This Is My Favorite Energy Stock Right Now
In the middle of the pandemic downturn in the energy sector I switched from ExxonMobil (NYSE: XOM) to TotalEnergies (NYSE: TTE). While the impetus for the move was collecting some tax losses to offset gains elsewhere in my portfolio, I've been extremely pleased with the shift. And with every quarter that goes by, I get happier and happier that I now own TotalEnergies. Here's the most recent update from the company's annual shareholder meeting to explain why this remains the case.
The broader energy sector is in a state of flux today as the world looks to reduce the amount of carbon-based fuel it uses in an effort to slow global warming. This is a complex issue, and the transition from carbon fuels to cleaner energy sources is likely to take a long time (think decades).
However, there are some top-level implications for more conservative investors like myself. The big one is that I don't want to own a company that is tied completely to drilling for oil, which, along with coal, is among the dirtiest fuel choices around. That's why an integrated oil giant like TotalEnergies, which spans from the upstream (drilling) to the downstream (refining and chemicals) spaces is a good starting choice.
Source Fool.com
