So I keep looking at XOM as it drops. I hear all about the "future" of oil and how renewable sources are making such gains and becoming much more feasible as energy sources, but I would think that Exxon, with their huge presence in the energy industry, would be positioning themselves to stay relevant for the next half century. Opinions from people that are more involved in the industry and XOM in particular?

I keep buying it. Gimme that dividend.

turfman80 said:

---

So I keep looking at XOM as it drops. I hear all about the "future" of oil and how renewable sources are making such gains and becoming much more feasible as energy sources, but I would think that Exxon, with their huge presence in the energy industry, would be positioning themselves to stay relevant for the next half century. Opinions from people that are more involved in the industry and XOM in particular?

---

China is about to start building the crap out of electric cars and the car industry is gearing up for electric production. I share your hesitancy on buying their stock and haven't heard of any transformative things they are planning to do to "get in the game".

I sold several puts in VDE recently, which is a derivative of a derivative bet on XOM.

If I understand it correctly, at the current rates, when the music stops they will likely be a smaller company. If prices pop etc.... it maybe another story.

A decade ago I thought they were prudent at their M&A. Now, I think time will tell. They have a lot of talent and a good reputation.

Re: renewable
I wouldn't bet on a buggy whip mfr to diversify me into automobiles. I dont think XOM is the best bet (nimble etc.) to get you renewable exposure. Jeff Bezos can create cannibalization within his business, very few others are comfortable with it. Buy renewables directly if you want hedging/diversification.

A decade ago, I took a renewable company public. At that time we needed oil prices to be high it to sell renewable companies. Now TSLA goes parabolic when oil is at $50/ barrel.

When I was leaving banking 6ish years ago I did a strategy interview at Oncor. We spent half the time talking about the strains on T&D with electric cars plugging in to the grid and disruption from having to accept energy from decentralized renewables.

I work for a large O&G company and we're headed in the direction of "renewables" in earnest. It's never going to completely displace O&G, but what it does displace the majors will be there to benefit.

Beat the Hell said:

---

Is XOM in the oil business or energy business?

Blockbuster should have realized they were in the entertainment business and not the dvd business.

---

Just an FYI - XOM is in the oil business, the energy business, the refining business, and the chemicals business. They are about the only US major that is still this diverse. Chevron does exploration and refining, but spun off their chemical production. P66 just does refining. LyondellBasell does refining and chemicals but no oil exploration.

The reason this is important is because chemicals - particularly polyethylene - is taking a huge hit right now, mostLy due to tariffs. XOM chemicals division lost $350+ million just last quarter. That combined with the lower price of oil is causing them to get hit from both sides with no buffer (until the tariffs, chemicals was making up for losses on the oil side).

Blanco Ag said:

---

I'm not convinced EV's are ultimately more environmentally friendly than ICE's, and even if they are that electricity needs to be generated somehow.

I know it's trendy to hate on fossil fuel based companies, but I'll damn sure buy low.

---

For places like China, EVs dont need to be cleaner from cradle to grave or even on a per use basis...they just need to be cleaner at the site of use.

Having a coal plant 30 miles out of town replace 1,000,000 cars and buses is going to make the day to day lives of the city a **** ton better.

What do you guys think of KMI?

ENB, RDS A

Both value right now and great dividends

What medium to y'all use? Y'all buying yourselves or instructing someone?

Yukon Cornelius said:

---

What medium to y'all use? Y'all buying yourselves or instructing someone?

---

I don't recall why or how because I've owned it so long but all of my XOM is purchased and maintained at ComputerShare.

I've heard it a couple times now that some of these oil companies are about to go "out of favor" like tobacco companies did. The "average" investor might feel guilty owning them, but that doesn't mean they will be a bad investment. People will not want to invest because of environmental effects, just like they would feel guilty owning tobacco companies for their health effects.

However some of the tobacco companies have been great investments the last 10 years. And they bring with them high dividend yields. You can invest in Altria for example with a 7%+ yield. Not bad.

Ranger222 said:

---

I've heard it a couple times now that some of these oil companies are about to go "out of favor" like tobacco companies did. The "average" investor might feel guilty owning them, but that doesn't mean they will be a bad investment. People will not want to invest because of environmental effects, just like they would feel guilty owning tobacco companies for their health effects.

However some of the tobacco companies have been great investments the last 10 years. And they bring with them high dividend yields. You can invest in Altria for example with a 7%+ yield. Not bad.

---

No doubt this is happening but they aren't going anywhere considering the fact that green energy is a sham and doesn't work at any meaningful scale. Germany is the largest country to pledge full bore green and is quietly abandoning it because it doesn't work. Granted, I'm not sure what the hell they are going to do. They should just spool up their nuclear again but I'm sure they will face resistance to that.

Ranger222 said:

---

I've heard it a couple times now that some of these oil companies are about to go "out of favor" like tobacco companies did. The "average" investor might feel guilty owning them, but that doesn't mean they will be a bad investment. People will not want to invest because of environmental effects, just like they would feel guilty owning tobacco companies for their health effects.

However some of the tobacco companies have been great investments the last 10 years. And they bring with them high dividend yields. You can invest in Altria for example with a 7%+ yield. Not bad.

---

Who cares about staying in favor? This is about making money, not a popularity contest! I bought Altria bc all my friends from school and my ex wife smoked Marlboro lights. If I have to put up with all the second hand smoke, I damn sure am going to make money on it.

CHV vs XOM

Who do you all like better?

Give the recent price action, between those 2 I pick XOM. They both have different strategies. Exxon believe we're at the low end of the price cycle so they are choosing to invest now when everybody is cutting back. The hope is that when Exxon's projects finish, because everybody has cutback there will be shortages leading to price increases. Then everybody else will invest at high prices. It won't be until about 2022 their cashflow starts to turn. They are raising debt now and will for next couple years. If their thesis doesn't play out, it'll be a different ExxonMobil than we're used to. They need $65+ oil

Placed my order. Thanks for the alert

Buying tomorrow.

What do yall use to buy? Etrade or what?

Yukon Cornelius said:

---

What do yall use to buy? Etrade or what?

---

Fidelity

At what point does XOM become the "falling knife"? As a recent purchaser, i am hoping there will be a reversal in the near future.

It's getting ridiculous on some valuations. Must be pricing in big hits on demand now

Bought more at 53.77

DRE, agreed. CVX is positioned nicely and singularly focused on investor returns.