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?

Buffett owned several energy stocks throughout his tenure at Berkshire Hathaway (NYSE:BRKB), but he is best known for the company's large stakes in 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 ($665 billion) and Chevron ($412 billion). The top five oil stocks alone account for over $3.2 trillion in market capitalization in early September 2026.

7 Best Oil Stocks for 2026 and How to Invest

By Matthew DiLallo – Updated Sep 8, 2026 at 11:40 AM EST | Fact-checked by Frank Bass

Key Points

Top oil stocks to buy in 2026 include ConocoPhillips and Devon Energy, all of which have different catalysts.
Enbridge offers stability with its pipeline and utility operations, supporting a high dividend yield.
Phillips 66's low-cost refining operations have supported significant cash returns to shareholders.

Oil stocks are publicly traded companies with exposure to the oil market. Oil stocks cover a lot of ground. Some of them drill for oil, some refine it, and some move it from one place to another. Each of these aspects of the value chain responds differently to changes in oil prices and market conditions. That's why picking the right oil stocks is less about finding the company that will benefit most from a spike and more about finding durable businesses that can survive the industry's inevitable downturns to reward investors when prices rebound.

Here's a look at several top oil stocks poised to do exactly that -- hold up during the tough times and thrive in strong markets.

Loading paragraph...

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

Loading image...

7 top oil stocks for 2026

There are over 100 publicly traded oil and gas companies. They include:

Exploration and production (E&P) stocks: These are the companies that find and extract hydrocarbons.
Oilfield services stocks: Companies that provide support, equipment, and services to oil and gas exploration and production companies. Services include drilling, seismic testing, well maintenance, and equipment manufacturing.
Refining stocks: These companies process crude oil into refined products such as gasoline, diesel, and jet fuel.
Energy midstream companies and master limited partnerships (MLPs): Midstream companies own and operate energy infrastructure assets, such as pipelines, storage facilities, and processing plants.
Integrated oil company stocks: These are companies that operate across the entire oil and gas value chain, including exploration, production, transportation, refining, and marketing the finished product.

Here are seven of the best oil stocks to consider buying in 2026.

Loading paragraph...

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)	$164.0 billion	2.46%	Oil, Gas and Consumable Fuels
Devon Energy (NYSE:DVN)	$53.9 billion	2.12%	Oil, Gas and Consumable Fuels
Enbridge (NYSE:ENB)	$109.5 billion	5.55%	Oil, Gas and Consumable Fuels
ExxonMobil (NYSE:XOM)	$675.3 billion	2.51%	Oil, Gas and Consumable Fuels
Phillips 66 (NYSE:PSX)	$104.1 billion	1.92%	Oil, Gas and Consumable Fuels
Chevron (NYSE:CVX)	$422.4 billion	3.30%	Oil, Gas and Consumable Fuels
EOG Resources (NYSE:EOG)	$77.1 billion	2.78%	Oil, Gas and Consumable Fuels

Data as of Sep 10, 2026. Showing 7 of 7 total entries.

Loading ticker_table...

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

1. ConocoPhillips -- the low-cost leader

NYSE: COP

ConocoPhillips

Premium Feature

Moneyball Superscore

78/100

Today's Change

(1.10%) $1.49

Current Price

$136.53

Key Data Points

Market Cap

$164B

Day's Range

$136.15 - $137.87

52wk Range

$85.57 - $137.87

Volume

5.6M

Avg Vol

7.1M

Gross Margin

27.18%

Dividend Yield

2.46%

Loading company_card...

ConocoPhillips (COP +1.10%) is one of the largest E&P companies in the world, with operations across conventional, unconventional (shale), oil sands, and liquefied natural gas (LNG) resources in more than a dozen countries. Its defining edge is its low costs. ConocoPhillips has a breakeven level in the mid-$40s backed by its strong position in the Permian Basin. That enables it to make money in almost any environment.

Management expects its breakeven level to fall into the low-$30s by 2030, driven by its LNG investments and Willow oil project in Alaska. Those investments position the company to generate $7 billion in additional annual free cash flow by 2029, double 2025's level. That will allow the company to return more cash to shareholders. ConocoPhillips aims to deliver dividend growth in the top 25% of the S&P 500 while also repurchasing a meaningful number of shares. ConocoPhillips complements its low-cost structure with one of the highest credit ratings among E&P companies. These factors make it one of the lowest-risk investments in the oil patch.

Loading paragraph...

2. Devon Energy -- the scale up through M&A

NYSE: DVN

Devon Energy

Premium Feature

Moneyball Superscore

74/100

Today's Change

(1.20%) $0.58

Current Price

$48.98

Key Data Points

Market Cap

$54B

Day's Range

$48.63 - $49.45

52wk Range

$31.47 - $52.71

Volume

9.4M

Avg Vol

12M

Gross Margin

27.09%

Dividend Yield

2.12%

Loading company_card...

Loading paragraph...

Dividends Per Share

The dividends a company pays out per share and a commonly used per-share metric.

Loading definition...

3. Enbridge -- the regulated-utility stability play

NYSE: ENB

Enbridge

Premium Feature

Moneyball Superscore

76/100

Today's Change

(-0.65%) $-0.33

Current Price

$50.15

Key Data Points

Market Cap

$110B

Day's Range

$49.84 - $50.78

52wk Range

$45.02 - $58.45

Volume

7.8M

Avg Vol

4.5M

Gross Margin

25.44%

Dividend Yield

5.55%

Loading company_card...

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).

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.

Loading paragraph...

4. ExxonMobil -- scale and capital discipline

NYSE: XOM

ExxonMobil

Premium Feature

Moneyball Superscore

70/100

Today's Change

(2.22%) $3.57

Current Price

$164.23

Key Data Points

Market Cap

$675B

Day's Range

$162.55 - $165.18

52wk Range

$110.39 - $176.41

Volume

13.1M

Avg Vol

15.5M

Gross Margin

20.88%

Dividend Yield

2.51%

Loading company_card...

ExxonMobil (XOM +2.22%) 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 positions the oil giant to 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.

5. Phillips 66 -- the low-cost refiner

Loading paragraph...

NYSE: PSX

Phillips 66

Premium Feature

Moneyball Superscore

69/100

Today's Change

(0.63%) $1.64

Current Price

$260.78

Key Data Points

Market Cap

$104B

Day's Range

$257.93 - $263.66

52wk Range

$126.74 - $263.66

Volume

2.2M

Avg Vol

2.8M

Gross Margin

7.92%

Dividend Yield

1.92%

Loading company_card...

Phillips 66 (PSX +0.63%) 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 +1.91%). 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).

It's also investing in the expansion of its operations. In August 2026, Phillips 66 and its partners, Kinder Morgan (KMI -1.78%) and HF Sinclair (DINO -0.16%), 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

Loading paragraph...

NYSE: CVX

Chevron

Premium Feature

Moneyball Superscore

68/100

Today's Change

(1.91%) $4.01

Current Price

$213.81

Key Data Points

Market Cap

$422B

Day's Range

$212.23 - $215.28

52wk Range

$146.49 - $215.28

Volume

8.4M

Avg Vol

8.5M

Gross Margin

18.48%

Dividend Yield

3.30%

Loading company_card...

Chevron is also a fully integrated oil major like ExxonMobil. What distinguishes the company is its growth catalysts. The company also 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.

These deals have enhanced the company's growth profile. Chevron expects to have the fuel 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

Loading paragraph...

NYSE: EOG

EOG Resources

Premium Feature

Moneyball Superscore

71/100

Today's Change

(1.14%) $1.65

Current Price

$147.01

Key Data Points

Market Cap

$77B

Day's Range

$146.48 - $148.17

52wk Range

$101.59 - $153.67

Volume

2.5M

Avg Vol

3.4M

Gross Margin

43.24%

Dividend Yield

2.78%

Loading company_card...

EOG (EOG +1.14%) has been called the "Apple (AAPL -0.28%) 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. That's a nearly unmatched returns profile in the oil patch.

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.

Loading paragraph...

Benefits and risks of investing in oil stocks

Some of the benefits of investing in oil stocks include:

Capitalizing on rising oil prices: Oil stock prices tend to rise with crude prices.
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, making them ideal passive-income investments.

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

Volatility: Energy markets are notoriously cyclical, and oil is highly sensitive to supply-and-demand dynamics. Even a slight imbalance between supply and demand can cause the oil market to go haywire.
Geopolitical issues: Oil prices are highly susceptible to geopolitical risks. International sanctions, wars, and OPEC can all influence oil prices.
Climate change: Environmental concerns are driving increased adoption of lower-carbon energy sources, reducing future oil demand.

Methodology: How these stocks were chosen

I selected this group of oil stocks from across the value chain -- exploration and production, midstream, and refining -- to provide investors with a balance of options. I selected each company based on the following four characteristics:

Low breakeven costs or regulated cash flow
Balance sheet strength
Dividend record
Clear near-term growth catalysts

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 fueling the global economy. While demand is slowing due to the growing adoption of lower-carbon alternative energy and increased electrification, oil will continue to play a crucial role in driving economic growth. As a result, investors should consider owning some oil stocks. While they'll likely be volatile, they could help fuel higher octane returns over the long run as oil demand rises.

Loading paragraph...

Investing in oil stocks: FAQ

Loading faq...

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. Devon Energy -- the scale up through M&A

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

Is it good to invest in oil stocks?

Is it good to invest in oil stocks?

What oil stocks did Warren Buffett buy?

What oil stocks did Warren Buffett buy?

What oil stocks pay a dividend?

What oil stocks pay a dividend?

What is the market capitalization of oil stocks?

What is the market capitalization of oil stocks?

About the Author

Read Next

Stocks Mentioned

Motley Fool Stock Advisor’s Latest Pick

Premium Investing Services

7 top oil stocks for 2026

Key Data Points

Key Data Points

Key Data Points

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

Benefits and risks of investing in oil stocks

Methodology: How these stocks were chosen

Should you invest in oil stocks?

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

Is it good to invest in oil stocks?

Is it good to invest in oil stocks?

What oil stocks did Warren Buffett buy?

What oil stocks did Warren Buffett buy?

What oil stocks pay a dividend?

What oil stocks pay a dividend?

What is the market capitalization of oil stocks?

What is the market capitalization of oil stocks?

How to invest in oil stocks