Exxon Mobil Will Continue Moving Higher and Here’s WhyXOM) is probably the best and the safest stock to benefit from the recovery of crude.
Focus on LNG
Exxon Mobil is presently focused on strengthening its LNG substructure so that it can take benefit from most of the opportunity proposed by the market.
The most important thing to notice about Exxon Mobil is that the company has been working on surging this capacity further by introducing four new LNG trains in Qatar, which are the biggest around the globe.
Furthermore, Exxon Mobil is presently working on the improvement of the WCC LNG project in British Columbia. This project is predicted to process 15 million metric tonnes of LNG each year for shipment to international markets.
Apart from this, the company publicized in March 2016 that it is planning to purchase a stake of approximately 20 percent in a gas project offshore Mozambique, which is good news as this project might clamp plenty of gas to deliver for housing consumption in the United States for around 20 years.
More significantly, other than its focus on escalating liquefaction capacity, Exxon Mobil is also planning to decrease costs as this step will aid the company to enhance its margin profile in the long-term. Recently, Exxon Mobil signed a deal with Mitsubishi to work together on an advanced gas turbine that will decrease costs by discovering new applications for the H-100 gas turbine.
As per Cheniere Energy, the demand for LNG will double on a worldwide basis. Therefore, by shifting its attention towards technology development to decrease costs of processing LNG and using superior processes to generate more production, the company is headed in the correct direction in this market that is predicted to thrive moving onward.
Exxon Mobil was one of the companies that didn’t struggle much during the crude glut. Now that crude oil is starting to recover, I think the stock is the safest bet to profit from it.
Published on Apr 28, 2016By Yaggyaseni Mittra