Ashevillain

Oil Will Only Fall So Far

Details aside, viewed from Russia's point-of-view the author is correct about Russian concerns about American policy. If you were Putin or Medvedev and you believed that control of energy will be the source of power for the next 20 years, you would not be happy with the U.S. in Iraq, the U.S.'s relationship with Saudi Arabia, and the fact that a large fleet of naval ships sits off the coast of Iran. Those facts combined would provide even a reasonable person with a concern that America is trying to control oil--and Putin isn't reasonable.

Has Exxon Topped?

With a PE ratio well under 10, there is an implied yield of over 10% on the stock. You get your money back in 7 years at that rate. Thus, to maintain the current PE, assuming the same earnings XOM has right now, the stock has to double in 7 years. That's the minimum.