S&P 500   4,191.98
DOW   33,426.63
QQQ   336.51
Mount Etna volcano erupts, raining ash on Catania, forcing flight suspension at local airport
This MMJ Stock Needs To Be At The Top Of Your Radar! (Ad)
China tells tech manufacturers to stop using Micron chips, stepping up feud with United States
Stock market today: Asian shares mostly rise despite worries about US debt talks
This MMJ Stock Needs To Be At The Top Of Your Radar! (Ad)
SpaceX launches two Saudi astronauts on private flight to space station
Civil rights groups warn tourists about Florida in wake of 'hostile' laws
Central Bank: “Final stage” beginning now (Ad)
South Korean, German leaders agree to cooperate on supply chains, North Korea
Animal rights activists protest octopus farm plans in Spain
S&P 500   4,191.98
DOW   33,426.63
QQQ   336.51
Mount Etna volcano erupts, raining ash on Catania, forcing flight suspension at local airport
This MMJ Stock Needs To Be At The Top Of Your Radar! (Ad)
China tells tech manufacturers to stop using Micron chips, stepping up feud with United States
Stock market today: Asian shares mostly rise despite worries about US debt talks
This MMJ Stock Needs To Be At The Top Of Your Radar! (Ad)
SpaceX launches two Saudi astronauts on private flight to space station
Civil rights groups warn tourists about Florida in wake of 'hostile' laws
Central Bank: “Final stage” beginning now (Ad)
South Korean, German leaders agree to cooperate on supply chains, North Korea
Animal rights activists protest octopus farm plans in Spain
S&P 500   4,191.98
DOW   33,426.63
QQQ   336.51
Mount Etna volcano erupts, raining ash on Catania, forcing flight suspension at local airport
This MMJ Stock Needs To Be At The Top Of Your Radar! (Ad)
China tells tech manufacturers to stop using Micron chips, stepping up feud with United States
Stock market today: Asian shares mostly rise despite worries about US debt talks
This MMJ Stock Needs To Be At The Top Of Your Radar! (Ad)
SpaceX launches two Saudi astronauts on private flight to space station
Civil rights groups warn tourists about Florida in wake of 'hostile' laws
Central Bank: “Final stage” beginning now (Ad)
South Korean, German leaders agree to cooperate on supply chains, North Korea
Animal rights activists protest octopus farm plans in Spain
S&P 500   4,191.98
DOW   33,426.63
QQQ   336.51
Mount Etna volcano erupts, raining ash on Catania, forcing flight suspension at local airport
This MMJ Stock Needs To Be At The Top Of Your Radar! (Ad)
China tells tech manufacturers to stop using Micron chips, stepping up feud with United States
Stock market today: Asian shares mostly rise despite worries about US debt talks
This MMJ Stock Needs To Be At The Top Of Your Radar! (Ad)
SpaceX launches two Saudi astronauts on private flight to space station
Civil rights groups warn tourists about Florida in wake of 'hostile' laws
Central Bank: “Final stage” beginning now (Ad)
South Korean, German leaders agree to cooperate on supply chains, North Korea
Animal rights activists protest octopus farm plans in Spain

Oil and Gas Stocks

An oil and gas stock is public company involved in the exploration, drilling, and refinement of oil and natural gas. What is an oil and gas stock?

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CompanyCurrent PricePE RatioMarket CapVolumeAverage VolumeIndicator(s)
Exxon Mobil Co. stock logo
XOM
Exxon Mobil
$106.26
+0.5%
7.19$429.61 billion13.36 million16.38 millionAnalyst Report
Chevron Co. stock logo
CVX
Chevron
$155.23
+0.8%
8.38$294.10 billion8.10 million8.16 millionAnalyst Report
Shell plc stock logo
SHEL
Shell
$60.42
+0.6%
5.01$210.59 billion3.62 million4.31 million
TotalEnergies SE stock logo
TTE
TotalEnergies
$60.43
+0.7%
7.38$149.98 billion1.04 million1.63 million
ConocoPhillips stock logo
COP
ConocoPhillips
$102.60
+1.8%
8.21$124.15 billion6.07 million6.42 millionAnalyst Report
Caterpillar Inc. stock logo
CAT
Caterpillar
$214.78
+0.0%
15.87$110.69 billion4.40 million3.27 millionGap Up
BP p.l.c. stock logo
BP
BP
$36.03
+0.2%
4.32$105.96 billion8.65 million9.44 millionAnalyst Revision
BHP Group Limited stock logo
BHP
BHP Group
$58.53
+0.1%
N/A$86.34 billion1.75 million3.04 millionAnalyst Downgrade
News Coverage
Petróleo Brasileiro S.A. - Petrobras stock logo
PBR
Petróleo Brasileiro S.A. - Petrobras
$11.71
2.17$76.37 billion15.29 million22.80 million
Enbridge Inc. stock logo
ENB
Enbridge
$37.09
+0.1%
41.67$75.10 billion2.76 million3.45 millionAnalyst Revision
EOG Resources, Inc. stock logo
EOG
EOG Resources
$114.59
+2.3%
7.17$67.02 billion4.66 million3.63 millionAnalyst Upgrade
Gap Up
Schlumberger Limited stock logo
SLB
Schlumberger
$45.27
+0.9%
16.83$64.29 billion8.36 million9.64 million
Canadian Natural Resources Limited stock logo
CNQ
Canadian Natural Resources
$57.04
+1.7%
8.83$62.54 billion1.95 million2.10 million
O'Reilly Automotive, Inc. stock logo
ORLY
O'Reilly Automotive
$954.30
+1.3%
27.58$58.10 billion492,300430,023
Enterprise Products Partners L.P. stock logo
EPD
Enterprise Products Partners
$26.20
+0.5%
10.32$56.97 billion3.52 million4.60 millionAnalyst Revision
Occidental Petroleum Co. stock logo
OXY
Occidental Petroleum
$59.13
+1.5%
6.77$52.73 billion16.02 million12.82 millionAnalyst Report
Options Volume
Pioneer Natural Resources stock logo
PXD
Pioneer Natural Resources
$208.94
+2.4%
7.41$48.84 billion2.06 million2.45 million
Marathon Petroleum Co. stock logo
MPC
Marathon Petroleum
$110.31
-0.6%
3.32$46.80 billion2.33 million3.97 millionAnalyst Report
Phillips 66 stock logo
PSX
Phillips 66
$94.94
-1.4%
3.67$43.56 billion3.21 million3.47 millionEx-Dividend
Analyst Report
TC Energy Co. stock logo
TRP
TC Energy
$40.26
+0.5%
32.21$41.45 billion1.53 million1.89 millionAnalyst Revision
Positive News
Hess Co. stock logo
HES
Hess
$133.55
+0.3%
19.13$41.01 billion1.57 million1.72 millionDividend Cut
Analyst Report
Energy Transfer LP stock logo
ET
Energy Transfer
$12.76
+0.3%
9.52$40.08 billion6.28 million12.10 millionPositive News
Suncor Energy Inc. stock logo
SU
Suncor Energy
$28.73
+0.8%
6.36$37.70 billion4.61 million4.62 millionPositive News
Kinder Morgan, Inc. stock logo
KMI
Kinder Morgan
$16.52
14.62$37.02 billion9.83 million12.71 millionAnalyst Revision
Positive News
The Williams Companies, Inc. stock logo
WMB
Williams Companies
$29.24
+0.1%
13.73$35.62 billion5.16 million6.88 millionAnalyst Revision
Devon Energy Co. stock logo
DVN
Devon Energy
$49.20
+1.9%
5.37$32.18 billion8.29 million9.47 millionAnalyst Report
Cenovus Energy Inc. stock logo
CVE
Cenovus Energy
$16.51
+0.5%
7.94$31.46 billion6.20 million7.61 million
Cummins Inc. stock logo
CMI
Cummins
$216.68
+0.9%
12.21$30.67 billion788,2001.00 millionAnalyst Revision
LyondellBasell Industries stock logo
LYB
LyondellBasell Industries
$90.89
+0.9%
9.84$29.56 billion1.65 million2.00 millionDividend Increase
Imperial Oil Limited stock logo
IMO
Imperial Oil
$46.86
+0.7%
5.20$27.37 billion370,300444,449
Halliburton stock logo
HAL
Halliburton
$30.17
+1.0%
13.97$27.22 billion9.64 million9.43 millionDividend Announcement
Quanta Services, Inc. stock logo
PWR
Quanta Services
$171.71
-0.1%
50.65$24.93 billion657,900776,602Analyst Revision
Albemarle Co. stock logo
ALB
Albemarle
$204.15
-2.9%
6.55$23.95 billion1.58 million2.03 million
Diamondback Energy, Inc. stock logo
FANG
Diamondback Energy
$130.22
+1.1%
5.39$23.58 billion1.49 million2.25 millionAnalyst Report
Analyst Revision
Woodside Energy Group Ltd stock logo
WDS
Woodside Energy Group
$22.80
+0.8%
N/A$22.43 billion345,100630,511Positive News
Coterra Energy Inc. stock logo
CTRA
Coterra Energy
$25.63
+0.7%
4.89$19.41 billion7.69 million8.49 millionAnalyst Report
Ecopetrol S.A. stock logo
EC
Ecopetrol
$9.39
+0.8%
2.43$19.30 billion1.44 million2.32 million
Pembina Pipeline Co. stock logo
PBA
Pembina Pipeline
$31.12
+0.4%
8.28$17.13 billion584,900681,110
Targa Resources Corp. stock logo
TRGP
Targa Resources
$70.22
+0.8%
18.19$15.87 billion1.44 million1.61 millionAnalyst Report
Analyst Revision
Tenaris S.A. stock logo
TS
Tenaris
$26.83
+0.5%
4.98$15.84 billion2.81 million2.32 million
Marathon Oil Co. stock logo
MRO
Marathon Oil
$23.07
+0.1%
5.67$14.25 billion10.58 million10.57 millionAnalyst Report
Watsco Inc stock logo
WSO.B
Watsco
$340.59
-1.3%
22.20$13.27 billion200214
Graco Inc. stock logo
GGG
Graco
$78.05
-0.5%
27.48$13.14 billion386,900925,544Analyst Revision
Watsco, Inc. stock logo
WSO
Watsco
$336.56
-1.1%
21.94$13.11 billion291,100308,692Positive News
Magellan Midstream Partners, L.P. stock logo
MMP
Magellan Midstream Partners
$62.64
0.0%
11.37$12.66 billion1.86 million1.08 millionAnalyst Downgrade
Analyst Revision
Stanley Black & Decker, Inc. stock logo
SWK
Stanley Black & Decker
$81.61
-1.8%
18.26$12.50 billion1.25 million1.79 million
Chesapeake Energy Co. stock logo
CHK
Chesapeake Energy
$81.22
-1.2%
1.69$10.87 billion1.52 million1.56 millionAnalyst Revision
Positive News
Texas Pacific Land Co. stock logo
TPL
Texas Pacific Land
$1,346.02
-0.4%
23.88$10.35 billion38,20042,907Positive News
Western Midstream Partners, LP stock logo
WES
Western Midstream Partners
$26.81
+0.8%
9.68$10.31 billion780,800925,305Analyst Revision
APA Co. stock logo
APA
APA
$33.41
+2.1%
5.43$10.31 billion6.77 million5.99 millionAnalyst Report
Analyst Revision
Plains All American Pipeline, L.P. stock logo
PAA
Plains All American Pipeline
$13.49
8.88$9.42 billion2.34 million4.17 million
MasTec, Inc. stock logo
MTZ
MasTec
$96.85
-2.0%
N/A$7.64 billion1.16 million612,345
Clean Harbors, Inc. stock logo
CLH
Clean Harbors
$138.65
-1.0%
17.20$7.50 billion184,100380,069
OGE Energy Corp. stock logo
OGE
OGE Energy
$36.12
-1.3%
17.12$7.23 billion1.35 million1.12 millionDividend Cut
Positive News
Range Resources Co. stock logo
RRC
Range Resources
$29.33
-0.5%
3.44$7.08 billion8.39 million4.78 millionAnalyst Upgrade
Gap Up
ITT Inc. stock logo
ITT
ITT
$82.11
-0.4%
17.43$6.77 billion319,900469,686Positive News
RBC Bearings Incorporated stock logo
ROLL
RBC Bearings
$212.38
-3.7%
103.10$6.14 billion211,900155,583
TechnipFMC plc stock logo
FTI
TechnipFMC
$13.88
+2.7%
N/A$6.13 billion6.96 million5.57 million
MDU Resources Group, Inc. stock logo
MDU
MDU Resources Group
$29.32
+1.1%
15.93$5.97 billion1.06 million922,349
NOV Inc. stock logo
NOV
NOV
$15.11
-0.5%
17.99$5.95 billion3.45 million4.35 millionDividend Announcement
Southwestern Energy stock logo
SWN
Southwestern Energy
$5.36
-1.1%
0.92$5.90 billion29.42 million24.45 millionAnalyst Revision
Positive News
PDC Energy, Inc. stock logo
PDCE
PDC Energy
$65.12
+0.2%
2.77$5.70 billion566,600815,371
Murphy Oil Co. stock logo
MUR
Murphy Oil
$35.08
-1.0%
4.35$5.48 billion1.73 million1.73 millionAnalyst Report
Matador Resources stock logo
MTDR
Matador Resources
$45.34
+1.5%
4.65$5.40 billion1.04 million1.30 million
Permian Resources Co. stock logo
PR
Permian Resources
$9.61
+3.4%
5.14$5.38 billion8.24 million7.18 million
ChampionX Co. stock logo
CHX
ChampionX
$27.16
-1.9%
30.86$5.38 billion1.34 million1.56 million
PBF Energy Inc. stock logo
PBF
PBF Energy
$36.97
-2.2%
1.43$4.66 billion3.01 million2.94 millionAnalyst Downgrade
EnLink Midstream, LLC stock logo
ENLC
EnLink Midstream
$9.88
-0.1%
12.51$4.60 billion2.02 million2.34 millionAnalyst Revision
Denbury Inc. stock logo
DEN
Denbury
$91.07
-0.9%
8.64$4.58 billion582,000604,280Analyst Revision
Kinetik Holdings Inc. stock logo
KNTK
Kinetik
$31.80
+0.8%
24.65$4.55 billion129,500247,084Analyst Revision
Positive News
Transocean Ltd. stock logo
RIG
Transocean
$5.93
+2.2%
N/A$4.55 billion12.51 million14.08 million
Viper Energy Partners LP stock logo
VNOM
Viper Energy Partners
$27.17
+0.3%
12.02$4.44 billion242,100401,804
Driven Brands Holdings Inc. stock logo
DRVN
Driven Brands
$26.38
-2.6%
119.91$4.42 billion861,600512,049
Valaris Limited stock logo
VAL
Valaris
$58.04
-0.2%
16.82$4.36 billion591,7001.02 million
Weatherford International plc stock logo
WFRD
Weatherford International
$60.14
+2.5%
24.75$4.33 billion487,000744,249Insider Selling
Positive News
YPF Sociedad Anónima stock logo
YPF
YPF Sociedad Anónima
$10.81
-0.6%
1.87$4.25 billion1.23 million2.47 million
Magnolia Oil & Gas Co. stock logo
MGY
Magnolia Oil & Gas
$19.90
+1.3%
4.62$4.22 billion1.57 million1.92 millionAnalyst Report
Analyst Revision
Fluor Co. stock logo
FLR
Fluor
$27.78
-2.2%
N/A$3.98 billion1.34 million1.65 million
Crescent Point Energy Corp. stock logo
CPG
Crescent Point Energy
$6.75
+0.4%
9.51$3.66 billion1.81 million5.46 million
Black Stone Minerals, L.P. stock logo
BSM
Black Stone Minerals
$16.40
+0.1%
5.94$3.44 billion912,800700,856
Euronav NV stock logo
EURN
Euronav
$16.77
+3.7%
8.02$3.38 billion1.02 million2.01 million
Frontline plc stock logo
FRO
Frontline
$14.78
+2.0%
6.87$3.29 billion2.73 million3.56 millionUpcoming Earnings
Positive News
Gap Up
Enerplus Co. stock logo
ERF
Enerplus
$14.75
+1.7%
3.41$3.16 billion1.39 million1.14 million
ProFrac Holding Corp. stock logo
PFHC
ProFrac
$22.08
+0.8%
N/A$3.14 billion319,200431,097Gap Up
Moog Inc stock logo
MOG.B
Moog
$96.00
+6.3%
18.22$3.06 billion200400Gap Up
Kosmos Energy Ltd. stock logo
KOS
Kosmos Energy
$6.34
+1.0%
9.75$2.92 billion3.41 million5.99 millionPositive News
Worthington Industries, Inc. stock logo
WOR
Worthington Industries
$57.65
+0.2%
13.79$2.87 billion117,700169,227Gap Up
Comstock Resources, Inc. stock logo
CRK
Comstock Resources
$10.32
-2.1%
2.06$2.86 billion4.54 million4.76 millionAnalyst Report
Gap Up
C3.ai, Inc. stock logo
AI
C3.ai
$25.28
-5.7%
N/A$2.84 billion19.63 million20.57 million
California Resources Co. stock logo
CRC
California Resources
$39.24
-1.3%
2.97$2.77 billion546,300729,314Analyst Report
Plains GP Holdings, L.P. stock logo
PAGP
Plains GP
$14.06
+0.1%
12.78$2.73 billion3.70 million2.76 millionPositive News
Northern Oil and Gas, Inc. stock logo
NOG
Northern Oil and Gas
$31.18
+0.7%
2.06$2.66 billion1.49 million1.69 million
CNX Resources Co. stock logo
CNX
CNX Resources
$15.92
-0.6%
2.22$2.64 billion2.94 million3.15 millionAnalyst Report
Innospec Inc. stock logo
IOSP
Innospec
$98.70
-0.1%
19.02$2.45 billion84,20092,242Ex-Dividend
Alliance Resource Partners, L.P. stock logo
ARLP
Alliance Resource Partners
$18.78
+0.7%
3.38$2.39 billion318,700514,081
TORM plc stock logo
TRMD
TORM
$28.39
+3.5%
3.35$2.31 billion542,300399,593
Liberty Energy Inc. stock logo
LBRT
Liberty Energy
$12.90
+1.3%
4.23$2.26 billion3.29 million2.99 millionPositive News
Gap Up
Patterson-UTI Energy, Inc. stock logo
PTEN
Patterson-UTI Energy
$10.66
-2.8%
8.20$2.22 billion2.60 million3.48 millionAnalyst Report
Delek Logistics Partners, LP stock logo
DKL
Delek Logistics Partners
$48.83
+4.0%
13.53$2.13 billion40,50034,627
Biglari Holdings Inc stock logo
BH.A
Biglari
$919.86
+0.3%
7.67$2.10 billion100160
Oil Stocks

Every investor should have some exposure to oil for the simple reason that it powers the world. The global economy uses oil in many different ways including the gasoline that powers our cars, diesel fuel that’s essential in the trucking industry, jet fuel required for air travel. Oil is also necessary to heat and cool our homes as well as to power factories.

That’s not a complete list by any measure. And that’s the point. Oil and its derivate products (e.g. gasoline) are still essential to the global economy.

This statement remains true even as renewable energy sources are becoming cost competitive with oil. The simple fact is that the world will still be using oil for the near future.

And that means that oil stocks belong in your portfolio. Oil stocks contain less risk than trying to buy and sell oil on the options or futures markets. And most oil stocks pay a dividend which gives investors a predictable income stream that can make up for the volatility that is inherent in these stocks.

In this article, we’ll review why you should consider investing in oil; we’ll review your investment options, and more directly the different types of oil companies that you can invest in.  

Oil is a commodity and like all commodities, its price is fundamentally driven by supply and demand. Simply put when demand for crude oil is high, prices go up. Conversely when demand decreases, so do prices.

For decades, particularly since World War II, demand for oil was high. Many nations were building a new infrastructure of roads and bridges. Air travel was making the world smaller and businesses became truly international. And powering all of it was oil.

However, even during periods of strong growth, the price of oil is affected by seasonal events. As any driver will tell you, the price of gasoline goes up in the summer months because the amount of driving increases.

And the price of oil is also affected by macroeconomic events. For example, when the Covid-19 pandemic caused millions of offices and businesses to close, it had a devastating effect on the oil and gas sector. In fact, at one point, the futures contract for a barrel of oil turned negative.

Understanding how oil supply and demand impacts oil makes it a reliable indicator of economic activity. When analysts and institutional investors forecast decreasing demand for oil, they bid down the price of crude oil. This in turn affects oil stocks which as we said tend to move with the market.

And as we mentioned in the introduction, despite the continuing growth of alternative energy sources, oil will remain a worthwhile investment. And oil stocks can be a way for risk-averse investors to have exposure to the oil sector without dabbling in the commodities market.

Oil is expensive to bring to market. It’s more than just the cost of extracting it from the ground. Oil has to be transported, stored, and in many cases refined into gasoline or other products. And those costs are usually fixed.

This is a double-edged sword for the oil companies. When a barrel of oil sells for more than the sum of all these costs, oil companies turn a profit. And stocks of oil companies will go up as well.

However, the opposite is also true. When oil sells for less than, many of these companies will lose money. During these times, stocks of oil companies will go down.

Investing in oil stocks would be easier if all oil companies were affected the same way by rising or falling crude prices. But, in fact, the oil sector is very diverse and each sector may be affected slightly differently by rising or falling oil prices.

Here is a brief description of different kinds of oil companies and their role in the production of oil:

  • Upstream companies – These are the companies investors most frequently think about as an oil stock. These companies are involved in exploration and production. As the name implies, this means these companies explore locations looking for oil. When they find a promising location, they drill wells to extract the oil. However as you might imagine, these companies are affected most by changes in the price of crude oil. The largest upstream company in the United States is ConocoPhillips (NYSE:COP).

  • Midstream companies – These companies transport crude oil through pipelines that is then stored in terminals that they own. The oil stays there until it is sent to be refined or exported. Some of these companies will even transport the newly refined company through its own pipeline networks. Midstream companies are slightly more insulated from oil price fluctuations because they usually operate on long-term contracts with fixed terms. One of the leading midstream companies is Enterprise Products Partners (NYSE: EPD). A unique aspect of EPD stock is that the company is a master limited partnership. This has tax advantages for individual shareholders but can increase the risk of larger losses.

  • Downstream companies – These companies refine oil into other products such as gasoline and petrochemicals. In many cases, these companies are also part of selling this refined product to consumers. Two examples of downstream companies are gas station operators and refinery operators. Although these companies are not directly affected by a drop in crude prices, their stock still tend to fall when oil prices fall. One of the major downstream companies is Phillips 66 (NYSE: PSX).

  • Integrated companies – These companies do business in more than one of the fields mentioned above. When you hear a reference to “Big Oil” companies, it is a reference to companies such as ExxonMobil (NYSE: XOM) and Chevron (NYSE: CVX) that have large upstream and downstream operations with some midstream business.

  • Oilfield services companies – Another way to invest in oil stocks is through the companies that provide equipment, operational support, and logistics to other oil companies, typically upstream companies. Oilfield services companies are hurt when oil prices fall because one of the first things upstream companies will do is cut their service costs.

Although oil stocks generally move in concert with the price of a barrel of crude, the correlation is not always exact. For example, many oil companies will talk of a “break even” point. This can allow the price of crude to fall a little while these companies can still be profitable. This makes oil stocks a slightly less risky option than trading oil in the options or futures market.

But perhaps the most important reason to own oil stocks is that many oil stocks pay a dividend. For example, prior to the pandemic some oil companies had increased their dividends for decades. These companies know that preserving its dividends has to be a priority because of the volatility associated with the underlying price of oil.

However, it’s important that you focus less on a company’s dividend yield (which can move up or down with the share price), but also on how the yield compares to the company’s free cash flow (FCF). In general investors want to find companies that can pay their entire dividend obligation out of its FCF. This “payout ratio” should be at least 1.1.

ETFs Are a Different Way to Invest in Oil Stocks

The easiest and more popular way to invest in oil stocks is to buy stocks of individual companies. However, investing in an exchange-traded funds (ETFs) can be a smart way to manage the risk of this sector. An oil ETF allows investors to invest in one or more of the sectors listed above at one time. For example, the SPDR Oil and Gas Exploration & Production ETF (NYSEARCA: XOP) tracks the upstream sector.

Buy-and-hold investors may be reading this thinking. Yes, buying oil stocks may be good today, but what about 20 years from now? However, oil companies have been asking themselves that same question for the better part of 30 years. And that’s why some of the largest oil companies continue to make significant investments in renewable energy.

  • ExxonMobil (NYSE: XOM) is investing up to $1 billion per year to conduct research in low-carbon technologies. This may not have a payoff for decades.

  • Chevron (NYSE: CVX) has small investments in wind, solar, and geothermal projects that could potentially power over 110,000 U.S. homes. The company is also a leader in renewable diesel and liquefied natural gas.

  • P. (NYSE: BP) was a pioneer in this area in the early 1990s and currently owns 1.4 gigawatts (GW) of American wind power and solar leader Lightsource BP. The company is also part of a 50-50 joint venture with DuPont (NYSE: DD) in next-generation renewable fuels.

Not surprisingly many of these companies are also among the best performing oil stocks with regard to total return (i.e. share price growth combined with dividends).

Although they remain highly cyclical in nature, oil stocks are still an attractive investment opportunity. The fortunes of oil companies depend to a greater or lesser extent on the price of crude oil. That’s why investors should understand what role a company plays in the production and/or delivery of oil to the market.

However, the benefit of having multiple options is that investors have many options including buying shares of ETFs that add even more diversity. And because oil and gas companies are taking an increased interest in renewable energy many of the most profitable oil stocks today will continue to be good investments in the future.



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