Top Oil and Gas Stock List

Verdasi displays a list of the most popular Oil and Gas Stocks with their latest price information. We provide coverage for Oil and Gas Stocks across NASDAQ, NYSE, AMEX, and TSX(V) exchanges. Select a company to view their company profile and historic intraday stock prices.

What are Oil and Gas Stocks?

Oil and gas stand as the oldest in the stock markets. The industry comprises companies dealing in exploration and mining, pipeline firms involved in storage and transportation, and refining. Another class of companies in the industry is those that produce drilling equipment or services.

Some notable names in the oil and gas stocks include the Royal Dutch Shell PLC, Chevron Corporation, PetroChina Company Ltd, Exxon Mobil Corporation, and TotalEnergies SE.

The oil and gas stock market is one of the hottest, attracting investors across the board. Even though alternative energy is chipping in, it will take a while before the fossil fuels are weaned completely. As the industry transitions, the oil and gas stocks offer a lot of money to investors.

Within the past year, the market experienced a doubling of crude oil prices, and analysts explain that the global demand will surge by the end of the year. That means the shroud investors shouldn't waste any more time but find the most promising oil and gas stocks to invest their money in.

Is It Too Late To Invest in Oil and Gas?

Although the fossil fuel prices are high, it's never too late to buy your stocks in the oil and gas industry. About a year ago, the prices took a deep plunge as governments imposed travel bans that forced commerce to shut down due to COVID-19. With millions staying at home, the demand for fossil fuels decreased significantly, causing the prices to reduce immensely.

That was quite a dark moment for the oil and gas stock investors. However, the prices have again taken a steep increase as economies reopened after a breakthrough in the Covid-19 vaccine. As the economies continue to recover, the prices continue to rise steadily, and the investors are smiling again.

With the current prices, it's not too late to invest in oil and gas stock. Energy Select Sector SPDR ETF (XLE) is the best representation of the oil and gas industry. Even though the sector also consists of non-fossil fuel companies, the dominant ones are within the fossil fuel industry.

As such, the performance of the energy sector offers an excellent benchmark for the oil and gas industry in general. During 2020, XLE ETF attained a 46.% return outdoing the 44.4% recorded by Russel 1000. That's is a clear indication that there's an excellent opportunity for those who still want to invest in oil and gas stocks.

How Do You Start Oil and Gas Stock Investment?

Before starting investment in the industry, it's worth noting how volatile the oil and gas sector can get. Due to the high volatility, it's important to base your focus on firms that can overcome the inevitable downturns of the industry.

Choose companies that have some immunity to the fluctuation of prices, like E&Ps with extremely low production costs. Another strategy would be to focus on generating dividend income.

Is it worth investing in Oil And Gas Stocks?

Like other stocks, fossil fuel equities are also highly volatile. Within the oil and gas industry, some companies tend to be safer for investment. Petroleum-based and natural gas typically bear an advantage over transportation and heating fuels.

Additionally, they possess a tremendous infrastructure advantage compared to the upcoming clean energy fuels. Apart from that, the oil and gas industry also posses disadvantages that increase risks for investment.

Should I add Oil and Gas Stocks to my Portfolio?

If you've been trading the stocks for a while, you must have realized that the world's largest companies in stock value are in oil and gas. However, that doesn't mean that those big companies are an excellent investment. You'll need to look deeper into other things other than their current stock listings.

The oil and gas sector has undergone a significant amount of volatility in the past years. As such, investors keep wondering if the companies in the industry are a wise investment. But in reality, if you're looking for a better way of investing for long-term returns, oil and gas stocks are the best choice.

How Safe is Your Oil and Gas Stock Investment?

The biggest concern for any investor is the safety of their investments. Every stockholder wants an assurance that a company's shares will not decrease or remain stagnant over a specific time frame. Investing in any stock comes with risks. The oil and gas sector has some other disadvantages that make it riskier to invest.

That doesn't mean the industry isn't a good investment choice. You'll have to look for particular companies with a tradition of good performance.  Like the other industries, the prominent companies pose fewer risks than the smaller ones.

The dominant companies in the oil and gas sector that are safer to invest in include Exxon Mobil, Chevron, Royal Dutch Shell BP, TotalEnergies SA. These firms have global operations raking annual revenues of over $100 billion. They're also not anywhere close to getting bankrupt either.

Due to cyclical price decreases, smaller firms in the industry can run bankrupt anytime. As such, market capitalization is a vital strategy in investing in oil and gas stocks. During the crude oil price crash of 2014, most offshore operating firms downed their tools, while some declared bankruptcy due to reduced demand.

Equally, when crude oil prices dropped in March 2020 due to demand decline, some minor E&P firms went bankrupt. Some of them include Chesapeake Energy and Whiting Petroleum. Generally, more prominent companies are better positioned and will rarely run out of business. Hence they are a safer stock investment.

What are The Benefits of Oil and Gas Stock Investment?

Despite the risks of volatility, cyclicality, and uncertainty, the oil and gas industry offer many advantages if investors choose their stocks wisely.

High capital gains and dividends

Oil and gas stocks can offer tremendous capital gains and excellent dividends from the appreciation of shares when the prices increase. During high price periods, companies will most likely generate more revenue.

With more revenue, they can acquire more oil wells, settle debts, pay dividends, and repurchase stocks, increasing their value. A key point to note is that dividends tend to be attractive when companies rake more profits during conducive periods. With increased dividends, more investors increase their provisions to earn higher rewards.

Smart investment with the right timing

During economic growth periods, the oil and gas industry often has a higher potential to expand. With proper timing, investing in oil and gas stocks can be a wise investment move.

As economies transition from recession into the next growth phase, the industry can be highly lucrative for those who take the bold move to invest. During such times, the prices of shares and dividends tend to rake higher.

Diversification strategy

You can choose to invest in oil and gas stocks to diversify your portfolio. Investment in the industry can provide some buffer against the inflation movements and fluctuations in market conditions. Those running projects in the oil and ga