Just two years ago, the world’s giant oil producers seemed to be going the way of the typewriter industry. No one wanted oil—the price of a barrel fell below zero early in the pandemic.
stock crashed hard and was dumped from the Dow Jones Industrial Average after 92 years. It was starting to look like a prelude to the real extinction—the world’s transition to clean energy.
So much for that. The plunge turned into a surge, and the top oil-and-gas companies ended up rolling in cash. Exxon (ticker: XOM) is now a stock market star, with a gain of more than 60% in the turmoil of the past 12 months.
(CVX) is up nearly 50%. What’s more, the future has brightened considerably. Instead of being destroyed by the energy transition, Big Oil has emerged in a remarkably strong position to profit from it.