Benzinga - by Chris Katje, Benzinga Staff Writer.
The oil and gas industry wasn't expected to benefit from a Joe Biden presidency. After all, he publicly voiced opposition to pipelines.
But ever since Biden won the 2020 election, the sector enjoyed an impressive gain.
What Happened: The oil sector saw several catalysts during Biden's current presidency, including wars in Ukraine and the Middle East, which led to higher costs per barrel of oil and increased gas prices at pumps around the U.S.
In recent weeks, it was announced that U.S. oil production hit record levels in 2023, which might lead to cheaper oil and gas ahead.
The recently held COP28 Climate Summit also saw discussions and an agreement to transition away from fossil fuels, something that could impact oil stocks in the future.
Exxon Mobil Corp (NYSE:XOM) is considered one of the best-performing large-cap stocks since Biden took office. Shares hit several all-time highs throughout 2022 and in 2023, most recently hitting $120.70 in September.
The company has been exploring lithium production as a diversification option as the demand for electric vehicles heats up.
Related Link: Energy Sector Stocks Flush With Cash Amid Oil’s Bear Market: Is There A Buy Signal In Sight?
Investing $1,000 in Exxon Mobil: Oil company Exxon Mobil opened for trading at $33.27 on Nov. 4, 2020, the day after Biden on the 2020 presidential election.
A $1,000 investment in Exxon Mobil could have purchased 30.06 shares at the time. The 30.06 shares would be worth $3,049.89 today, not including dividends, based on a current price of $101.46 at the time of writing.
This represents a return of 205% over the last three years.
For comparison, the same $1,000 invested in the SPDR S&P 500 ETF Trust (NYSE:SPY), which tracks the S&P 500 Index, would be worth $1,380.73 today. This represents a return of 38.1% over the last three years.
This means an investment in a leading oil stock easily defeated the overall stock market over the last three years, despite the concerns that Biden winning the election being bad for the oil sector.
Read Next: Revamping Rewards: Exxon Mobil Reportedly Shifts To Cash Bonuses For Select Traders
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