Changing of the guard: NEE > CVX > XOM

[target2019]

This was a surprising headline, at least for me.

https://www.marketwatch.com/article...on-theyre-both-in-a-world-of-hurt-51602108553

Chevron (CVX) closed with a higher market value than Exxon Mobil (XOM) Tuesday for the first time on record

The drop in oil stocks overall reflects the lower price of oil, as well as the shift to renewable energy. Nowhere is that more clear than the fact that Next Era Energy (NEE), a utility that has made big bets on solar, has gained 20% this year, and now has a market cap of $145.484 billion, bigger than both Exxon and Chevron.

 

[Koolau]

I admit to knowing almost nothing about the specifics of this subject. Having said that, my gut tells me that a return to a roaring world economy (preceded by the 'death' of Covid 19) would change all of this in a hurry. The big energy stocks are down, as pointed out, because oil prices have dropped - a lot. Oil tends to be one of those commodities that can go from glut to surplus (and back) pretty much over night. I honestly don't know where that leaves NEE but it sure would change the numbers on CVX and XOM in a hurry.

I am all for alternative energy (as long as it's not subsidized) but I think of it as being more speculative than oil. I think of oil as "real" where as wind, solar and other renewables are more in the realm of speculation. I totally do not intend to start a food fight on this subject. I admit to knowing very little about it. I'm just telling you what my gut says - uneducated as it is, so YMMV.

 

[CaptTom]

Don't count NEE out just because oil prices go up. They're a pretty shrewd company which has positioned for the future of the energy business. Their bets are not only in solar, but in wind and - here's a long-term play - storage. True, they've been the beneficiaries of a lot of subsidies, but some of those are phasing out and they're still investing heavily. They're literally building wind and solar as fast as the components can be manufactured.

Disclaimer, yes, I own a little NEE. Should have sold it long ago because it doesn't fit my overall AA, but the stuff just keeps on growing and I'm feeling a bit of FOMO.