--- title: "Global Oil Demand Is Shrinking and Prices Are Still Above $90. These Are the Energy Stocks Built to Survive That Paradox." type: "News" locale: "en" url: "https://longbridge.com/en/news/287468958.md" description: "Global oil demand growth is slowing due to factors like electric vehicle adoption and geopolitical tensions, yet prices remain above $90 per barrel. Companies like Chevron and TotalEnergies are well-positioned, generating strong cash flow and maintaining solid balance sheets. Chevron's acquisition of Hess enhances its production profile, while TotalEnergies diversifies into LNG and renewables. Despite demand concerns, underinvestment in production and geopolitical risks support high oil prices, making large integrated energy companies safer long-term investments." datetime: "2026-05-24T19:25:27.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/287468958.md) - [en](https://longbridge.com/en/news/287468958.md) - [zh-HK](https://longbridge.com/zh-HK/news/287468958.md) --- # Global Oil Demand Is Shrinking and Prices Are Still Above $90. These Are the Energy Stocks Built to Survive That Paradox. ## Key Points - Oil demand growth is slowing, but supply constraints remain severe. - Chevron maintains one of the energy sector’s strongest balance sheets. - LNG demand growth could support TotalEnergies for years to come. - 10 stocks we like better than TotalEnergies Se › Global oil demand growth is slowing. The International Energy Agency has projected that global oil demand growth will decelerate as electric vehicle adoption rises, fuel efficiency improves, China's economy slows, and elevated oil prices tied to the Iran conflict trigger demand destruction across parts of the global economy. Yet despite those concerns, oil prices have remained above $90 per barrel amid geopolitical instability, underinvestment in supply, and persistent refinery constraints. That creates an unusual opportunity for oil stock investors. _**Will AI create the world's first trillionaire?** Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. **Continue »**_ Image source: Getty Images. ## Two stocks to play the paradox Oil companies are generating enormous cash flow, but some investors remain skeptical about the sector's long-term future. The result is that several large energy companies still trade at surprisingly modest valuations despite strong shareholder returns. That is particularly true for integrated oil majors such as **Chevron** (NYSE: CVX) and **TotalEnergies** (NYSE: TTE). Chevron continues to generate massive free cash flow at elevated oil prices while maintaining one of the industry's strongest balance sheets. The company also expanded its long-term production profile through its Hess acquisition, giving Chevron additional exposure to Guyana, which is one of the world's fastest-growing low-cost oil developments. To be sure, Chevron is not solely dependent on rising oil prices. The company has spent years lowering production costs, expanding LNG exposure, and improving capital efficiency, which, combined, can help Chevron remain profitable during periods of weaker oil prices. TotalEnergies may be even more diversified. Unlike a lot of traditional oil majors, TotalEnergies has aggressively expanded into liquefied natural gas, solar, wind, and electricity infrastructure while still maintaining substantial upstream oil exposure. The company now operates one of the world's largest LNG portfolios, which could become increasingly important as Europe continues to shift away from its reliance on Russian natural gas. Valuations remain relatively low, too. TotalEnergies still trades at roughly 8.4x to 8.9x forward earnings while offering a dividend yield near 4.5%. Chevron also continues to return substantial capital to shareholders through dividends and buybacks, while maintaining a dividend yield of around 3.6%. ## Surviving the paradox Even if global oil demand growth slows, years of underinvestment in upstream production have left global spare capacity relatively tight outside of OPEC. At the same time, geopolitical risks involving the Middle East, Russia, and global shipping routes continue to support elevated crude prices. That is why oil can remain above $90 even while long-term demand projections weaken. It's worth noting that the companies most likely to survive this environment are probably not smaller, highly leveraged shale producers dependent on constantly rising oil prices. The safer long-term bets may instead be large integrated energy companies capable of generating strong free cash flow across multiple commodity cycles while continuing to return capital to shareholders through dividends and buybacks. Chevron and TotalEnergies accomplish those goals. ## Should you buy stock in TotalEnergies Se right now? Before you buy stock in TotalEnergies Se, consider this: The _Motley Fool Stock Advisor_ analyst team just identified what they believe are the **10 best stocks** for investors to buy now… and TotalEnergies Se wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when **Netflix** made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, **you’d have $477,813**!\* Or when **Nvidia** made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, **you’d have $1,320,088**!\* Now, it’s worth noting _Stock Advisor’s_ total average return is 986% — a market-crushing outperformance compared to 208% for the S&P 500. **Don't miss the latest top 10 list, available with _Stock Advisor_, and join an investing community built by individual investors for individual investors.** **See the 10 stocks »** _\*Stock Advisor returns as of May 24, 2026._ _Jeff Siegel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy._ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. ### Related Stocks - [CVX.US](https://longbridge.com/en/quote/CVX.US.md) - [HES.US](https://longbridge.com/en/quote/HES.US.md) - [TTE.US](https://longbridge.com/en/quote/TTE.US.md) - [IEO.US](https://longbridge.com/en/quote/IEO.US.md) - [VDE.US](https://longbridge.com/en/quote/VDE.US.md) - [ERX.US](https://longbridge.com/en/quote/ERX.US.md) - [CRAK.US](https://longbridge.com/en/quote/CRAK.US.md) - [IXC.US](https://longbridge.com/en/quote/IXC.US.md) - [USO.US](https://longbridge.com/en/quote/USO.US.md) - [IEZ.US](https://longbridge.com/en/quote/IEZ.US.md) - [XOP.US](https://longbridge.com/en/quote/XOP.US.md) - [XLE.US](https://longbridge.com/en/quote/XLE.US.md) - [XES.US](https://longbridge.com/en/quote/XES.US.md) - [OIH.US](https://longbridge.com/en/quote/OIH.US.md) - [NFLX.US](https://longbridge.com/en/quote/NFLX.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [INTC.US](https://longbridge.com/en/quote/INTC.US.md) - [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Related News & Research - [Chevron just crushed earnings. 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