NYSE: XOM) and Chevron (NYSE: CVX), as it helps to clear the current supply/demand imbalance. But surviving this rough patch may still require big changes. One of these two U.S. energy companies looks better prepared for ongoing adversity than the other.
Right now, the biggest issue facing energy stocks is low oil and natural gas prices. The proximal cause of the pain is the economic shutdowns being used to slow the spread of the coronavirus, which has led to a massive decline in demand. However, there's still a bigger issue taking shape that has been growing in importance for years: increasing U.S. onshore production. While OPEC has been curtailing production to offset U.S. output, the world entered 2020 with more oil being produced than it was using. That has amplified the pain.
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Source Fool.com