Chevron Is Still the Strongest Energy Stock
Oil prices are in a terrible funk thanks to the demand drop-off related to efforts to slow the spread of COVID-19. Since oil is a commodity, there's nothing that drillers can do about that other than make sure they are prepared to deal with the headwinds. Integrated giant Chevron (NYSE: CVX) is one of the best positioned to muddle through the downturn.
To give you a picture of just how difficult things are today for energy companies, consider that a key U.S. oil benchmark price fell below zero earlier in the year. Think about that: Oil companies were, effectively, paying customers to take oil. There were technical reasons for the price drop, and it was brief, but oil has remained painfully low throughout 2020. Some once-proud companies have succumbed to bankruptcy, like U.S. onshore pioneer Chesapeake Energy. Other companies have slashed their dividends, announcing that they have basically given up on oil and are looking to shift toward clean energy. BP is probably the biggest name here, having announced that it believes that peak oil demand is already behind us.
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Source Fool.com
