Why Marathon (NYSE:MRO), Hess (NYSE:HES), Occidental Petroleum (NYSE:OXY) Struggling in Strong Energy Environment

Some have been wondering why energy companies like Marathon (NYSE:MRO), Hess (NYSE:HES), Occidental Petroleum (NYSE:OXY) and ConocoPhilips (NYSE:COP) are struggling in an otherwise strong energy market.

The answer is simple: Exposure to Libya.

UBS (NYSE:UBS) says that Marathon Oil has about 12% of overall production coming out of Libya, Hess 6%, ConocoPhillips 3% and Occidental Petroleum 2%.

Even though UBS attempted to sooth the situation, noting that approximately 90 percent of Libyan oil revenue is taken through taxation and royalties, making the impact not as strong as thought.

That didn't impress investors though, who punished the companies because of the Libyan exposure they have.

It's possible that will keep the share prices of the companies under pressure until more clarity and stability emerges.