Please ensure Javascript is enabled for purposes of website accessibility

How to Avoid the Risks in Oil Production

By Taylor Muckerman and Rick Engdahl – Apr 1, 2013 at 5:45PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Drilling conditions are becoming more and more risky, but investors need not go there.

Oil and natural gas are quickly becoming more expensive to find and produce around the globe. For 2013, the likes of Chevron, ExxonMobil, and Royal Dutch Shell are all planning to spend more than $35 billion in capital expenditures in an attempt to keep their reserve replacement levels above 100% of production. Investors hoping to capture some of this record spending in a less risky atmosphere might turn to some of the more investor-friendly service companies that pay dividends and are well diversified geographically -- including the ones mentioned in the following video.

Richard Engdahl has no position in any stocks mentioned. Taylor Muckerman owns shares of Halliburton and Ensco. The Motley Fool recommends Chevron and Halliburton. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Stocks Mentioned

Royal Dutch Shell plc Stock Quote
Royal Dutch Shell plc
RDS.A
Exxon Mobil Stock Quote
Exxon Mobil
XOM
$106.85 (-2.74%) $-3.01
Chevron Stock Quote
Chevron
CVX
$176.56 (-2.47%) $-4.47
Halliburton Stock Quote
Halliburton
HAL
$36.82 (-5.27%) $-2.05
Valaris plc Stock Quote
Valaris plc
VAL

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.