More American manufacturers are operating from the United States due to cheaper energy. Fracking has resulted in far greater supplies of oil and natural gas. The energy situation is improving so much that Exxon Mobil (NYSE: XOM) is now seeking to export oil from the United States. That is bullish for companies such as Marathon Petroleum (NYSE: MPC), Valero (NYSEL VLO), and Chesapeake Energy (NYSE: CPK).
These firms are all well situated to profit from more factories in the United States using more natural gas to power the machines at factories.M
Valero and Chesapeake Energy are both major natural gas producers. Marathon Petroleum and Exxon Mobil are moving to amp up production, too/ Valero uses 700 million cubic feet per day (mmcf/day) when it is at peak capacity. Marathon Petroleum has earnings increasing nearly 45%. Exxon Mobil and Chesapeake Energy profit from both sides, upstream and downstream.
As investors buy for the future, these stocks appear to be even more bullish opportunities.
The demand for oil and natural gas in the United States will only rise. More and more companies are choosing to operate from the United States. The lower cost of energy is the major reason, according to a recent article in The Wall Street Journal. That is due to lower priced natural gas.
That situation should only improve, as fracking technology is constantly getting better.
That will keep prices low in the United States. In addition to the cost being competitive, as detailed in other articles on this site, there is a premium being paid for oil and natural gas in North America due to the political stability and economic security. Those are all very bullish factors for Exxon Mobil, Marathon Petroleum, Valero, and Chesapeake Energy.