Which oil company has the best strategy?

Yesterday I read about Conoco's Permian selloff, last week we were discussing the pros and cons of growth vs profit strategies for U.S. shale companies and for the last year or more Big Oil has been in a battle over Shell/Total's diversification into renewables vs Exxon's doubling down on oil production - I feel like the variety in strategy between oil companies is as broad as it has been for a long time.

Any opinions on who has it right? And what a strong oil portfolio would look like?

For what it's worth, I feel that some of the 'growth focused' shale companies could be oversold, that Exxon could gain an advantage in the mid-term over Shell/TOT and Conoco is taking quite a risk...

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You always have the black sheep... don't forget that Total (TOT) isn't in on the Permian either.... a buy I'd say.

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Personally I'm always a long term trader - XOM possibly has short term upside but RDS.A/TOT are the stocks to hold. The Permian is a tough one but I like the Conoco strategy - when others are greedy be fearful.

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21 minutes ago, J Owens said:

Yesterday I read about Conoco's Permian selloff, last week we were discussing the pros and cons of growth vs profit strategies for U.S. shale companies and for the last year or more Big Oil has been in a battle over Shell/Total's diversification into renewables vs Exxon's doubling down on oil production - I feel like the variety in strategy between oil companies is as broad as it has been for a long time.

Any opinions on who has it right? And what a strong oil portfolio would look like?

For what it's worth, I feel that some of the 'growth focused' shale companies could be oversold, that Exxon could gain an advantage in the mid-term over Shell/TOT and Conoco is taking quite a risk...

I think any company not at least dipping its toes into the renewable sector is risky. Not just because renewables are the future (albeit a distant future), but because of the growing perception of the public as to "dirty fossil fuels". As more and more oil companies invest in renewables, the ones that don't are left looking like earth wreckers. Millennial investors, in particular, will frown on that if given another, greener option.

As for the Permian, it's pricey, and I don't think it's a bad thing for some oil companies to look at offloading some Permian assets to make better use of the money.

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There is far too much sentiment in these markets - oil is unpopular in today's world but it is 100 percent necessary and will be in the next decade. Like it or not - XOM is doing the sensible thing. I actually see RDS.A's pivot to gas as higher risk, a gas/LNG glut is very realistic in the next 5 years and it is gas, not oil, that renewables are threatening. Invest. In. Oil.

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5 minutes ago, Rodent said:

and what about Concho? Picked up some Permian stuff and was shunned. 

https://www.cnbc.com/2018/04/06/concho-resources-became-the-biggest-permian-player-and-investors-sold.html

 

Yeah, that was an interesting one - although I think it's more of a reflection of how much the market dislikes shale companies that focus on growth over profits rather than anything to do with the Permian... Then again, Permania surely has to end at some point...

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