Oil companies are those entities that are involved in either one or all of the following activities:
- The downstream refining and distribution of petroleum-based products.
- The midstream transportation, processing of, and storage of oil and other related liquids. This includes things like refined petroleum-based products and natural gas liquids (NGLs) like propane and ethane.
- The upstream exploration and production of both oil and natural gas, in addition to oilfield services.
Oil companies are actually crucial to the world’s economy, as they provide fuel for power and transportation, as well as providing the ingredients to make key products, such as fertilizers, rubber, and plastics. These are all things that we rely on on a daily basis.
Oil investment market
Energy Internat Oil & Gas Investments come with a certain level of risk given just how volatile the price of oil is and how competitive the market is. This means that both profits and losses can swing greatly, depending on how the price of the commodity changes. So investors need to consider this before investing in an oil company. Additionally, they also need to consider how a global movement away from fossil fuels may impact investments made in oil.
That being said, there is still lots of money to be made from the right oil investments. Some of the best oil stocks to invest in 2022 are listed below:
1. Phillips 66 (NYSE: PSX)
This is one of the leading and biggest oil refining companies in the world, and operates out of both Europe and the United States of America. The company has numerous investments in midstream operations, including a large stake in DCP Midstream and Phillips 66 Partners. Because of how its operations are vertically integrated, it is one of the lowest cost refiners within the entire industry. Any investors that are looking to make some money from oil should definitely take a look at this company.
2. Exxon Mobil Corp. (NYSE: XOM)
A huge oil company, Exxon operates in all segments of the gas and oil industry. This includes exploration and production, petrochemical manufacturing, midstream, petroleum products to customers, refining, marketing refined, and even farther downstream. Recent efforts to boost efficiency and reduce running costs have really started to pay off for the company. The company’s stock has been and remains undervalued, thus providing investors with a good opportunity to make a good profit from it.
3. Conoco Phillips (NYSE: COP)
One of the biggest exploration and production companies out there with operations in over a dozen countries throughout the world. Due to the company’s large size, it benefits greatly from economies of scale and being able to access some of the cheapest oil available on the planet. They routinely have one of the best credit ratings amongst all oil companies and have a very low leverage ratio. Over the years, they have been able to produce positive cash flows all while paying our dividends to investors, thus making it a good stock to buy.