Energy Transfer vs. Occidental Petroleum: The Better Energy Buy for the Second Half of 2026
One company produces oil; the other moves it. Which is the better choice as oil prices start to rise again?
Overview
Occidental Petroleum (NYSE: OXY) and Energy Transfer (NYSE: ET) are both energy companies. Either one would give you exposure to the sector, but their businesses are dramatically different. The geopolitical conflict in the Middle East has once again highlighted the world's reliance on oil and natural gas. However, it has also highlighted the importance of understanding how the energy stocks you own make money.
The geopolitical conflict in the Middle East has upended the normal flow of oil and natural gas. The Strait of Hormuz, a key transit chokepoint, has effectively been shut down. It is estimated that around 20% of the world's oil and natural gas flows through the strait, so supply is severely constrained right now. Since oil and natural gas are commodities driven by supply and demand, reduced supply has led to rising prices.
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Originally published at www.fool.com.