The tight supply due to OPEC production cuts, and the higher demand are driving energy prices up to their highest levels in many years. Occidental Petroleum (OXY), and Southwestern Energy(SWN) are both well-positioned for significant profits in the immediate term. Which stock is better to buy right now? Find out more. Southwestern Energy Company and Occidental Petroleum Corporation are both prominent names in the oil-and gas industry. OXY works internationally in the acquisition, exploration and development oil and natural gas properties. The company operates through three segments ─ Oil and Gas; Chemical; and Marketing and Midstream. Additionally, it trades and invests within similar businesses. SWN, on the other hand, engages in exploration, development and production of oil and natural gas liquids. It focuses its efforts on unconventional natural gas development and the creation of oil reservoirs. The company serves utilities and industrial buyers of natural gas.

After the return to economic and industrial activity earlier this year, there was a tremendous increase in oil and natural gas demand. Despite OPEC’s and allies remaining firm in their commitment to continuing production cuts to compensate oversupply problems and recover pre-pandemic demand worldwide, the strong demand, tight inventories as well as inflationary pressures made it possible for oil and natural gases prices to reach multi-year records.

Analysts expect prices to reach $100/barrel for 2022. Investor rising optimism in the energy industry is evident from the Energy Select Sector SPDR ETF’s (XLE (NYSE:)) 43.9% gains year-to-date, surpassing SPDR S&P 500 Trust ETF’s (SPY) 23.9% returns. Global oil and gas downstream activities are expected to expand at a 6.6% annual rate and grow to $4.24 Billion by 2025. Both OXY as well as SWN will be able to reap the benefits.

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