‘Hidden Gem’ Oil, Gas Stocks Hold Strong Amid Climate Uproar
- Energy is the best-performing sector on the S&P 500 this year
- Exxon, Shell both take emissions-related hits Wednesday
Energy-stock investors are clinging to their holdings, buoyed by rising commodity prices and profits, as the companies face historic pressure to confront climate change.
The world’s still ravenous for oil and gas, according to Rafi Tahmazian, senior portfolio manager at Canadian investment mnagement firm Canoe Financial, making the oil and gas group a “hidden gem.” Energy is the best performing sector in the S&P 500 this year, up about 36% compared with a 12% rise in the broader index. The S&P 500 Energy index rose 0.9% Wednesday, outperforming broad markets.
“You have to reduce the demand and you will kill the oil supply. Until that happens, we do not see any threat to the sector. In fact attacking the oil production just extends the upside for the sector,” Tahmazian said.