Is it good to invest in oil stocks?

The world is slowly moving away from fossil fuels toward green alternatives, but that transition will take decades. For the foreseeable future, oil stocks remain an attractive way to invest in the overall health of the global economy because so much of what we do -- from transportation to industry to petrochemicals -- relies on oil.

What oil stocks did Warren Buffett buy?

Warren Buffett bought several energy stocks throughout his tenure at Berkshire Hathaway (NYSE:BRKB), including Occidental Petroleum (NYSE:OXY) and Chevron.

What oil stocks pay a dividend?

Most oil companies pay dividends. Oil giants like ExxonMobil and Chevron have a long history of steadily raising their dividends. Investors looking for dividends should also consider pipeline companies such as Enbridge. Many pipeline companies are master limited partnerships, a structure designed to pass income through to investors as distributions.

What is the market capitalization of oil stocks?

The largest oil stock by market capitalization is Saudi Aramco, valued at $1.7 trillion, followed by ExxonMobil ($675 billion) and Chevron ($408 billion). The top five oil stocks alone account for nearly $3.3 trillion in market capitalization in early October 2026.

7 Best Oil Stocks for 2026 and How to Invest

By Matthew DiLallo – Updated Oct 4, 2026 at 3:44 PM EST | Fact-checked by Frank Bass

Key Points

Top oil stocks for 2026 include major players like ExxonMobil and Chevron, which provide more downturn resiliency.
ConocoPhillips stands out with its low-cost operations, aiming to double its free cash flow by 2029.
Enbridge generates stable cash flow through regulated utility and pipeline operations to support its high-yielding dividend.

Oil stocks are publicly traded companies with exposure to the oil market. Some of them drill for oil, some refine it, and some move it, and each part of the value chain responds differently to oil price swings. That's why the best oil stocks aren't necessarily the ones that will gain the most from a spike, but are durable businesses that can survive downturns and reward investors when prices recover.

The seven oil stocks below are rated among the best for their durability and long-term upside potential.

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An oil rig at sunset. — Image source: Getty Images.

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7 top oil stocks for 2026

As of early October 2026, there were 111 publicly traded oil and gas companies in the U.S., according to the MSCI U.S. IMI Energy 25/50 Index (an index designed to capture U.S. energy industry). They include:

Exploration and production (E&P) companies find and extract oil and gas.
Oilfield services companies provide drilling, seismic testing, well maintenance, and manufacturing.
Refining companies turn crude oil into gasoline, diesel, and jet fuel.
Midstream and master limited partnerships (MLPs) own and operate energy infrastructure assets, such as pipelines, storage facilities, and processing plants.
Integrated oil companies operate across the entire oil and gas value chain, from exploration to marketing.

After screening that list, the following seven companies stood out as the best to consider in 2026.

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Ticker Information Table
Name and ticker	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Dividend yield	Industry
ConocoPhillips (NYSE:COP)	$152.3 billion	2.65%	Oil, Gas and Consumable Fuels
Slb (NYSE:SLB)	$72.3 billion	2.40%	Energy Equipment and Services
Enbridge (NYSE:ENB)	$104.2 billion	6.06%	Oil, Gas and Consumable Fuels
ExxonMobil (NYSE:XOM)	$674.4 billion	2.51%	Oil, Gas and Consumable Fuels
Phillips 66 (NYSE:PSX)	$105.6 billion	1.89%	Oil, Gas and Consumable Fuels
Chevron (NYSE:CVX)	$408.4 billion	3.41%	Oil, Gas and Consumable Fuels
EOG Resources (NYSE:EOG)	$74.2 billion	2.89%	Oil, Gas and Consumable Fuels

Data as of Oct 4, 2026. Showing 7 of 7 total entries.

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Let's take a closer look at these oil stocks.

1. ConocoPhillips -- the low-cost leader

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NYSE: COP

ConocoPhillips

Premium Feature

Moneyball Superscore

78/100

Today's Change

(-0.24%) $-0.31

Current Price

$126.75

Key Data Points

Market Cap

$152B

Day's Range

$125.01 - $127.13

52wk Range

$85.57 - $141.62

Volume

5.2M

Avg Vol

6.7M

Gross Margin

27.18%

Dividend Yield

2.65%

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2. SLB -- the oilfield services leader

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NYSE: SLB

Slb

Premium Feature

Moneyball Superscore

78/100

Today's Change

(0.16%) $0.08

Current Price

$48.74

Key Data Points

Market Cap

$72B

Day's Range

$47.72 - $49.34

52wk Range

$31.64 - $60.46

Volume

12.6M

Avg Vol

12.7M

Gross Margin

16.81%

Dividend Yield

2.40%

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SLB (SLB +0.16%) is the world's largest energy technology and oilfield services company. It helps oil companies enhance production, improve recovery, and extend the life of existing wells. SLB benefits when oil prices rise, as that drives more demand for oilfield services, boosting prices and volumes, while lower prices can have a meaningful impact on margins.

The company also has a growing digital business, including its recent expansion into the data center segment to support rising demand. Its data center solutions revenue soared 63% during the first six months of 2026. SLB significantly expanded its data center infrastructure platform in August 2026, agreeing to acquire Kelvion. While data center infrastructure is a fast-growing platform, it's shifting the company away from the oil market, while adding integration and other risk factors.

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3. Enbridge -- the regulated-utility stability play

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NYSE: ENB

Enbridge

Premium Feature

Moneyball Superscore

77/100

Today's Change

(-0.65%) $-0.30

Current Price

$45.97

Key Data Points

Market Cap

$104B

Day's Range

$45.70 - $46.52

52wk Range

$45.02 - $58.45

Volume

6.6M

Avg Vol

Gross Margin

25.44%

Dividend Yield

6.06%

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Enbridge (ENB -0.65%) stands out from this group as it's not an oil company but is an energy infrastructure play. It operates one of the biggest oil pipeline systems in the world, transporting 30% of the oil produced in North America. Enbridge also has an extensive natural gas pipeline system that moves 20% of the natural gas used in the United States. Additionally, it has the largest natural gas utility franchise in North America by volume, as well as growing renewable energy operations.

What sets Enbridge apart from others in the oil sector is its predictability. More than 98% of its earnings come from long-term contracts and government-regulated rate structures. That provides stable cash flow to support its high-yield dividend. Enbridge has increased its dividend for 31 consecutive years (in Canadian dollars). Currency swings have caused the payment to fluctuate for U.S. investors.

The company is also investing heavily to expand its energy infrastructure operations. It has billions of dollars in expansion projects underway across its four core franchises, which it expects to complete through the early 2030s, with many more under development. These investments should support 5% annual cash flow per share growth after 2026 and a similar dividend growth rate.

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4. ExxonMobil -- scale and capital discipline

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NYSE: XOM

ExxonMobil

Premium Feature

Moneyball Superscore

70/100

Today's Change

(0.12%) $0.19

Current Price

$164.01

Key Data Points

Market Cap

$674B

Day's Range

$161.55 - $164.61

52wk Range

$110.39 - $176.41

Volume

11.3M

Avg Vol

14.2M

Gross Margin

20.88%

Dividend Yield

2.51%

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ExxonMobil (XOM +0.12%) is a fully integrated supermajor that operates in every segment of the oil and gas industry, including E&P, midstream, petrochemical manufacturing, refining, and, even further downstream, marketing refined and petroleum products to customers. The company's current strategy focuses on leveraging its scale to reduce costs and boost efficiency. The oil giant expects to deliver $25 billion in earnings growth and $35 billion in cash flow growth by 2030 at constant prices and margins compared to 2024, implying double-digit annualized growth rates. That drives Exxon's forecast that it will generate $145 billion in cumulative surplus cash over that period at $65 oil.

This cash flow should continue to protect ExxonMobil's dividend, which it has increased for an industry-leading 43 consecutive years. Exxon also plans to continue buying back shares, with $20 billion of repurchases planned for 2026. Though lower future oil prices could impact its ability to return additional cash to investors via share repurchases.

5. Phillips 66 -- the low-cost refiner

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NYSE: PSX

Phillips 66

Premium Feature

Moneyball Superscore

70/100

Today's Change

(0.13%) $0.35

Current Price

$264.58

Key Data Points

Market Cap

$106B

Day's Range

$255.80 - $267.27

52wk Range

$126.74 - $277.12

Volume

2.1M

Avg Vol

2.9M

Gross Margin

7.92%

Dividend Yield

1.89%

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Phillips 66 (PSX +0.13%) is one of the leading oil refining companies, with operations in the U.S. and Europe. It also has investments in midstream operations and in petrochemicals via its CPChem joint venture with Chevron (CVX -0.20%). Its marketing and specialties business distributes refined products and manufactures specialty products, including lubricants.

Thanks to its large-scale, vertically integrated operations, Phillips 66 is among the lowest-cost refiners in the industry. This is the result of its leveraging its integrated midstream network to obtain the lowest-cost crude for refining and petrochemical feedstocks, as well as its investments in projects that give it higher margins on its products. That enables Phillips 66 to generate lots of cash to return to investors. The refiner has increased its dividend every year since its spin-off from ConocoPhillips in 2012; that cost advantage has helped fund 14% compound annual dividend growth and $27 billion in share repurchases (more than 35% of its shares outstanding). However, its refining profits depend on margins, which can compress when oil prices are high.

It's also investing in expanding its operations. In August 2026, Phillips 66 and its partners, Kinder Morgan (KMI +1.77%) and HF Sinclair (DINO +0.59%), approved the Western Gateway Pipeline, a $5 billion system to increase the flow of refined products to Arizona and California.

6. Chevron -- the growth catalysts

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NYSE: CVX

Chevron

Premium Feature

Moneyball Superscore

69/100

Today's Change

(-0.20%) $-0.41

Current Price

$206.69

Key Data Points

Market Cap

$408B

Day's Range

$204.45 - $207.32

52wk Range

$146.49 - $217.78

Volume

6.7M

Avg Vol

8.4M

Gross Margin

18.48%

Dividend Yield

3.41%

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Chevron is also a fully integrated oil major like ExxonMobil. What distinguishes the company is its growth catalysts. It bought Hess in 2025 to enhance its portfolio, including adding a position in high-growth Guyana. Meanwhile, it expanded its operations in Venezuela in September 2026, supporting its plan to invest more than $7 billion over the next five years to double its production to around 600,000 barrels per day. While that adds a major new growth driver, it also adds more political risks.

These deals have enhanced the company's growth profile. Chevron expects to grow its free cash flow by more than 10% annually through 2030 at $70 oil. That should enable Chevron to continue growing its high-yielding dividend, which it has done for 39 straight years.

7. EOG Resources -- the tech-driven efficiency play

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NYSE: EOG

EOG Resources

Premium Feature

Moneyball Superscore

72/100

Today's Change

(0.05%) $0.07

Current Price

$141.38

Key Data Points

Market Cap

$74B

Day's Range

$139.46 - $141.68

52wk Range

$101.59 - $154.16

Volume

3.6M

Avg Vol

3.1M

Gross Margin

43.24%

Dividend Yield

2.89%

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EOG (EOG +0.05%) has been called the "Apple (AAPL +1.02%) of Oil" because of its focus on technology, innovation, and high-margin efficiency. The company focuses almost entirely on extracting oil and gas from the ground as cheaply and intelligently as possible. It controls over 12 billion barrels of oil equivalent resources, with a direct after-tax rate of return exceeding 100% at $55 per barrel of oil. While that high return at a moderate oil price helps cushion the impact of lower prices, its returns would fall as oil prices decline.

The company's low-cost, high-return assets enable it to generate lots of cash. EOG Resources can produce $12 billion in cumulative free cash flow through 2028 at $50 oil and double that number at $80 a barrel. That will give it the funds to continue paying its dividend (28 years of stability and growth) and repurchase shares (a $20 billion authorization approved in 2026).

How to invest in oil stocks

Open your brokerage app: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Benefits and risks of investing in oil stocks

Some of the benefits of investing in oil stocks include:

Capitalizing on rising oil prices: Oil company stock prices often move higher when oil prices spike.
Inflation hedge: Rising oil prices can be a major catalyst for inflation. Investing in oil stocks can help you hedge your portfolio against this risk.
Income: Many oil stocks pay high, steadily rising dividends.

On the other hand, investing in oil stocks isn't without risk, which includes:

Volatility: Energy is cyclical, and small supply-and-demand imbalances can cause sharp price swings that impact oil company earnings.
Geopolitical issues: Oil prices are highly susceptible to geopolitical risks. International sanctions, wars, and OPEC can all influence oil prices.
Demand: Forecasters expect electrification and lower-carbon energy to slow oil demand over the long term, putting the most pressure on producers.

Methodology: How these stocks were chosen

I screened large, U.S.-listed energy companies across the value chain -- exploration and production, midstream, and refining -- to provide investors with a balanced set of options. I scored each on the following four traits:

Cost resilience: Low breakeven costs or mostly regulated/contracted cash flow
Balance sheet strength: Investment-grade credit rating backed by a leverage ratio towards the lower end of its peer group.
Dividend record: A record of dividend growth or stability during multiple industry downturns.
Clear near-term growth catalysts: Specific major capital projects, recently completed acquisition, or capital return program target.

Each company ranked well across those traits, making them stand out as one of the best oil stocks to buy.

Should you invest in oil stocks?

Oil is vital to the global economy. Even as electrification and lower-carbon energy slow demand growth, oil will continue to drive economic activity for decades. Investing in oil stocks isn't for everyone, as crude prices will likely remain volatile. However, for investors seeking exposure to this sector, the more durable names on this list can provide income and long-term return potential to a diversified portfolio.

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Investing in oil stocks: FAQ

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About the Author

Matt DiLallo has been a contributing Motley Fool stock analyst specializing in the energy, industrials, and real estate sectors since 2012. He also covers dividend-paying stocks, pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

TMFmd19

@MatthewDiLallo

Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Chevron, and Enbridge. The Motley Fool recommends ConocoPhillips, EOG Resources, and Phillips 66. The Motley Fool has a disclosure policy.

7 Best Oil Stocks for 2026 and How to Invest

Key Points

7 top oil stocks for 2026

1. ConocoPhillips -- the low-cost leader

Key Data Points

2. SLB -- the oilfield services leader

Key Data Points

3. Enbridge -- the regulated-utility stability play

Key Data Points

4. ExxonMobil -- scale and capital discipline

Key Data Points

5. Phillips 66 -- the low-cost refiner

Key Data Points

6. Chevron -- the growth catalysts

Key Data Points

7. EOG Resources -- the tech-driven efficiency play

Key Data Points

How to invest in oil stocks

Benefits and risks of investing in oil stocks

Methodology: How these stocks were chosen

Should you invest in oil stocks?

Related investing topics

5 Best Oil Dividend Stocks for 2026 and How to Invest

5 Best Oil ETFs for 2026 and How to Invest

How to Calculate Net Revenue Interest for Oil & Gas

3 Best Natural Gas Stocks to Buy in 2026 and How to Invest in Them

Investing in oil stocks: FAQ

About the Author

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Investing in oil stocks: FAQ

Is it good to invest in oil stocks?

What oil stocks did Warren Buffett buy?

What oil stocks pay a dividend?

What is the market capitalization of oil stocks?

1. ConocoPhillips -- the low-cost leader

2. SLB -- the oilfield services leader

3. Enbridge -- the regulated-utility stability play

4. ExxonMobil -- scale and capital discipline

7. EOG Resources -- the tech-driven efficiency play

Benefits and risks of investing in oil stocks

Methodology: How these stocks were chosen

Should you invest in oil stocks?

Related investing topics

7 top oil stocks for 2026

Key Data Points

5. Phillips 66 -- the low-cost refiner

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

How to invest in oil stocks

6. Chevron -- the growth catalysts