Where Will ExxonMobil Be in 5 Year?
The first big issue facing ExxonMobil (NYSE: XOM) today is the painfully low price of oil. That problem has set up a massive struggle for the global energy giant as it tries to maintain its dividend while continuing to invest in the projects it needs to sustain and grow production. And there's no easy solution.
The rise of the United States as a more material global producer of oil and gas in recent years pushed the world into a situation where supply was exceeding demand. It was a manageable imbalance, with OPEC working to cut supply to make room for expanding U.S. energy production. The global pandemic, however, and the economic shutdowns being used to slow its spread, have upended the situation. A massive decline in demand resulted in a vast oversupply in the energy industry. Oil prices plummeted, and excess production ended up in storage.
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Source Fool.com
