Exxon Mobil Corporation (XOM), Chevron Corporation (CVX): Hindsight Is 20/20

While $41 billion is certainly a huge sum of money, a juggernaut like ExxonMobil has the financial resources to endure, even if it did overpay for XTO Energy. And, the trend toward natural gas in America means that prices likely won’t stay at such low levels for long. Sooner or later, as demand keeps rising, prices should follow suit.

Meanwhile, Chevron Corporation (NYSE:CVX)’s focus on developing natural gas outside the United States means it’s being spared some of the pain. For investors not willing to wait for the domestic natural gas turnaround, Chevron looks like a better near-term bet. But, the long-term vision of U.S. natural gas remains sound, in my opinion, and ExxonMobil should provide strong results for years to come.

The article Will These Oil Majors Regret Investing in Natural Gas? originally appeared on Fool.com and is written by Robert Ciura.

Robert Ciura has no position in any stocks mentioned. The Motley Fool recommends Chevron.

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