Additionally, big oil still believes it has a place in the global economy even as more countries push into electric vehicles (EV) in efforts to trim pollution.
“This vector is diversification, as it’s becoming increasingly clear that even if Exxon doesn’t feel threatened by electric cars, they may have another threat to consider,” according to OilPrice. “There is also climate change legislation, which, if implemented without delays, will seriously undercut the demand for fuels that constitutes Big Oil’s main revenue stream.”
Dow components Exxon and Chevron, the two largest U.S. oil companies, combine for about 40% of cap-weighted energy ETFs, such as XLE, the Vanguard Energy ETF (NYSEArca: VDE), iShares U.S. Energy ETF (NYSEArca: IYE) and the Fidelity MSCI Energy Index ETF (NYSEArca: FENY).
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