The oil industry has been one that's been talked about in great detail over the last several months. As the bottom fell out on the price of crude oil late last year, questions started to rise about how giants in the energy industry will fare. Well, Exxon has done pretty well; and while the stock is currently trading at a low for the year, I think we're going to start seeing gains. Today, we'll talk about the key factors that drive Exxon Mobil and why I think the stock is going to grow exponentially. So, let's get right to it.

Exxon's Production During The Low

The massive decline we saw in oil prices last year proved to be a major hit to all oil companies; and with Exxon being the world's largest, it's no surprise that they were not immune to the affects. However, throughout the entire time, and even to the most recent earnings report, Exxon has been able to beat earnings expectations from Wall Street. Literally, for the past 5 consecutive quarters, the company has come up ahead! This is something that many of its competitors imply couldn't do. So, how did Exxon do it?

They Have A Secret Weapon

Exxon has a secret weapon that helps them when oil prices are low. The company currently dominates the refining and chemical space that's associated with oil. While crude oil prices fell, the cost of refining crude oil and chemicals associated with oil remained relatively strong; leading to Exxon's ability to produce positivity even when profits from oil itself are hard to come by. As a result, Exxon Mobil has created a way to hedge against losses when oil prices are low.

Exxon Is Currently Trading At Lows

Fundamentally, Exxon Mobil is a solid investment. Now the question becomes "When will we see growth?" In my opinion, this is a purely technical question, and it looks like the answer is going to be incredibly profitable for Exxon Mobil. One of the first things we have to look at is where the stock is trading now. Does it have more room to move up than it has to move down? Personally, I think that the answer is "Yes". Looking at the stock chart for the company, it's easy to see that it is trading at lows for the year. As a matter of fact, thanks to declines in oil prices, Exxon Mobil is currently trading at the lowest price we've seen since June 2012; and with the oil market starting to stabilize, it doesn't look like we're going to see any further declines. However, there is plenty of room for the stock to move in the upward direction.

What We Can Expect To See Moving Forward

Moving forward, I'm expecting to see overwhelmingly positive news in both the short and long term outlooks. Here's how I see it…

• Short Term – In the short term, everything seems to be falling in line for the company. As the oil market starts to recover, Exxon's stock is reaching support. At this point, I'm expecting to see major gains from the stock over the next few weeks.
• Long Term – In the long run, the question is more fundamentally based; and when talking about Exxon Mobil, we're talking about a company that's incredibly strong fundamentally. While the company's strong production figures may not help it in times of low oil prices, the hedge from the refining and chemicals business will help to pick up the slack. Also, with strong management, and it's current dominant position, I'm expecting to see long term gains.

What Do You Think?

Where do you think Exxon Mobil is headed and why? Let us know in the comments below!