Gotrade News - The US government is set to hold an emergency meeting with major oil company executives on Thursday to push for increased domestic production. The move comes nearly seven weeks into the Iran conflict, which has disrupted shipping through the Strait of Hormuz and sent energy markets into turmoil.
Key Takeaways:
- US Energy and Interior Secretaries will meet oil executives to urge more aggressive drilling
- Occidental Petroleum saw its momentum score surge from 31 to 92.5 in a single week
- Chevron and ExxonMobil remain defensive picks with 39+ years of consecutive dividend increases
Energy Secretary Chris Wright and Interior Secretary Doug Burgum are scheduled to meet executives from Occidental Petroleum and other major producers. The primary goal is to encourage increased drilling to bring down oil prices that have spiked due to Hormuz shipping disruptions.
President Trump accused Iran of failing to meet ceasefire expectations regarding oil transit and warned about shipping fees. The conflict, now nearly seven weeks old, continues to disrupt the world's most critical energy supply corridor.
Occidental Petroleum shares have seen a dramatic shift with their momentum score jumping from 31.02 to 92.51 in just one week. OXY closed at $55.83 on Wednesday, up 0.81%, with short, medium, and long-term trends all turning positive.
Chevron traded at $184.91 with a $369 billion market cap and 3.74% dividend yield. The company can sustain its dividend and capital spending even if oil drops below $50 per barrel, backed by 39 consecutive years of dividend increases.
ExxonMobil stood at $149.17 with a $621 billion market cap, making it the largest US oil producer. The company targets an additional $25 billion in earnings and $35 billion in free cash flow by 2030 compared to 2024.
Energy Transfer (ET) offers the highest distribution yield at 7.08% with infrastructure spanning over 140,000 miles of pipeline. The company's throughput capacity of 7 million barrels per day of crude oil makes it a key player in domestic energy distribution.
Hedgeye Risk Management analysts view Occidental Petroleum as "a good entry point" for investors who missed the earlier rally. With 18 of 21 analysts rating Energy Transfer as buy or strong buy, the US energy sector remains compelling amid geopolitical uncertainty.
Sources:
- Benzinga, Occidental Petroleum Momentum Triples, 2026
- Motley Fool, 3 High-Conviction Energy Stocks, 2026
