The global oil and gas demand is recovering after falling steeply due to the pandemic. However, the recovery is slow and uneven. With the vaccine rollout, the demand for liquid fuels should rise. Still, it may not rise to the pre-pandemic levels of 2019, according to the U.S. Energy Information Administration.
Similarly, natural gas demand from the power sector — the largest natural gas consumer — is expected to fall this year due to higher gas prices and increasing generation from renewables. With the slow and uncertain pace of oil and gas demand recovery, it makes sense to stick to the best of breed stocks in the energy sector. Here are three such stocks that offer attractive and sustainable dividend yields while you wait for the sector to recover.
Oil giant Chevron (NYSE: CVX) easily stands out among its peers for its strong balance sheet, which gives it a clear edge when the energy market environment is challenging.