Banking On Renewables? Pick BP Stock Over Exxon

Banking On Renewables? Pick BP Stock Over Exxon

British gas and oil multinational company BP (British Petroleum) logo is seen on October 7, 2020 in ... [+] Warsaw, Poland. (Photo by Aleksander Kalka/NurPhoto via Getty Images)

In a historic move, Engine No.1, an activist investor group, won two seats on Exxon Mobil's (NYSE: XOM) board. Considering a paradigm shift at other major oil companies including, BP (NYSE: BP) and Royal Dutch Shell toward the renewable energy business, Exxon's focus on oil has been a concern for investors. Notably, the company projects its operating cash flow to increase from $30 billion in 2021 to around $35 billion in 2025, assisted by new upstream investments and recovering benchmark prices. Interestingly, the company is focused on atmospheric carbon capture instead of expanding its renewable energy portfolio. While investor returns from conventional oil and renewables depend on government policies and market factors, Trefis highlights the key differences in the long-term strategy of Exxon Mobil and BP in this article. Our interactive dashboard, Buy Or Fear Exxon Mobil Stock, depicts historical stock price, revenues, and earnings of Exxon Mobil.