Written by Miranda Marquit
Big Oil show no signs of going away, as it dominates the Fortune Global 500 list.
Even though Exxon (XOM) lost its throne to Wal-Mart as the world's largest company, it is still number two. And the rest of Big Oil appears to be doing just fine as second quarter earnings roll in and Fortune puts together its Global 500 list. Big Oil continues to fly high with more than adequate earnings, and this means that these stocks are likely to remain staples of energy portfolios for quite some time. CNN Money reports on how Big Oil continues to dominate earnings:
"Just a few years ago Fortune was predicting that high-flying tech companies would soon displace the oil and auto giants that had been hogging the limelight at the top of the Global 500," Fortune reporter Telis Demos wrote in the July 23 issue of the magazine.
"Well, look who's still riding high: Six of the top 10 companies on this year's list are pumping petroleum, and three more are making vehicles that burn it," according to Demos. "True, Wal-Mart regained its title as the world's largest company, at $351.1 billion in revenue. ... But the big story was oil."
And with some predicting that a green blacklash will soon end the current love affair with alternative energy investing, that means more dollars for Big Oil to pick up in the future.
If you're looking for up-and-coming Big Oil players, you might consider Sinopec (SHI). The Chinese oil company busted into Fortune's Global 500 list's top 20 this year, and with demand for oil set to explode in developing Asian economies (especially China and India), it looks as though Sinopec may be well placed for the future. Disclosure: I do not own XOM or SHI.