Posted 7 Feb. 2023 at 01:19 PMUpdated Feb 7. 2023 at 15:54
The major European oil companies are all trading at a lower price than the major US energy companies. On the one hand, this is because US operators have historically been more shareholder-oriented and have delivered better results to shareholders. On the other hand, the movement in favor of Environmental, Social and Governance (ESG) criteria has been much stronger in Europe. Investors have not always prioritized profits. Finally, major US oil companies are focused on oil and gas exploration and production and are not diversifying into all activities due to the energy transition.
However, the energy transition is an incredibly exciting phenomenon that opens up new opportunities (renewable and fossil). Energy stocks could again lead the way in 2023, as they have the highest sales and earnings forecasts. Natural gas prices are now looking “soft” due to winter heat in Europe, but they have highlighted the fact that the United States is no longer supporting crude oil prices with revenues from the Strategic Petroleum Reserve. So it’s time for seasonal demand to start pushing up crude prices.
