The recession and BP (NYSE:BP) oil spill put oil companies out of favor, but even with the price of oil rebounding strongly from about $40 a barrel in March 2009, to $74 recently, shares of ExxonMobil (NYSE:XOM) have languished.
Exxon has positioned itself strongly for long-term growth and diversification with its acquisition of giant natural gas producer XTO Energy, but the question is if Exxon and others will be able to move in the short term.
Gas and oil prices appear to be under downward pressure again, as concerns over the recession and a slowing economy have consumers continuing to hold back on spending.
Natural gas is so abundant that it'll probably be years before we see prices move up.
But Exxon could go the lower costs route, creating some margins there based on scale alone.
Stability, growth, a decent dividend, and an assured market make Exxon a bargain at this time. It's a play for those will a longer term outlook on investing though, as short term there is still a lot of volatility in the gas and oil sector.
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