Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) has been investing $236.7 billion over five years in building refineries, developing deepwater fields, and ramping up output in deepwater fields including Lula. Petrobras produces more oil than any other company in waters deeper than 1,000 feet (305 meters) and as a result, it is building dozens of platforms and drill ships to expand output.
Exxon Mobil Corporation (NYSE:XOM) is engaged in mitigating an oil spill that dumped 200,000 gallons from the Pegasus pipeline into Mayflower, Arkansas. However, the company has sufficient proven oil and gas to produce at current levels for 16 years. In the last quarter, Exxon reported a flat profit with only its strong chemical business making up for the losses from oil exploration and production.
Honestly, TOTAL S.A. (ADR) (NYSE:TOT) has been unable to keep up with Exxon Mobil Corporation (NYSE:XOM) since 2010, but since last year, Total has been ramping up its efforts to rejoin the big boys of the oil and gas sector. The company has achieved a strong production base in Africa, and for the next three years, it is striving to capitalize in the Middle East as well by building a $1.5 billion condensate refinery in Qatar.
Total is surely a buy for the long-term, while dismal performance of Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) is a clear sigh of the company’s struggles and efforts. While Exxon has undeniable potential, when compared to TOTAL S.A. (ADR) (NYSE:TOT), I believe the French company holds the upper hand.
Marina Avilkina has no position in any stocks mentioned. The Motley Fool recommends Petroleo Brasileiro S.A. (ADR) and Total SA. (ADR).
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