Long on Chevron or Exxon Mobil?

On 8/17/06 Hilary Kramer (the other Cramer) from AOL published an article comparing Chevron (CVX) with Exxon Mobil (XOM). Her conclusion was that Chevron’s future growth potential was better than Exxon Mobil’s due to the massive size of Exxon Mobil.

We like CVX and agree that high oil prices should continue to generate above normal earnings for Chevron.

However we note down two points:

1) CVX has higher exposure to several risky areas in the world. Venezuela is becoming a serious problem.

2) Exxon Mobil (XOM) on the whole or as a percentage of its business, has less exposure to high risk areas. This is undisputed unless you view Qatar and Canada as high risk locations, we do not.

seekingalpha