Chevron’s CEO Is Warning of a 1970s-Style Oil Crisis.
These 3 Energy Stocks Could Surge Before Summer
On May 4, at the Milken Institute’s Global Conference, Chevron (NYSE: CVX) CEO Mike Wirth laid out the argument that the Strait of Hormuz’s closure, coupled with the resultant impact on global crude oil inventory and strategic reserves, point to a strong chance of an oil shortage, akin to the oil supply shocks of the 1970s. Only time will tell whether Wirth’s forecast pans out, but this possible headwind could mean an investing opportunity may be opening up. U.S.-based downstream and midstream energy companies stand to benefit from falling overseas supply, which is good news for the following energy stocks: ConocoPhillips (NYSE: COP), Energy Transfer (NYSE: ET), and Occidental Petroleum (NYSE: OXY).
ConocoPhillips stands far from the crisis zone ConocoPhillips has a substantial production presence in the United States. It has much of its production portfolio in oil-rich regions of the country, like Alaska’s Prudhoe Bay, the Bakken region of North Dakota and Montana, and in West Texas’s Delaware and Midland Basins. Better yet, ConocoPhillips’ international production locations are far from the current Mideast conflict.