Back to top

Press Releases

Zacks Equity Research

The Zacks Analyst Blog Highlights: Chevron, Exxon Mobil, BP and Royal Dutch Shell

CVX XOM BP RDS.A

Trades from $3

For Immediate Release

Chicago, IL – November 17, 2016 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Chevron Corp. (NYSE: (CVX - Free Report) -Free Report ) , Exxon Mobil Corp. (NYSE: (XOM - Free Report) -Free Report ) , BP plc (NYSE: (BP - Free Report) -Free Report ) and Royal Dutch Shell plc (NYSE: (RDS.A - Free Report) -Free Report ).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Wednesday’s Analyst Blog:

Will Oil Majors Slip on Trump’s Lofty Promises?

The surprise victory of Donald Trump in the U.S presidential election might add to the woes of the already beleaguered energy sector.

The billionaire real estate developer, who never held elected office before, proposed a few changes for the oil and gas sector. According to Trump, the nation needs to augment crude production in order to reduce its dependence on imports. However, increasing crude output in an already oversupplied market would actually be a recipe for disaster.

Trump’s Proposal for Energy Sector

The 45th President of the U.S had announced his intention to support to increase the production of oil and natural gas during his campaign. Let’s take a look at some of the other proposals tabled by Trump.

No Restrictions on Exploration and Production of Oil & Gas:

Trump had announced his plans to lift restrictions on the exploration and production of crude and natural gas, upon election, to boost production. In the U.S., activities of all energy players are strictly regulated both at federal and state levels. If an upstream energy player intends to engage in exploration and production activities, it should get a development permit, a drilling permit as well as an operating permit. This apart, the firm has to undergo a public review. Failure to comply with these regulations might result in penalties – both legal and financial – not to mention delays.

On the other hand, companies from the gas drilling industry need to abide by the Clean Air Act that targets reduction in greenhouse gas emissions while drilling. (For details please read: How does government regulation impact the oil & gas drilling sector? )

More Federal Acres for Oil & Gas Drilling:

Trump also promised to integrate more federal acres of land for oil and gas drilling operations. More land for drilling purposes will significantly improve the oil and gas production.

Support Keystone XL Pipeline Development:

Trump also proposed the extension of the Keystone XL pipeline to carry oil from Alberta, Canada to the U.S refineries. The initial phase of the pipeline project was finished in 2011. The proposed extension of the pipeline line will add another 1100 miles to the over 2100 miles it already covers.

However, the proposed extension development has not been supported by environmental groups and politicians. This is because bitumen that might be transported by the pipeline system along with crude to the U.S might emit greenhouse gas.

Impact on Oil Price

It is a well-documented fact that oil price primarily determines the fate of energy players. Since mid-2014, the energy sector has been witnessing persistent oil prices weakness due to supply glut. In such a scenario, Trump’s proposals undoubtedly raise concern as increased production will worsen the situation. This will not only impact the commodity price but will also raise environmental risks by increasing greenhouse gas emissions.

This is definitely unfavorable for most energy players. This is because lesser the price of oil, lower will be the revenues for upstream energy players after selling the commodity. The upstream businesses of oil integrated majors like Chevron Corp. (NYSE: (CVX - Free Report) -Free Report ) , Exxon Mobil Corp. (NYSE: (XOM - Free Report) -Free Report ) , BP plc (NYSE: (BP - Free Report) -Free Report ) and Royal Dutch Shell plc (NYSE: (RDS.A - Free Report) -Free Report ) are likely to be the worst hit.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .

Where Do Zacks' Investment Ideas Come From?

You are welcome to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buy" stocks free of charge. There is no better place to start your own stock search. Plus you can access the full list of must-avoid Zacks Rank #5 "Strong Sells" and other private research. See the stocks free >>

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on CVX - FREE

Get the full Report on XOM - FREE

Get the full Report on BP - FREE

Get the full Report on RDS.A - FREE

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.