Jim Cramer: Fossil Fuels Are on the Way Out
Jim Cramer broke down his latest thoughts on oil and the banks in his Real Money column on Tuesday.
I am close to saying [the banks] are simply unownable.
But I have reserved that label for the oils, the nat gases and the pipelines.
Hardly a day goes by without someone calling on the Lightning Round asking about an oil company that looks cheap. But I think we are entering a new era where they can't catch a break no matter what. Under President Trump there's no place they can't drill and they are going to overproduce. Under a President Biden I bet we will return to a regime where the rules are strict and the costs go up. In the meantime demand is down, and only the cartel keeps them from going dramatically lower because we can't seem to stop producing. In this world we have an amazing thing happening that we don't talk nearly enough about: Exxon Mobil (XOM) . When I got to Goldman Sachs (GS) in 1982 I was told that the one stock you could always recommend to people was Exxon Mobil because we will always need oil and the company has a 50-year vision that will assure that it always has good production with low costs and a sturdy balance sheet.
Read more from Cramer over on Real Money.