Best Oil Stocks for Long-Term Gains in Energy

Investing in oil stocks can be a smart choice for those looking to benefit from the energy sector’s potential. With the ongoing shift towards renewable energy, some oil companies are adapting and investing in cleaner technologies, which could lead to long-term growth. This article highlights the best oil stocks to consider for long-term gains, focusing on their strengths and market position.

Key Takeaways

• TotalEnergies is a top choice due to its strong cash flow and commitment to renewable energy.
• Chevron offers solid dividends and has a robust market presence.
• Hess is known for its efficient operations and growth potential.
• Schlumberger stands out in oilfield services, benefiting from global demand.
• Investing in diversified energy stocks can help balance risks in your portfolio.

1. TotalEnergies

TotalEnergies is a major player in the global oil and gas industry, known for its strong financial performance. In 2023, the company reported a remarkable cash flow of $35.9 billion and a net income of $23.2 billion. This success is reflected in its impressive 20% return on equity and 19% return on average capital employed. The company produced 1.38 million barrels of oil and 1.09 million barrels of oil equivalent of natural gas daily.

Key Highlights

• Market Capitalisation: $162.10 billion
• YTD Performance: 11.16% increase
• Dividend Yield: 5%

Pros and Cons

Pros:

• Strong dividend yield of 5%.
• Plans to increase hydrocarbon production in the coming years.
• Expansion in liquefied natural gas to meet rising global demand.

Cons:

• Potential backlash from environmental investors due to increased hydrocarbon production.
• Competitive renewable energy market may limit cash flow growth.
• Exposure to geopolitical risks, particularly in Russia.

TotalEnergies is preparing for a sustainable future by investing in renewable energy, aiming for carbon neutrality by 2050.

In summary, TotalEnergies stands out as a solid choice for investors looking for long-term gains in the energy sector, balancing traditional oil production with a commitment to sustainability.

2. Chevron

Chevron is a major player in the oil and gas industry, known for its strong long-term growth prospects. The company is focusing on expanding its production capabilities, particularly in the Permian Basin, which is a key area for its future growth. Here are some important points about Chevron:

• Production Goals: Chevron aims to increase its production to nearly 4.0 million barrels of oil equivalent per day by 2027, up from about 3.0 mmboe/d in 2023.
• Investment in Low-Carbon: The company is investing $10 billion in low-carbon projects by 2028, which includes initiatives in hydrogen and renewable fuels.
• Strong Financials: Chevron has a 4.42% dividend yield, making it attractive for investors looking for steady returns.

Chevron’s stock is facing short-term challenges, but long-term growth prospects remain strong with record production and attractive valuation metrics.

In summary, Chevron is well-positioned for future growth, with a focus on both traditional oil production and emerging low-carbon technologies. Its strategic investments and production goals make it a compelling choice for long-term investors in the energy sector.

3. Hess

Hess is a notable player in the oil and gas sector, particularly in exploration and production. The company is currently undervalued by 25% compared to its estimated fair value of $180. Here are some key points about Hess:

• Morningstar Price/Fair Value: 0.75
• Morningstar Uncertainty Rating: High
• Morningstar Economic Moat Rating: Narrow
• Forward Dividend Yield: 1.48%

Key Assets and Growth Potential

Hess has streamlined its operations by focusing on more profitable assets. Its main growth drivers include:

1. US Gulf of Mexico: Strong cash flows from legacy operations.
2. Guyana: A significant 30% working interest in the Exxon-operated Stabroek block, which is expected to be a major growth engine.
3. Bakken Shale: One of the largest producers in this region, particularly near the Mountrail-McKenzie county line in North Dakota.

Hess has been improving its ability to allocate capital effectively, which is crucial for long-term success. The company plans to distribute 75% of its free cash flow to shareholders, although initial spending in Guyana may reduce cash flow temporarily.

Future Development Plans

Recent guidance indicates that Hess plans to develop six phases in Guyana by 2027, aiming for over 1.2 million barrels of oil per day. This includes:

• Two phases already sanctioned
• Two phases currently producing

With over 30 discoveries to date, the potential for further growth remains high. Hess is well-positioned to benefit from the ongoing demand for oil, especially as the energy sector continues to evolve.

4. Schlumberger

Schlumberger, often referred to as SLB, is the largest oilfield services provider globally. The company has built a strong reputation for innovation in the oilfield services sector. Approximately 20% of its annual revenue is generated from new technologies, which help well operators improve efficiency. This has allowed SLB to secure a dominant position in various service categories, including wireline services and production testing.

Key Features of Schlumberger:

• Integrated Services: SLB focuses on providing integrated services and digital solutions, which streamline project management for well operators.
• Asset Performance Solutions: This service allows clients to outsource project management, enhancing operational efficiency and reducing costs.
• Local Expertise: The company employs a “fit-for-basin” approach, tailoring solutions to meet specific regional needs.

Financial Overview:

Schlumberger’s focus on digital solutions and local expertise positions it well for future growth in the energy sector.

In summary, Schlumberger stands out as a leader in oilfield services, with a strong emphasis on innovation and efficiency. Its strategic approach to integrated services and localised solutions makes it a compelling choice for long-term investment in the energy market.

5. HF Sinclair

HF Sinclair is a prominent player in the oil and gas refining sector, known for its strong market position and impressive financial performance. With a forward dividend yield of 4.46%, it stands out as a solid investment choice for those looking for long-term gains.

Key Financial Metrics

Why HF Sinclair Stands Out

• Low net debt compared to peers
• Significant refining capacity of 678,000 barrels per day
• Strong focus on renewable diesel production

HF Sinclair has made strides in diversifying its operations, particularly through its acquisition of Sinclair Oil, which has expanded its refining and marketing capabilities.

Pros and Cons

Pros:

1. Benefits from Permian Basin production growth.
2. The acquisition of Sinclair adds a valuable marketing business.
3. Investments in renewable diesel are expected to yield high returns.

Cons:

1. Exposure to risks from the Brent/West Texas Intermediate spread.
2. The lubrication business has not met expectations.
3. Growing electric vehicle adoption may impact gasoline demand in the future.

In summary, HF Sinclair is a strong contender in the energy sector, offering a mix of stability and growth potential for long-term investors.

6. Halliburton

Halliburton is one of the largest oilfield service companies globally, known for its innovative approaches in the energy sector. The firm has a strong reputation for developing new methods to enhance value for its clients. However, it faces challenges as competition in the North American shale market intensifies, making it harder to maintain profitability.

Key Highlights:

• Market Position: Halliburton is a leading pressure pumper in North America.
• Innovation: The company introduced simultaneous fracturing, which has significantly increased the speed of well completions.
• Future Outlook: The shift towards net-zero emissions presents new opportunities, especially with the rising demand for dual-fuel and electric fleets.

Financial Overview:

Halliburton is focusing on maximising profitability and expanding into international markets, which could enhance its long-term growth potential.

Challenges Ahead:

1. Increased competition in the shale market.
2. Industry consolidation affecting drilling growth.
3. Rapid technological advancements reducing competitive edges.

In summary, while Halliburton has a solid foundation and innovative strategies, it must navigate a challenging landscape to sustain its growth and profitability.

7. EOG Resources

EOG Resources is a leading player in the oil and gas sector, known for its strong performance and solid financials. The company has consistently shown resilience in a fluctuating market, making it a favourite among investors.

Recent Performance

EOG Resources has reported impressive earnings recently. In its latest earnings report, the company achieved an EPS of $3.16, surpassing last year’s figure of $3.44. This reflects a robust operational performance despite the challenges in the industry.

Analyst Ratings

EOG Resources has received a “Buy” rating from analysts, indicating confidence in its future performance. Here are some key points:

• Strong Buy Consensus: Analysts are optimistic about EOG’s growth potential.
• Price Target: The average price target is set at $144.17, suggesting significant upside.
• Dividend Payments: EOG currently pays a dividend of $0.91, with an upcoming ex-dividend date on October 17, 2024.

EOG Resources is well-positioned for long-term growth, but what’s next for EOG Resources stock? Despite high profits and a modest valuation, EOG’s stock may continue to tread water in the short term – as it is highly dependent on commodity pricing.

In summary, EOG Resources stands out as a strong contender in the oil market, with a solid track record and promising future prospects. Investors should keep an eye on its performance as it navigates the complexities of the energy sector.

8. ConocoPhillips

ConocoPhillips is a major player in the oil industry, known for its strong buy ratings from analysts. This company has a solid reputation for its efficient operations and strategic investments in energy resources.

Key Highlights:

• Market Capitalisation: Approximately $133.22 billion.
• Current Stock Price: $111.16.
• Analyst Consensus: 13 Buy, 2 Hold, 0 Sell.

Recent Performance:

Reasons to Consider ConocoPhillips:

1. Strong Financials: The company has consistently shown robust earnings.
2. Diverse Portfolio: ConocoPhillips operates in various regions, reducing risk.
3. Commitment to Sustainability: The company is investing in cleaner energy solutions.

ConocoPhillips stands out in the oil sector due to its strategic focus on long-term growth and sustainability. Investors should keep an eye on its performance as the energy landscape evolves.

Overall, ConocoPhillips is a compelling option for those looking to invest in oil stocks with potential for long-term gains.

9. Occidental Petroleum

Occidental Petroleum, often referred to as Oxy, is a major player in the oil and gas industry. The Texas-based oil and gas company gained 9.27% over the course of the last six trading days. However, it has faced challenges this year, losing 6.13% so far.

Key Financial Metrics

Recent Performance

• 6-month change: -11.59%
• Volume: 8.22M shares traded
• Price change: -$7.33

Pros and Cons of Investing in Occidental Petroleum

Pros:

• Strong recovery potential in the coming months.
• Diversified operations across oil and gas sectors.
• Commitment to sustainable practises.

Cons:

• Vulnerable to fluctuations in oil prices.
• Recent performance has been inconsistent.
• Limited dividend payouts compared to competitors.

Investing in Occidental Petroleum can be a strategic move for those looking to capitalise on potential market recoveries. However, investors should be aware of the inherent risks in the oil sector.

10. Exxon Mobil

Exxon Mobil is one of the largest oil companies in the world, known for its strong market presence and extensive operations. The company has a market capitalisation of approximately $557 billion, making it a significant player in the energy sector.

Key Financial Metrics

Recent Performance

• 3-Month Change: +16.99%
• 6-Month Change: +9.86%
• 1-Year Change: +17.28%

Exxon Mobil continues to show resilience in the market, adapting to changes in energy demand and prices.

Investment Considerations

1. Strong Analyst Ratings: The stock has a moderate buy rating from analysts, indicating confidence in its future performance.
2. Diverse Operations: Exxon Mobil operates in various segments, including upstream, downstream, and chemical production, which helps mitigate risks.
3. Sustainable Practises: The company is increasingly focusing on sustainable energy solutions, aligning with global trends towards greener energy.

In summary, Exxon Mobil remains a solid choice for investors looking for long-term gains in the energy sector, especially given its robust financial health and strategic initiatives.

11. Targa Resources

Targa Resources is a key player in the energy sector, focusing on natural gas and natural gas liquids. The company has shown strong growth potential, making it a noteworthy option for long-term investors.

Key Highlights

• Diverse Operations: Targa operates across various segments, including gathering, processing, and transportation of natural gas.
• Strategic Growth: The company is expanding its infrastructure to meet increasing demand for natural gas.
• Financial Performance: Targa has consistently reported solid earnings, contributing to its attractiveness as an investment.

Recent Developments

• Targa has announced plans to enhance its pipeline capacity, which is expected to boost its revenue.
• The company is also investing in new technologies to improve efficiency and reduce costs.

Pros and Cons

Pros:

• Strong market position in the natural gas sector.
• Continuous investment in infrastructure.
• Positive earnings growth over the past few years.

Cons:

• Potential risks associated with fluctuating natural gas prices.
• Increased competition in the energy market.
• Regulatory challenges that could impact operations.

Targa Resources is well-positioned to benefit from the growing demand for natural gas, making it a compelling choice for investors looking for long-term gains in the energy sector.

Financial Overview

12. Oneok

Oneok is a major player in the energy sector, focusing on natural gas and natural gas liquids. The company has a strong market presence and is known for its reliable infrastructure.

Key Highlights:

• Market Cap: Approximately $25 billion
• YTD Performance: Gained around 15% this year
• Dividend Yield: Offers a competitive yield of about 6%

Recent Developments:

1. Expansion of pipeline capacity to meet rising demand.
2. Increased investments in renewable energy projects.
3. Strategic partnerships to enhance operational efficiency.

Oneok is committed to sustainable practises, aiming to reduce its carbon footprint while maintaining robust growth in the energy market.

Financial Overview:

13. Williams Companies

Williams Companies is a key player in the energy sector, focusing on natural gas processing and transportation. The company presents a compelling long-term investment case with its robust business model, strategic acquisitions, and consistent dividend growth.

Key Highlights

• Market Position: Williams is one of the largest natural gas infrastructure companies in North America.
• Dividend Growth: The company has a strong history of increasing dividends, making it attractive for income-focused investors.
• Strategic Acquisitions: Recent acquisitions have strengthened its market position and expanded its operational capabilities.

Performance Overview

Williams Companies continues to thrive in a competitive market, showcasing resilience and adaptability in its operations.

In summary, Williams Companies stands out as a solid choice for investors looking for stability and growth in the energy sector. Its focus on natural gas, combined with a strong financial foundation, makes it a noteworthy option for long-term gains.

14. Kinder Morgan

Overview

Kinder Morgan, listed on the NYSE as KMI, is a major player in the energy sector, focusing on the transportation and storage of natural gas and other energy products. The company has a significant presence in North America, making it a key player in the energy market.

Financial Health

When evaluating Kinder Morgan, it’s essential to consider its financial stability. The latest balance sheet shows that Kinder Morgan has liabilities of US$5.96 billion due within a year and US$33.1 billion due beyond that. This raises questions about its long-term financial health, especially regarding its ability to manage these debts effectively.

Key Highlights

• Strong Market Position: Kinder Morgan is one of the largest energy infrastructure companies in North America.
• Diverse Operations: The company operates pipelines and storage facilities, providing essential services to the energy sector.
• Dividend Payments: Kinder Morgan has a history of paying dividends, making it attractive for income-focused investors.

Pros and Cons

Pros:

• Extensive pipeline network across North America.
• Strong cash flow from operations.
• Commitment to returning capital to shareholders through dividends.

Cons:

• High levels of debt may pose risks.
• Vulnerable to fluctuations in energy prices.
• Regulatory challenges in the energy sector.

Kinder Morgan’s ability to navigate its financial obligations will be crucial for its future growth and stability.

15. Diamondback Energy

Diamondback Energy, Inc. (FANG) is a prominent player in the oil and gas sector, known for its strong performance and growth potential. According to 22 analysts, the average rating for FANG stock is “buy.” The 12-month stock price forecast is $213.33, indicating a potential increase of 6.93% from current levels.

Key Highlights

• Strong Analyst Ratings: The stock has a consensus rating of “buy” from multiple analysts.
• Growth Potential: The forecasted price suggests a promising upside for investors.
• Market Position: Diamondback is well-positioned in the energy market, focusing on efficient operations and strategic acquisitions.

Financial Overview

Diamondback Energy continues to attract attention due to its robust operational strategies and commitment to shareholder returns.

Investment Considerations

1. Diversification: Investing in Diamondback can help diversify an energy portfolio.
2. Dividend Potential: The company has a history of returning capital to shareholders through dividends.
3. Market Trends: As oil prices fluctuate, Diamondback’s operational efficiency may provide a buffer against market volatility.

16. Marathon Petroleum

Marathon Petroleum (MPC) is a major player in the oil refining industry, primarily operating in the Midwest, West Coast, and Gulf Coast regions of the United States. With the largest refining system in the country, Marathon also owns numerous branded gas stations and has a significant stake in MPLX, a company focused on pipeline and midstream crude oil transportation and storage.

In 2023, Marathon reported impressive financial results, including:

Pros and Cons

Pros:

• High-complexity refining facilities allow for flexibility in changing market conditions.
• Investments in renewable diesel position the company for future growth.
• Higher European natural gas prices enhance U.S. refining margins.

Cons:

• Refineries on the West Coast face higher operational costs.
• The investment in MPLX exposes Marathon to crude oil price fluctuations.
• The rise of electric vehicles may reduce gasoline demand in the long run, particularly in coastal areas.

Marathon Petroleum’s strong financial performance and strategic investments make it a noteworthy option for investors looking at the energy sector.

Overall, Marathon Petroleum stands out as a solid choice for those considering these promising growth stocks in the energy market, especially given its adaptability and robust financial health.

17. BP

BP is a major player in the global energy market, known for its extensive operations in oil and gas. The company is focusing on transitioning towards renewable energy sources while maintaining its oil production.

Recent Performance

Key Highlights

• BP has been scaling back its 2030 energy transition goals.
• The company recently abandoned its target to cut oil production.
• BP is investing in renewable energy projects to diversify its portfolio.

BP is navigating a challenging landscape as it balances traditional oil production with a shift towards greener energy solutions.

Analyst Ratings

• BP currently holds a Hold rating from analysts.
• The consensus suggests a moderate buy potential based on future performance.
• Recent earnings reports indicate a slight decline in stock value, reflecting market fluctuations.

Conclusion

BP remains a significant option for investors looking for long-term gains in the energy sector, especially as it adapts to changing market demands and environmental considerations.

18. Devon Energy

Devon Energy is a major player in the oil and gas industry, focusing on the exploration and production of oil and natural gas. The company has shown strong performance in recent years, making it a solid choice for long-term investors.

Key Highlights:

• Market Capitalisation: Approximately $20 billion.
• YTD Performance: Up by 15%.
• Dividend Yield: 5%.

Pros and Cons:

Pros:

• Strong cash flow generation.
• Diversified asset base across multiple regions.
• Commitment to returning capital to shareholders through dividends and buybacks.

Cons:

• Exposure to fluctuating oil prices.
• Regulatory challenges in certain regions.
• Dependence on the performance of the natural gas market.

Financial Overview:

Devon Energy’s focus on sustainable practises and innovation positions it well for future growth in the energy sector.

In summary, Devon Energy stands out as a strong candidate for investors looking for stability and growth in the oil sector. Its commitment to shareholder returns and solid financial performance make it a noteworthy option for long-term gains.

19. Pioneer Natural Resources

Pioneer Natural Resources is a leading player in the oil and gas sector, primarily focused on the Permian Basin. This company has shown strong performance and resilience in the ever-changing energy market.

Key Highlights

• Market Capitalisation: As of 2023, Pioneer boasts a market cap of approximately $63 billion.
• Production Rates: The company reported an average production of around 600,000 barrels of oil equivalent per day.
• Financial Performance: In 2023, Pioneer achieved a net income of $4.5 billion, showcasing its robust financial health.

Pros and Cons

Pros:

• Strong operational efficiency in the Permian Basin.
• Consistent dividend payments, appealing to income-focused investors.
• Commitment to sustainable practises and reducing carbon footprint.

Cons:

• Exposure to fluctuating oil prices can impact profitability.
• Regulatory challenges in the energy sector may pose risks.
• Competition from renewable energy sources is increasing.

Pioneer Natural Resources is well-positioned for future growth, especially with its focus on sustainable practises and efficient operations. Investors should keep an eye on its performance as the energy landscape evolves.

Summary Table

20. EnLink Midstream

EnLink Midstream is a key player in the energy sector, focusing on the transportation and processing of natural gas and natural gas liquids. The company has recently seen a boost in its stock performance, with its relative strength (RS) rating climbing from 69 to 77, indicating a positive trend in investor confidence.

Key Highlights:

• Strong Financial Growth: EnLink’s total midstream segment is projected to achieve an annual EBITDA of approximately $450 million.
• Future Opportunities: The company is well-positioned for both organic growth and potential external transactions.
• Market Position: EnLink is strategically located in key energy-producing regions, enhancing its operational efficiency.

Pros and Cons:

Pros:

1. Diverse service offerings in the midstream sector.
2. Strong relationships with major energy producers.
3. Potential for significant future growth.

Cons:

1. Vulnerability to fluctuations in energy prices.
2. Regulatory challenges in the energy sector.
3. Competition from other midstream companies.

EnLink Midstream’s recent RS rating upgrade reflects its strong market position and growth potential, making it a noteworthy option for long-term investors in the energy sector.

21. Cheniere Energy

Cheniere Energy is a key player in the liquefied natural gas (LNG) market, focusing on the production and export of LNG. The company has made significant investments in infrastructure, which positions it well for future growth. Here are some important points about Cheniere Energy:

• Strong Market Position: Cheniere is one of the largest LNG exporters in the United States, benefiting from rising global demand for cleaner energy sources.
• Expansion Plans: The company is actively expanding its facilities to increase production capacity, which is crucial for meeting future demand.
• Financial Performance: Cheniere has shown robust financial results, with increasing revenues and profits over the past few years.

Cheniere Energy’s commitment to expanding its LNG production capabilities is a strategic move to capitalise on the growing global energy market.

In summary, Cheniere Energy stands out as a strong investment option in the energy sector, particularly for those looking at long-term gains in the LNG market.

22. Antero Resources

Antero Resources is a prominent player in the oil and gas sector, primarily focusing on natural gas and natural gas liquids. The company has shown strong potential for growth, making it a noteworthy option for long-term investors.

Key Highlights

• Positive Stock Signals: The Antero Resources stock holds buy signals from both short and long-term moving averages, indicating a promising forecast for the stock.
• Strong Production Capacity: Antero has a robust production capacity, which is essential for meeting increasing energy demands.
• Strategic Investments: The company is investing in new technologies to enhance efficiency and reduce costs.

Financial Overview

Antero Resources is well-positioned to benefit from the growing demand for natural gas, especially as the world shifts towards cleaner energy sources.

Conclusion

In summary, Antero Resources stands out as a solid choice for investors looking for long-term gains in the energy sector. With its positive stock signals and strategic investments, it is likely to continue its upward trajectory in the coming years.

23. Cabot Oil & Gas

Cabot Oil & Gas is a significant player in the energy sector, primarily focusing on natural gas production. The company has shown consistent growth over the years, making it a strong candidate for long-term investment. Here are some key points about Cabot Oil & Gas:

• Strong Production Growth: The company has consistently increased its production levels, which is crucial for maintaining profitability.
• Low Operating Costs: Cabot has managed to keep its operating costs low, allowing for better margins even when gas prices fluctuate.
• Strategic Acquisitions: The company has made several strategic acquisitions that have expanded its resource base and market reach.

Financial Overview

Cabot Oil & Gas is well-positioned to benefit from the increasing demand for natural gas, especially as the world shifts towards cleaner energy sources.

In summary, Cabot Oil & Gas stands out due to its strong fundamentals and strategic positioning in the market, making it a worthy consideration for investors looking for long-term gains in the energy sector.

24. Crescent Point Energy

Crescent Point Energy is a Canadian oil and gas company that focuses on the exploration and production of crude oil and natural gas. The company has shown resilience in a fluctuating market, making it a noteworthy option for long-term investors.

Key Highlights

• Stock Performance: As of August 13, 2024, Crescent Point Energy’s stock was priced at $8.59, reflecting a stable market position.
• Market Strategy: The company is known for its strategic acquisitions and efficient operations, which help maintain profitability even during downturns.
• Future Outlook: Analysts are optimistic about Crescent Point’s growth potential, especially with its focus on sustainable practises and technology.

Financial Overview

Crescent Point Energy is committed to enhancing shareholder value through disciplined capital allocation and operational excellence.

Why Consider Crescent Point Energy?

1. Strong Dividend: The company offers a competitive dividend, making it attractive for income-focused investors.
2. Growth Potential: With ongoing investments in technology, Crescent Point is well-positioned for future growth.
3. Resilient Operations: The firm has demonstrated the ability to adapt to changing market conditions, ensuring stability for its investors.

25. Newfield Exploration and more

Newfield Exploration is a notable player in the oil and gas sector, focusing on high-quality assets that promise long-term growth. The company has made significant strides in optimising its operations and enhancing shareholder value. Here are some key points about Newfield Exploration:

• Strong Production Growth: Newfield has consistently increased its production levels, with a focus on the Bakken Shale and other lucrative regions.
• Financial Health: The company maintains a solid balance sheet, allowing it to invest in new projects while returning value to shareholders.
• Strategic Acquisitions: Newfield has a history of acquiring assets that complement its existing portfolio, enhancing its overall market position.

Key Financial Metrics

Newfield’s commitment to sustainable practises and efficient operations positions it well for future growth in the energy sector.

In summary, Newfield Exploration stands out for its strategic focus and robust financial health, making it a worthy consideration for investors looking for long-term gains in the energy market. While special dividends are nice, the stock isn’t a buy for everyone, as it requires careful analysis of its growth potential and market conditions.

Frequently Asked Questions

How many oil companies are there?

In the U.S., there are around 9,000 independent oil and gas producers. The S&P 500 includes 23 energy stocks, and there are 258 public energy stocks on major U.S. exchanges.

Are oil stocks a smart investment?

Yes, they can be. Although the energy sector has lagged behind the S&P 500 over the last decade, oil stocks can do very well when oil prices are high.

Will oil stocks increase in value?

It’s tough to predict stock price changes, but many analysts believe 2024 will be a good year for oil stocks, suggesting a potential 17.8% increase in the energy sector.

What are the risks of investing in oil stocks?

Oil stocks can be quite volatile. If oil prices fall, your investments may lose value, so it’s important to be prepared for ups and downs.

How can I invest in oil stocks?

You can buy shares of individual oil companies or invest in exchange-traded funds (ETFs) that include multiple oil stocks for diversification.

What are the benefits of owning oil stocks?

Oil stocks often pay high dividends, which can provide income. They can also help balance a portfolio since their performance might not always match other stocks.

What should I consider before investing in oil stocks?

Make sure to understand the company’s financial health and industry position. Diversifying your investments can also help reduce risk.

Are there alternatives to investing in individual oil stocks?

Yes, you can consider investing in ETFs that track the oil and gas sector, which provide exposure to a range of companies.