Best Oil Stocks to Watch can be a great addition to an investor’s portfolio, but it’s important to keep a close eye on the industry’s trends and projections. As we look ahead to 2023, there are several oil stocks worth watching.
One of the top contenders is Chevron (CVX), a major player in the industry with a strong track record of profitability. Another company to keep an eye on is ConocoPhillips (COP), which has been actively investing in renewable energy and is well-positioned for the transition away from fossil fuels.
Finally, ExxonMobil (XOM) is another major player that may be poised for a rebound in the coming years after a difficult period of declining profits. However, it’s important to remember that oil stocks can be volatile and subject to market fluctuations, so it’s always a good idea to conduct thorough research and diversify your portfolio.
What Is Oil Stocks?
Oil stocks refer to shares of companies that are involved in the exploration, production, refining, and distribution of oil and other petroleum products. These companies may own and operate oil fields, refineries, pipelines, and other infrastructure that are used to extract, process, and transport oil and gas.
Investing in oil stocks can provide investors with exposure to the energy industry and the potential for financial gain through dividends, capital appreciation, and other investment returns.
However, oil stocks can be subject to market fluctuations and geopolitical risks, making them a potentially volatile investment. As the world transitions towards renewable energy, there may also be uncertainties around the long-term prospects of the oil industry and its related stocks.
Here Is List Of Best Oil Stocks to Watch 2024
- ExxonMobil Corp
- Reliance Industries
- Phillips 66 Company
- ONGC
- SilverBow Resources Inc
- TotalEnergies SE
- Chevron Corp
- VAALCO Energy
- Deep Energy Resources
- ConocoPhillips
- Occidental Petroleum Corp
- Oil India
- Vital Energy
- Petronet LNG
- Jindal Drilling and Industries
1. ExxonMobil Corp
ExxonMobil Corp is an American multinational oil and gas corporation that is headquartered in Irving, Texas. It is one of the largest publicly traded companies in the world, and it is involved in all aspects of the oil and gas industry, including exploration, production, refining, marketing, and transportation. ExxonMobil was formed in 1999 as a result of a merger between Exxon Corporation and Mobil Corporation.
ExxonMobil operates in more than 200 countries and territories around the world, and it employs over 70,000 people. The company’s products include gasoline, diesel fuel, natural gas, lubricants, and petrochemicals. ExxonMobil is also involved in the production of renewable energy, including wind and solar power.
ExxonMobil has faced criticism in recent years over its role in climate change and its response to the issue. The company has been accused of funding climate change denial and downplaying the risks of global warming. ExxonMobil has also been involved in several high-profile environmental disasters, including the Exxon Valdez oil spill in Alaska in 1989 and the Deepwater Horizon oil spill in the Gulf of Mexico in 2010.
2. Reliance Industries
Reliance Industries Limited (RIL) is an Indian multinational conglomerate company that is headquartered in Mumbai, India. Founded in 1960 by Dhirubhai Ambani, the company initially started as a small textile manufacturer but has since grown into one of the largest companies in India and the world.
Today, Reliance Industries operates in a wide range of industries, including petrochemicals, refining, oil and gas exploration and production, telecommunications, retail, and media. Its subsidiaries and affiliated companies include Reliance Jio Infocomm Limited (telecommunications), Reliance Retail (retail), Reliance Petroleum, and Reliance Foundation.
Reliance Industries is the largest private sector company in India, and it has a significant presence in the global market. The company’s products and services are sold in more than 100 countries around the world, and it employs over 200,000 people.
3. Phillips 66 Company
Phillips 66 Company is an American multinational energy company that is headquartered in Houston, Texas. The company was formed in 2012 as a result of a spinoff from ConocoPhillips, and it operates in various segments of the oil and gas industry, including refining, marketing, chemicals, and midstream.
Phillips 66 owns or operates 13 refineries in the United States, Europe, and Asia, with a combined capacity of over 2 million barrels per day. The company’s marketing and specialties segment includes the marketing and sale of refined petroleum products, lubricants, and other specialty products. Its chemicals segment produces and markets petrochemicals and plastics.
In addition to its refining and marketing operations, Phillips 66 is also involved in midstream activities, such as transportation, storage, and processing of natural gas and natural gas liquids.
Phillips 66 has also invested in renewable energy and sustainable technology, including a joint venture with Renewable Energy Group to produce renewable diesel fuel from waste fats, oils, and greases.
4. ONGC
Oil and Natural Gas Corporation (ONGC) is an Indian multinational oil and gas company that is headquartered in Dehradun, Uttarakhand, India. The company was founded in 1956 and is the largest producer of crude oil and natural gas in India.
ONGC is involved in all aspects of the oil and gas industry, including exploration, production, refining, and marketing. The company has a significant presence in India and also operates in other countries, including Russia, Vietnam, and Sudan.
ONGC’s exploration and production activities are primarily focused on offshore and onshore fields in India. The company operates over 100 fields, and its crude oil production accounts for around 70% of India’s total domestic production.
In addition to its oil and gas operations, ONGC also has interests in power generation, petrochemicals, and renewable energy. The company has invested in wind power and solar energy projects, and it aims to increase its renewable energy capacity in the coming years
5. SilverBow Resources Inc
SilverBow Resources Inc. is an American independent oil and gas exploration and production company headquartered in Houston, Texas. The company’s operations are primarily focused on the Eagle Ford shale in South Texas, where it has significant acreage positions and operates over 1,200 producing wells.
SilverBow Resources has a diversified asset base with significant reserves of oil, natural gas, and natural gas liquids. The company’s operations are focused on unconventional resources and the use of advanced drilling and completion techniques to maximize production.
SilverBow Resources is committed to responsible environmental stewardship, and it has implemented various measures to minimize the impact of its operations on the environment. The company has also implemented safety programs to ensure the health and safety of its employees and contractors.
SilverBow Resources is publicly traded on the New York Stock Exchange under the ticker symbol “SBOW.” The company is committed to creating value for its shareholders through a combination of organic growth and strategic acquisitions.
6. TotalEnergies SE
TotalEnergies SE is a French multinational energy company that is headquartered in Paris, France. The company operates in all segments of the oil and gas industry, including exploration, production, refining, and marketing.
TotalEnergies is one of the largest oil and gas companies in the world, with operations in more than 130 countries. The company’s activities are divided into four business segments: Exploration & Production, Gas, Renewables & Power, and Refining & Chemicals.
The Exploration & Production segment is focused on oil and gas exploration and production, with operations in Africa, the Middle East, the North Sea, and other regions. The Gas, Renewables & Power segment is involved in the production and marketing of natural gas, renewable energy, and electricity.
The Refining & Chemicals segment is focused on refining crude oil and producing petrochemicals and specialty chemicals. TotalEnergies also has a marketing and services segment that is responsible for the sale of petroleum products, as well as the provision of related services such as fuel cards, lubricants, and aviation fuel.
7. Chevron Corp
Chevron Corporation is an American multinational energy company that is headquartered in San Ramon, California. The company operates in all segments of the oil and gas industry, including exploration, production, refining, and marketing.
Chevron is one of the largest oil and gas companies in the world, with operations in over 180 countries. The company’s operations are divided into two business segments: Upstream and Downstream.
The Upstream segment is focused on oil and gas exploration and production, with operations in the United States, Africa, Asia, Europe, and Latin America. Chevron is one of the largest producers of oil and gas in the United States, with significant operations in the Permian Basin in Texas and New Mexico.
The Downstream segment is focused on refining crude oil and marketing petroleum products, including gasoline, diesel fuel, and lubricants. Chevron operates a network of refineries in the United States and around the world, with a total refining capacity of over 1.9 million barrels per day.
8. VAALCO Energy
VAALCO Energy is an independent energy company that is focused on the exploration, development, and production of oil and natural gas in West Africa. The company is headquartered in Houston, Texas and has operations in Gabon and Equatorial Guinea.
VAALCO Energy has a significant presence in Gabon, where it operates offshore oil fields in the Etame Marin block. The company also has interests in other exploration and production blocks in Gabon and Equatorial Guinea.
VAALCO Energy is committed to responsible environmental stewardship and has implemented various measures to minimize the impact of its operations on the environment. The company has also implemented safety programs to ensure the health and safety of its employees and contractors.
VAALCO Energy is publicly traded on the New York Stock Exchange under the ticker symbol “EGY.” The company is committed to creating value for its shareholders through a combination of organic growth and strategic acquisitions.
9. Deep Energy Resources
Deep Energy is a company that is engaged in various aspects of the oil and gas industry, including drilling, work-over, air and gas compression, and oil and gas exploration and production. The company operates in the United States and is focused on developing and producing oil and gas reserves in the Rocky Mountain region.
The company’s stock price has shown significant movement over the last twelve months, which could be attributed to a variety of factors such as changes in oil and gas prices, market trends, and company-specific news or events. It’s worth noting that stock price movements are subject to a range of factors and can be volatile, so investors should conduct thorough research and analysis before making any investment decisions.
10. ConocoPhillips
ConocoPhillips is an American multinational energy corporation that is headquartered in Houston, Texas. The company is one of the largest independent oil and gas exploration and production companies in the world.
ConocoPhillips operates in over 20 countries, with a significant presence in North America, Europe, Asia, and Australia. The company’s operations are divided into two business segments: Upstream and Downstream.
The Upstream segment is focused on exploring, developing, and producing crude oil and natural gas. ConocoPhillips has a significant presence in the United States, where it operates in several shale plays, including the Permian Basin, Eagle Ford, and Bakken. The company also has operations in Canada, Norway, the United Kingdom, Australia, and Malaysia, among others.
The Downstream segment is focused on refining crude oil and marketing petroleum products, including gasoline, diesel fuel, and lubricants. ConocoPhillips operates a network of refineries in the United States and around the world, with a total refining capacity of over 2 million barrels per day.
ConocoPhillips is committed to sustainable development and has made significant investments in renewable energy and energy efficiency. The company has invested in wind and solar projects, as well as in technologies to reduce greenhouse gas emissions from its operations.
11. Occidental Petroleum Corp
Occidental Petroleum Corporation, also known as Oxy, is an American multinational energy company that is headquartered in Houston, Texas. The company operates in several business segments, including oil and gas exploration and production, chemicals, and midstream and marketing.
Oxy has a global presence, with operations in the United States, Middle East, and Latin America. The company is focused on developing and producing oil and gas reserves in the Permian Basin, one of the largest oil-producing regions in the world. Oxy also has operations in the Middle East, where it has significant oil and gas production in Oman and the United Arab Emirates.
In addition to its oil and gas operations, Oxy is a major producer of chemicals, including ethylene, polyethylene, and polypropylene. The company’s chemicals are used in a variety of applications, including packaging, construction materials, and automotive components.
Oxy is committed to sustainable development and has set ambitious goals to reduce greenhouse gas emissions from its operations. The company has invested in renewable energy, including wind and solar projects, and is working to develop technologies to capture and sequester carbon dioxide.
12. Oil India
Oil India Limited is a public sector oil and gas exploration and production company that is headquartered in Duliajan, Assam, India. The company was founded in 1959 and is one of the largest oil and gas companies in India.
Oil India has a significant presence in the northeast region of India, where it operates several oil and gas fields, including the Digboi, Naharkatiya, Moran, and Rudrasagar fields. The company also has operations in several other parts of India, as well as in overseas locations such as Libya, Gabon, and Nigeria.
Oil India is focused on exploration, development, and production of crude oil, natural gas, and liquefied petroleum gas (LPG). The company also operates a network of pipelines for transportation of crude oil and petroleum products.
Oil India is committed to sustainable development and has made significant investments in renewable energy and energy efficiency. The company has invested in solar power projects, as well as in technologies to reduce greenhouse gas emissions from its operations.
13. Vital Energy
Vital Energy is an oil and natural gas exploration and development company focused on the Permian Basin in West Texas. The company was formerly known as Laredo Petroleum, Inc. before changing its name to Vital Energy in January 2023.
Vital Energy’s operations are primarily focused on the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin. The company’s assets include approximately 137,000 net acres in the Midland Basin and approximately 85,000 net acres in the Delaware Basin.
However, the company faced some challenges in the fourth quarter of 2022, with net income falling by 45% due to weaker sales volume and lower average natural gas prices. Despite this, Vital Energy remains committed to its strategy of disciplined capital allocation and operational excellence to create long-term value for its shareholders.
14. Petronet LNG
Petronet LNG Limited is an Indian oil and natural gas company that specializes in liquefied natural gas (LNG) import and regasification. The company was established in 1998 and is headquartered in New Delhi, India.
Petronet LNG operates India’s first LNG import terminal at Dahej, Gujarat, with a capacity of 17.5 million tonnes per annum (mtpa). The company also operates a second terminal at Kochi, Kerala, with a capacity of 5 mtpa. The terminals receive LNG from various sources, including Qatar, Australia, and the United States, and supply natural gas to customers across India.
Petronet LNG is focused on expanding its LNG import and regasification infrastructure to meet the growing demand for natural gas in India. The company has proposed several new LNG terminals at various locations in India, including Gangavaram, Andhra Pradesh, and Kutubdia Island, Bangladesh.
Petronet LNG is committed to sustainable development and has set ambitious goals to reduce its carbon footprint. The company has invested in renewable energy, including solar power, and is exploring the use of LNG as a transportation fuel to reduce emissions in the transportation sector.
15. Jindal Drilling and Industries
Jindal Drilling and Industries is an Indian company that specializes in drilling services for oil and gas exploration and production. The company was established in 1983 and is headquartered in New Delhi, India.
Jindal Drilling offers a wide range of drilling services, including offshore drilling, onshore drilling, workover services, and drilling management services. The company operates a fleet of drilling rigs, including jack-up rigs, drilling barges, and onshore drilling rigs, that can operate in a variety of environments and depths.
Jindal Drilling has a strong presence in the Indian offshore drilling market and has worked with many of India’s leading oil and gas companies, including ONGC, Reliance Industries, and Cairn India. The company has also expanded its operations to other countries in the region, including Indonesia, Myanmar, and Bangladesh.
Jindal Drilling is committed to maintaining the highest standards of safety, health, and environmental protection in all of its operations. The company has implemented a comprehensive safety management system and has received several awards for its safety performance.
Conclusion
In conclusion, the oil and gas industry is a critical component of the global economy, and oil stocks can provide attractive investment opportunities for investors looking to capitalize on the sector’s growth potential. While the industry is facing significant challenges due to the ongoing transition towards renewable energy sources and concerns about climate change, several oil stocks are poised to perform well in 2023 and beyond.
Companies such as Chevron, ConocoPhillips, and TotalEnergies SE have strong financial positions and are investing heavily in renewable energy and low-carbon technologies to meet the growing demand for cleaner energy. Other companies, such as Petronet LNG and Jindal Drilling and Industries, are focused on providing critical services to the industry and are well-positioned to benefit from the ongoing demand for oil and gas.
Investors should be aware of the risks associated with investing in oil stocks, including volatility in commodity prices and geopolitical risks. However, for those willing to take on these risks, there may be opportunities for significant returns in the coming years. As always, investors should conduct their due diligence and seek the advice of a financial advisor before making any investment decisions.
FAQ
What are the best oil stocks to watch in 2023?
Some of the best oil stocks to watch in 2023 include Chevron, ConocoPhillips, TotalEnergies SE, Petronet LNG, and Jindal Drilling and Industries.
Why are these oil stocks worth watching?
These oil stocks are worth watching because they have strong financial positions, are investing in renewable energy and low-carbon technologies, and are well-positioned to benefit from the ongoing demand for oil and gas.
What are the risks associated with investing in oil stocks?
Some of the risks associated with investing in oil stocks include volatility in commodity prices, geopolitical risks, and the ongoing transition towards renewable energy sources.
Should I invest in oil stocks?
Whether or not to invest in oil stocks depends on your investment goals, risk tolerance, and overall portfolio strategy. While there may be opportunities for significant returns, investing in oil stocks also carries risks. As always, investors should conduct their due diligence and seek the advice of a financial advisor before making any investment decisions.
Can oil stocks benefit from the ongoing demand for cleaner energy?
Yes, oil stocks can benefit from the ongoing demand for cleaner energy by investing in renewable energy and low-carbon technologies. Companies that successfully transition to cleaner energy sources may be better positioned to thrive in the long term.
