This Is My Favorite Energy Stock Right Now
Oil discoveries hit their lowest level since 1946 last year as energy companies diverted capital spending from new projects and exploration to their proven money makers. It resulted needing to conserve cash after the pandemic drove demand dramatically lower.
It's not that there is no oil left to find, but rather the oil companies weren't willing to risk the capital to find it. That's changing now as oil prices rise and profits soar. ExxonMobil intends to finance between $20 billion and $25 billion worth of new projects this year, up from $16 billion last year, though that's still below the $33 billion it spent before the COVID outbreak.
Image source: Getty Images.
Source Fool.com
