21 Best Oil Stocks to Buy in 2025

Why Oil Stocks Remain Essential Investments in 2025

The growth of renewable energy does not diminish the investment potential of oil stocks for 2025. Here’s why oil stocks deserve your attention this year.

 

High Dividend Yields & Cash Flow

The attractive nature of oil companies for income-focused portfolios stems from their ability to provide strong dividend payments. The operations cash flow stability enables these companies to maintain dividend payments which provide investors with stable income throughout market volatility.

 

Cyclical Profitability

The price of oil changes because of market forces that determine supply and demand levels. The combination of high prices and limited supply creates conditions that lead to excessive profits for oil companies which investors can leverage for cyclical market gains.

 

Energy Security & Global Demand

The demand for oil persists because it serves as a fundamental fuel source for transportation systems and petrochemical manufacturing and industrial power generation particularly in developing markets where consumption rates keep increasing.

The persistent requirement for oil demonstrates its fundamental position in worldwide energy systems which supports enduring investment opportunities.

 

Top Oil Stocks to Watch in 2025

The following list presents the best oil stocks to buy in 2025 that you should buy in October.

1. Exxon Mobil (XOM)

2. Chevron (CVX)

3. Shell (SHEL)

4. TotalEnergies (TTE)

5. BP (BP)

6. Canadian Natural Resources (CNQ)

7. ConocoPhillips (COP)

8. EOG Resources (EOG)

9. Suncor Energy (SU)

10. Saudi Aramco (2222.SR)

11. Petrobras (PBR)

12. Equinor (EQNR)

13. PetroChina (PTR)

14. Occidental Petroleum (OXY)

15. Pioneer Natural Resources (PXD)

16. Devon Energy (DVN)

17. Hess Corporation (HES)

18. Schlumberger (SLB)

19. Halliburton (HAL)

20. Baker Hughes (BKR)

21. Enbridge (ENB)

 

Exxon Mobil Corp. (NYSE: XOM)

Current Price (28 October 2025): $115.94

Exxon Mobil operates as one of the world's largest publicly traded oil and gas companies which manages all stages of the energy value chain from exploration to production and refining and chemicals.

The company maintains a worldwide reach through its investments in modern technologies and energy transition projects while maintaining its traditional oil and gas operations and cleaner energy development.

The oil stocks sector depends on Exxon Mobil as its major player because of its large size and efficient operations and reliable cash generation.

Key Details:

• Market Cap: $494.28 billion

• P/E Ratio: 16.47

• Dividend Yield: 3.42%

• 52-Week Range: $97.80 - $126.34

• Risk Rating: 1 – Most Stable (blue-chip, diversified operations, strong cash flows)

Recent Developments:

• The company achieved a 3% increase in crude oil production during Q1 2025 because of new project startups.

• The company dedicated more funds to carbon capture and hydrogen projects as part of its energy transition plan.

• The company achieved $9.1 billion in net income during Q1 2025 because of its successful operational performance.

• The company established multiple long-term LNG supply agreements with major global markets to create future revenue opportunities.

Investor Appeal:

Exxon Mobil provides investors with a powerful combination of size and stability together with growth potential in the oil stocks sector.

The company's diverse business operations combined with its reliable dividend payments and clean energy investments appeal to investors who want to balance their investments between current and emerging energy sectors.

Exxon Mobil maintains its position as a fundamental energy stock for investors because of its strong financial stability and worldwide operations.

 

Chevron Corp. (NYSE: CVX)

Current Price (28 October 2025): $155.28

Chevron operates as one of the world's largest integrated energy companies which performs all aspects of oil and gas operations from exploration through production to refining and marketing and renewable energy development.

The company maintains operations across the world while maintaining significant operations in upstream oil production and downstream refining.

The company operates as a leading oil stocks sector participant through its diverse business activities and commitment to sustainable energy development.

Key Details:

• Market Cap: $317.92 billion

• P/E Ratio: 19.99

• Dividend Yield: 4.40%

• 52-Week Range: $132.04 - $168.96

• Risk Rating: 1 – Most Stable (dividend reliability, integrated model, global reach)

Recent Developments:

• The first quarter of 2025 saw a 4% increase in oil production because of new project start-ups.

• The company invested in advanced renewable energy projects which included carbon capture and clean fuels initiatives.

• The company achieved a net income of $7.8 billion during Q1 2025 because of its solid operational performance.

• The company finished acquiring a significant upstream asset which will enhance its future production capabilities.

Investor Appeal:

Through its operations Chevron provides investors with stable energy sector exposure by generating strong cash flow from oil and gas activities while expanding its renewable energy investments.

The company maintains a solid financial position through its stable dividend payments and strategic investments in renewable energy sources which supports both current income and future growth prospects.

Investors who want to combine traditional oil stocks with energy transition opportunities should consider Chevron as their top investment choice.

 

Shell plc (NYSE: SHEL)

Current Price (28 October 2025): $75.51

Shell plc operates as a global integrated energy and petrochemical company, with operations spanning upstream oil & gas exploration and production, LNG and gas‐to‐liquids conversion, refining and chemical manufacturing, mobility and marketing, and renewables & energy solutions.

Its wide spectrum of operations, from traditional fossil fuels to renewable energy infrastructure, positions it as a key player in the global oil stocks sector.

Key Details:

• Market Cap: $216.25 billion

• P/E Ratio: 17.04

• Dividend Yield: 3.76%

• 52-Week Range: $58.55 – $76.28

• Risk Rating: 2 – Stable with moderate transition risk

Recent Developments:

• The company announced a significant share buyback program to enhance shareholder returns and address perceived undervaluation, signalling management’s commitment to capital allocation efficiency.

• Shell warned that its Integrated Gas segment would see lower trading and optimization results for the current quarter compared with the prior year, reflecting weaker gas market conditions and regulatory headwinds in certain geographies.

• Management reaffirmed the company’s ambition to accelerate its renewable energy and low-carbon initiatives, including investment into hydrogen, carbon capture & storage (CCS) and power generation from wind/solar, positioning Shell as a hybrid of conventional oil major and energy-transition player.

Investor Appeal:

Shell plc offers investors a broad exposure to the integrated oil major segment with a diversified asset base, moderate dividend yield (~3.9 %), and a growth-oriented stance in energy transition.

Its large scale, global footprint, and mix of upstream, downstream and renewables operations make it a compelling option for those seeking both conventional oil exposure and a hedge toward cleaner energy.

 

TotalEnergies SE (NYSE: TTE)

Current Price (28 October 2025): $62.37

TotalEnergies SE operates as a global integrated energy company with activities spanning upstream oil & gas exploration and production, integrated gas & LNG, refining & chemicals, marketing & services, and a growing renewables & power segment.

The company’s diversified operations combine conventional hydrocarbons with an increasing emphasis on transition-energy opportunities.

Key Details:

• Market Cap: $135.98 billion

• P/E Ratio: 11.31

• Dividend Yield: 5.8%

• 52-Week Range: $52.78 – ~$65.76

• Risk Rating: 2 – Stable with balanced fossil fuel & energy transition profile

Recent Developments:

• TotalEnergies announced plans to cut its annual capital expenditures by about $1 billion to target ~$16 billion in 2026, while maintaining a focus on high-margin upstream projects and allocating ~$3–4 billion per year toward low-carbon investments.

• The company acquired German renewables developer VSB Group for ~$1.65 billion, adding ~18 GW of wind/solar/battery pipeline capacity and accelerating its renewables-growth ambitions.

• TotalEnergies revised its production growth target to ~3% annually through 2030, raised its dividend guidance and emphasized returning ~45% of cash flow to shareholders.

Investor Appeal:

TotalEnergies offers investors a blend of scale, asset diversification and yield. With a moderate valuation (P/E ~10×), attractive dividend (~5.8%) and exposure to both traditional oil & gas and transition-energy sectors, it may appeal to those looking for global integrated energy exposure.

The company’s upstream growth ambitions and low-carbon investments strengthen its long-term profile. However, investors should weigh risks such as commodity-price fluctuations, regulatory and geopolitical factors, and the complexity of balancing fossil-fuel operations with clean-energy transitions.

 

BP p.l.c. (Ticker: BP)

Current Price (28 October 2025): $34.77

BP operates as a global integrated oil & gas company undertaking upstream exploration & production, refining & marketing, and increasingly pivoting in its energy-transition strategy. Its operations span more than 60 countries and its asset base includes significant upstream liquids production, natural gas, and downstream/refining presence.

Key Details:

• Market Cap: $89.65 billion

• P/E Ratio: 168.51

• Dividend Yield: 5.58%

• 52-Week Range: $25.22 – $35.88

• Risk Rating: 3 – Moderate risk (strategic reset, regulatory & transition uncertainties)

Recent Developments:

• BP announced a strategic reset in early 2025, targeting increased oil & gas production (2.3–2.5 million barrels/day) while reducing investment in lower-carbon transition projects from ~$5 billion/year to ~$1.5–2 billion/year.

• The company flagged that its value was lagging major peers and considered potential partitioning or asset­divestment strategies to unlock value.

• CEO remuneration was cut by ~30% for FY2024 after missing key profit/cash flow targets, reflecting the company’s operational and strategic challenges.

Investor Appeal:

For investors seeking exposure to a major integrated energy company with a relatively high dividend yield (~5.6-6 %), BP offers a mix of oil & gas production and downstream/refining businesses. Its valuation appears attractive based on the P/E and yield.

However, the strategic reset, with increased fossil investment and reduced low-carbon spending, raises questions about its transition risk and long-term positioning. Commodity-price volatility, regulatory/geopolitical risks, and execution of its new strategy are important considerations.

 

Canadian Natural Resources Limited (TSX: CNQ.TO)

Current Price (28 October 2025): $44.11

Canadian Natural Resources (CNRL) operates as one of Canada's leading oil and natural gas producers through its diverse operations which include oil sands and heavy crude and light oil and natural gas and offshore production.

The company maintains its main operations in Western Canada while operating assets in the North Sea and offshore Africa. CNQ stands as a prominent Canadian oil stock company because of its operational excellence and enduring reserves and successful shareholder dividend payments.

Key Details:

• Market Cap: $91.88 billion

• P/E Ratio: 11.62

• Dividend Yield: 5.33%

• 52-Week Range: $25.84 – $38.61

• Risk Rating: 2 – Stable (strong reserves, reliable dividends, Canadian jurisdiction)

Recent Developments:

• The company achieved a 4% increase in oil production during Q1 2025 because of rising oil sands and thermal operations.

• The company generated CAD 3.1 billion in net income during Q1 2025 because of favorable commodity prices and effective cost management.

• The company increased its spending on carbon capture and emissions reduction programs.

• The company maintained its dividend growth pattern while using share repurchases to execute its capital return plan.

Investor Appeal:

Canadian Natural Resources stands out among oil stocks for its balanced asset mix, low-cost production, and commitment to returning capital to shareholders.

Its strong free cash flow, reliable dividends, and long-life assets provide both income and stability. For investors seeking exposure to a top-tier Canadian energy producer with solid fundamentals and long-term growth potential, CNQ remains a compelling choice.

 

ConocoPhillips (NYSE: COP)

Current Price (28 October 2025): $88.69

The world's largest independent exploration and production (E&P) company ConocoPhillips operates globally to extract crude oil and natural gas and natural gas liquids.

The company operates in North America, Europe, Asia and Australia with a strong shale presence in the Permian Basin and a disciplined capital strategy.

As a core name in U.S. oil stocks, ConocoPhillips delivers solid production growth while maintaining a strong focus on shareholder returns.

Key Details:

• Market Cap: $110.77 billion

• P/E Ratio: 11.89

• Dividend Yield: 3.52%

• 52-Week Range: $79.88 - $116.08

• Risk Rating: 2 – Stable growth (independent E&P, shale exposure)

Recent Developments:

• The company achieved a 5% increase in total production during Q1 2025 because of U.S. shale operations expansion.

• The company generated $3.7 billion in net income during Q1 2025 because of increased production levels and successful price realization.

• The company strengthened its Permian Basin operations through targeted land purchases.

• The company made additional investments in low-carbon projects which include carbon capture and hydrogen initiatives.

Investor Appeal:

Investors who want a combination of growth and cash flow and income should consider ConocoPhillips as their top oil stock choice.

The company's commitment to low-cost assets and capital discipline and shareholder returns through dividends and buybacks creates a resilient energy investment opportunity.

The company's expanding low-carbon solutions business and worldwide operations make COP a reliable investment option in the changing energy sector.

 

EOG Resources, Inc. (NYSE: EOG)

Current Price (28 October 2025): $106.78

The independent oil and gas producer EOG Resources leads the industry through its exploration and development and production of crude oil and natural gas. The company operates its business primarily in the United States while maintaining international assets.

EOG stands out in the oil stocks sector through its efficient drilling methods and strong operational execution which positions the company for high-return project exposure in upstream energy production.

Key Details:

• Market Cap: $58.30 billion

• P/E Ratio: 9.82

• Dividend Yield: 3.82%

• 52-Week Range: $102.52 - $138.18

• Risk Rating: 3 – Moderate (shale focus, cyclical profitability)

Recent Developments:

• The company achieved a 5% increase in production volumes during Q1 2025 through operational efficiency improvements and new well completion projects.

• The company made strategic investments in low-cost drilling projects to maintain long-term growth.

• The company achieved robust financial performance during Q1 2025 by reporting $1.2 billion in net income.

• The company acquired key shale assets through acquisitions to enhance its reserve base.

Investor Appeal:

Investors who want to invest in oil stocks with growth potential and operational excellence should consider EOG Resources.

The company delivers consistent returns and dividend payments through its efficient production and disciplined capital spending and steady cash flow.

EOG provides investors with a balanced investment opportunity through its solid financial position and profitable project selection which combines growth potential with dividend payments.

 

Suncor Energy Inc. (TSX: SU.TO)

Current Price (28 October 2025): $56.07

Suncor Energy operates as Canada's largest integrated energy company which manages oil sands production alongside refining and fuel retail operations.

The company operates as a major force in North American oil stocks through its dependable upstream operations and broad downstream network.

Suncor maintains solid shareholder returns through its ongoing sustainability investments and emissions reduction efforts.

Key Details:

• Market Cap: $67.89 billion

• P/E Ratio: 12.04

• Dividend Yield: 4.07%

• 52-Week Range: $32.26 – $43.34

• Risk Rating: 2 – Stable (integrated oil sands, reliable dividends)

Recent Developments:

• The oil sands production increased by 3.8% in Q1 2025 because of better operational reliability.

• The company reported CAD 2.3 billion in net income during Q1 2025 because of higher production levels and better refining margins.

• The company announced new investments in renewable fuels and carbon capture projects.

• The company maintained its share buyback program to boost shareholder value.

Investor Appeal:

Investors who want to access Canadian oil stocks through Suncor Energy can rely on the company's balanced production and cash flow operations between upstream and downstream activities.

The company attracts investors who seek income and value through its high dividend payments and stable earnings and dedication to long-term sustainability.

The integrated business model of Suncor together with its capital discipline approach enables the company to maintain stability across different oil price scenarios.

 

Saudi Aramco (Tadawul: 2222.SR)

Current Price (28 October 2025): $26.02

Saudi Aramco operates as the world's leading oil producer and ranks among the most profitable multinational corporations worldwide.

The company controls a vital position in worldwide oil markets because of its extensive reserves and affordable production costs and its essential role in Saudi Arabia's economic structure.

The state-owned energy company controls most upstream oil production while it continues to develop its operations in refining and chemicals and renewable energy sectors. The company stands as a fundamental element in worldwide oil stock markets.

Key Details:

• Market Cap: $1.548 trillion

• P/E Ratio: 17.23

• Dividend Yield: 5.66%

• 52-Week Range: $23.04 – $29.00

• Risk Rating: 1 – Most Stable (scale, state backing, ultra-low costs)

Recent Developments:

• The company maintained its production levels at more than 10 million barrels per day throughout Q1 2025.

• The company generated $31.4 billion in net income during Q1 2025 because of high oil prices and strong market demand.

• The company expanded its downstream operations through new refining and petrochemical joint ventures.

• The company maintained its investment in carbon capture and hydrogen technologies to support Saudi Arabia's Vision 2030 strategy.

Investor Appeal:

The global oil stocks sector benefits from Saudi Aramco through its massive scale and consistent profitability and strategic importance.

The company provides investors with a defensive energy play through its stable dividend payments and government support and ultra-low-cost production capabilities.

Saudi Aramco stands out as a top oil producer with robust cash flow and energy transition plans which makes it an attractive investment for those who need oil security in today's world.

 

Equinor ASA (NYSE: EQNR)

Current Price (28 October 2025): $24.36

Equinor ASA operates as a major Norwegian energy company which manages operations worldwide for oil and gas and renewable energy. Equinor operates as a leading offshore oil and gas company under its former name Statoil in the North Sea region.

The company has expanded its investments in wind power and hydrogen and carbon capture technologies during recent years which positions it as a combination of conventional and forward-thinking energy solutions. Investors who want to diversify their energy exposure should consider Equinor because of its strong position in the oil stocks sector.

Key Details:

• Market Cap: $61.35 billion

• P/E Ratio: 8.3

• Dividend Yield: 5.93%

• 52-Week Range: $21.41 - $28.27

• Risk Rating: 2 – Stable (Norwegian governance, oil + renewables strategy)

Recent Developments:

• The company maintained its Q1 2025 oil and gas production levels through successful North Sea operations.

• The company generated $2.6 billion in net income during Q1 2025 because of high energy prices.

• The company progressed its UK and U.S. offshore wind projects as part of its renewable energy growth strategy.

• The company established new carbon capture and storage (CCS) agreements with European industrial partners.

Investor Appeal:

Equinor stands out as a leading global oil stock because it delivers reliable oil and gas production alongside its dedication to energy transition.

The company attracts investors who want both dividend income and long-term growth through its expanding renewable energy business and stable dividend payments and disciplined capital management.

Equinor maintains a strong position in the evolving global energy market through its dual strategy of fossil fuel and clean energy development.

 

PetroChina Company Limited (NYSE: PTR)

Current Price (28 October 2025): $1.0300

PetroChina operates as the publicly traded subsidiary of China National Petroleum Corporation (CNPC) while maintaining its position as one of Asia's largest integrated oil and gas companies.

Through its extensive operations that include upstream production and refining and petrochemicals and natural gas infrastructure PetroChina serves as a vital component of China's energy supply and security framework.

The company functions as a major global oil stock participant while providing investors access to conventional and developing clean energy investments within China.

Key Details:

• Market Cap: $231.30 billion

• P/E Ratio: 8.58

• Dividend Yield: 6.79%

• 52-Week Range: $0.5900 - $1.0000

• Risk Rating: 4 – Speculative (China regulatory/political exposure, FX risk)

Recent Developments:

• The first quarter of 2025 saw domestic oil and gas production rise because China needed more energy.

• The company generated $6.5 billion in net income during Q1 2025 because of its strong downstream margins.

• The company built additional LNG and pipeline infrastructure to fulfill its national energy transition objectives.

• The company maintained its commitment to low-carbon technology development through investments in hydrogen and solar energy systems.

Investor Appeal:

Investors who choose PetroChina can receive substantial dividend payments while gaining access to one of the world's biggest and quickest expanding energy markets.

The company stands out in the oil stocks sector because of its integrated business model and strong government support and consistent profitability.

The company's large size and strategic position create long-term value potential for income and emerging market investors despite existing currency and regulatory risks.

 

Occidental Petroleum Corp. (NYSE: OXY)

Current Price (28 October 2025): $42.30

Occidental Petroleum operates as a leading integrated oil and gas corporation which conducts exploration and production activities and midstream operations mainly in the United States and the Middle East and Latin America.

The company maintains its position as a leading shale oil producer while advancing carbon management strategies which makes it a vital component of the oil stocks sector through its combination of conventional energy operations with sustainable practices.

Key Details:

• Market Cap: $41.64 billion

• P/E Ratio: 13.91

• Dividend Yield: 2.27%

• 52-Week Range: $34.78 - $58.47

• Risk Rating: 3 – Moderate (shale reliance, high debt, carbon capture bets)

Recent Developments:

• The company achieved a 6% increase in oil production during Q1 2025 through its expanded shale operations.

• The company implemented advanced carbon capture and storage projects to achieve its sustainability targets.

• The company achieved $1.5 billion in net income during Q1 2025 because of its enhanced operational efficiency.

• The company finished acquiring strategic assets to build up its U.S. operations.

Investor Appeal:

The oil stocks sector offers investors growth opportunities together with income potential through Occidental Petroleum.

The company's production growth combined with its emission reduction initiatives and attractive dividend payments make it an attractive investment opportunity for those who want to invest in conventional oil assets and energy transition projects.

The mid-cap oil sector benefits from OXY's strong valuation and improving cash flows which makes it a resilient investment option.

 

Pioneer Natural Resources Company (NYSE: PXD)

Current Price (28 October 2025): $269.62

Pioneer Natural Resources operates as a U.S. upstream oil and gas exploration and production company with a strong focus on the Permian Basin. The company develops oil, natural gas liquids (NGLs), and gas assets through drilling and production enhancement, maintaining its position as one of the leading shale oil producers in North America.

Key Details:

• Market Cap: $63.00 billion

• P/E Ratio: 13.32

• Dividend Yield: 1.85%

• 52-Week Range: $196.74 – $278.83

• Risk Rating: 2 – Stable (Permian leader, ExxonMobil acquisition boosts stability)

Recent Developments:

• The company expanded its production capabilities in the Permian Basin, reinforcing its role as a top U.S. shale producer.

• The company advanced its sustainability profile through wind and solar power purchase agreements to support operations in Texas.

• The company reported strong annual net income of $4.9 billion, supported by operational efficiency and favorable commodity prices.

• The company was acquired by ExxonMobil in 2024 in a $60 billion all-stock deal, which reshaped its future strategic direction.

Investor Appeal:

The oil stocks sector provides investors exposure to robust U.S. shale oil growth through Pioneer Natural Resources.

The company’s strong position in the Permian Basin, consistent earnings, and moderate dividend yield make it appealing for long-term investors.

While its sustainability initiatives strengthen its environmental profile, the ExxonMobil acquisition introduces structural changes that could enhance scale and shareholder returns.

 

Devon Energy Corp. (NYSE: DVN)

Current Price (28 October 2025): $ 32.93

Devon Energy operates as a U.S. upstream oil & gas exploration and production company with a diversified multi-basin portfolio (including the Delaware Basin, Eagle Ford Basin, and Powder River Basin) and is focused on generating free cash flow, returning capital to shareholders, and maintaining financial strength.

Key Details:

• Market Cap:  $20.90 billion

• P/E Ratio: 7.49

• Dividend Yield: 2.85%

• 52-Week Range: $25.89 – $40.54

• Risk Rating: 3 – Moderate (shale focus, higher exposure to price cycles)

Recent Developments:

• In Q1 2025 the company delivered net earnings of $494 million (or $0.77 per diluted share) and core earnings of $779 million (or $1.21 per diluted share).

• Q1 operating cash flow reached $1.9 billion, and free cash flow was ~$1.0 billion. The company also strengthened its liquidity with cash balances of ~$1.2 billion and net debt-to-EBITDAX at ~1x.

• The company updated its full-year 2025 outlook: oil production forecast raised to 382,000-388,000 barrels per day and total production to 810,000-828,000 BOE/day; capital spending reduced to ~$3.7-3.9 billion.

Investor Appeal:

For investors seeking exposure to U.S. upstream oil production with potential income and cash-flow characteristics, Devon Energy offers a compelling profile. Its strong free cash flow generation and disciplined capital strategy are attractive in the current energy-sector environment.

The relatively low valuation (forward P/E ~8-9x) and moderate dividend yield support an income-oriented view, while the operational upside in multi-basin assets offers growth potential.

 

Hess Corporation (NYSE: HES)

Current Price (28 October 2025): $148.97

Hess Corporation operates as a global energy company engaged in the exploration for and production of crude oil and natural gas, with major operations in the United States, Guyana (Stabroek Block), and Southeast Asia.

The company combines upstream E&P with a modest refining/midstream footprint, positioning it at the intersection of conventional hydrocarbon production and high-impact offshore developments.

Key Details:

• Market Cap:  $46.07 billion

• P/E Ratio: 17.88

• Dividend Yield: 1.25%

• 52-Week Range: $123.79 – $161.69

• Risk Rating: 3 – Moderate (Guyana assets = high growth but geopolitical & merger uncertainty)

Recent Developments:

• The company reported its Q1 2025 average realized crude oil selling price at US $71.22 per barrel, down from US $80.06 in the prior year quarter.

• A regulatory-and-merger overhang remains: Hess is involved in arbitration and review related to its proposed acquisition by Chevron Corporation, particularly around its stake in the Guyana Stabroek Block.

• The company declared a quarterly dividend of US $0.50/share for the June 30, 2025 payment date (record date June 16, 2025).

Investor Appeal:

For investors looking to gain exposure to offshore production growth and high-quality upstream assets, Hess Corporation offers a compelling profile. Its large-scale Guyana offshore position and diversified geographic footprint set it apart.

The modest dividend yield and moderate valuation also provide some income tilt and value appeal.

 

Schlumberger Limited (NYSE: SLB)

Current Price (28 October 2025): $36.16

Schlumberger operates as a global oilfield services and technology company, providing drilling, evaluation, production and intervention services to the upstream oil & gas industry worldwide. It is a key player in the oil-stocks sector through its support of major E&P operations and its push into digital and integrated service solutions.

Key Details:

• Market Cap: $54.02 billion

• P/E Ratio: 12.91

• Dividend Yield: 3.15%

• 52-Week Range: $31.11 – $44.97

• Risk Rating: 3 – Moderate (oilfield service cyclicality, tech leadership balances risk)

Recent Developments:

• Schlumberger reported strong Q4 2024 / early 2025 results: adjusted EPS of $0.92, beating expectations, with revenue of ~$9.28 billion.

• The company increased its quarterly dividend by ~3.6% and initiated an accelerated share-repurchase program of ~$2.3 billion, targeting ~$4 billion in shareholder returns for the year.

• SLB emphasised growth in its digital & AI-enabled service segments, pointing to strong international demand and positioning itself as a technology-forward oil-services provider.

Investor Appeal:

Investors seeking exposure to the oil-services segment may find Schlumberger appealing due to its leadership in drilling and production support services, its moderate valuation (P/E ~14x), and its dividend yield above 3%.

The company’s increasing focus on digital, AI and integrated services offers a growth angle beyond traditional oil-services exposure.

 

Halliburton Company (NYSE: HAL)

Current Price (28 October 2025):  $26.80

Halliburton operates as one of the leading global oilfield services companies, providing drilling, evaluation, completion and production-services across upstream oil & gas operations worldwide.

Its business spans North America land & offshore, as well as international markets; the company is also investing in automated, digital and low-emission service technologies to support evolving energy-industry needs.

Key Details:

• Market Cap: $22.85 billion

• P/E Ratio: 17.73

• Dividend Yield: 2.54%

• 52-Week Range: $18.72 – $32.57

• Risk Rating: 4 – Higher risk (oilfield service exposure, cyclical revenues)

Recent Developments:

• Halliburton reported an adjusted profit of $0.58 per share in Q3 2025, beating estimates, largely supported by strengthened North American land drilling services.

• The company flagged mid-single-digit revenue decline internationally for 2025, due to reduced activity in some regions such as Saudi Arabia and Mexico.

• Earlier in 2025, Halliburton reported that first-quarter net income dropped to $204 million (or $0.24/share) from $606 million a year earlier, citing macro-energy pressures and tariff risks, although adjusted profitability met expectations.

Investor Appeal:

Halliburton offers investors exposure to the oil-services sector with global scale, technological investment and participation in upstream activity without being a direct commodity producer. Its earnings beat in Q3 2025 and North American strength underscore its service leadership.

However, the business is subject to cyclicality (upstream capex, rig counts, oilfield spending) and regional/geopolitical risk (international activity declines).

 

Baker Hughes Company (NYSE: BKR)

Current Price (28 October 2025): $46.60

Baker Hughes Company operates as a global energy technology and services company, supplying oil-field services & equipment (OFSE) and industrial & energy-technology (IET) solutions across upstream oil & gas, LNG, and power/industrial sectors.

Key Details:

• Market Cap: $45.95 billion

• P/E Ratio: 16.06

• Dividend Yield: 1.97%

• 52-Week Range: $33.62 – $50.92

• Risk Rating: 3 – Moderate (diversified energy tech, but tied to global drilling cycles)

Recent Developments:

• Baker Hughes reported first-quarter 2025 orders of $6.5 billion (including $3.2 billion of IET orders) and attributed net income of $402 million, with adjusted EBITDA up ~10 % year-on-year.

• The company has a backlog (RPO) of ~ $33.2 billion, underscoring strength in its IET business.

• CEO commentary (Oct 2025) pointed to resilience driven by AI and industrial growth, though upstream oil-spending is expected to decline globally in 2025.

Investor Appeal:

For investors looking to gain exposure to the oil-services and energy-tech segment, Baker Hughes offers a diversified mix of traditional oil-field services plus growth in industrial & energy technology, LNG and digital solutions.

The valuation (P/E ~16×) is moderate relative to many upstream producers, and the modest dividend yield provides some income upside. The large backlog and service-tech exposure present potential growth paths beyond commodity-price swings.

 

Enbridge Inc. (NYSE: ENB)

Current Price (28 October 2025): $47.27

Enbridge operates as a major North American energy infrastructure company, with a network of oil-liquids pipelines, natural-gas transmission and distribution systems, and a growing portfolio of renewable-power-generation assets.

Key Details:

• Market Cap: $102.83 billion

• P/E Ratio: 23.21

• Dividend Yield: 5.77%

• 52-Week Range: $39.73 - $50.54

• Risk Rating: 1 – Most Stable (regulated midstream, high dividends, defensive profile)

Recent Developments:

• Enbridge announced a 3.0% increase to its quarterly dividend in December 2024, boosting the annual dividend to ~C$3.77/share.

• The company continues to pursue its net-zero emissions goal by 2050, while investing in renewable energy infrastructure (onshore wind, solar, geothermal) alongside its core pipeline business.

• It completed the acquisition of three natural-gas utility companies from Dominion Energy in 2023 for ~$14 billion, significantly expanding its U.S. utility footprint.

Investor Appeal:

For investors seeking exposure to the energy sector with a focus on stable income and infrastructure-style cash flows, Enbridge offers a compelling profile. With its large-scale, regulated midstream and utility assets, generous dividend yield (~5-6%), and expansion into renewables, the company combines defensive characteristics with growth potential.

However, investors should consider risks such as regulatory/regime changes in pipelines, commodity-transport exposure, and currency/hedge effects given its Canadian domicile.

 

Oil Market Outlook: 2025–2030 Price & Demand Trends

The oil industry operates in a challenging period where it must maintain energy security and shareholder returns while pursuing decarbonization objectives.

 

Dividend Growth & Buybacks

Shareholder returns remain a key focus. Major oil firms are maintaining or growing dividends and using record cash flows to buy back shares. This makes oil stocks especially attractive for income-focused investors during periods of inflation or market uncertainty.

 

M&A & Production Expansion

The sector remains consolidated through deals between Chevron and Hess and Exxon and Pioneer which increase operational scale and access to strategic reserves. Offshore and deepwater investments are also ramping up as companies seek long-term output stability.

 

Energy Transition Investments

Big oil is actively investing in low-carbon technologies. ExxonMobil, BP, and TotalEnergies are directing capital into carbon capture, green hydrogen, offshore wind, and biofuels, offering investors exposure to both fossil fuels and future-ready energy solutions.

 

Key Risks for Oil Stock Investors

Investors should approach oil stocks with caution because the sector presents distinct challenges that need careful evaluation.

 

Price Volatility

The price of oil experiences sudden changes because of geopolitical tensions and OPEC+ production decisions and global economic growth and unexpected supply disruptions.

 

Regulatory & ESG Pressures

The worldwide government is implementing stricter environmental regulations which will increase compliance costs and provide incentives for cleaner energy production thus affecting oil companies' operational activities and profitability.

 

Capital Intensity & Debt

The initial costs of exploration and production require substantial funding which must be maintained through continuous capital investments to maintain production output. Financial strain occurs during downturns when poor capital management or increasing debt levels affect the company.

 

Geopolitical Risk

The majority of oil reserves exist in areas that are politically volatile. Political instability together with conflicts and sanctions disrupts production and supply chains which causes price shocks in the market.

 

Building a Balanced Oil Stock Portfolio

• Diversify across sub-sectors: Invest in major integrated companies together with specific E&P and oilfield service stocks to achieve both income stability and growth potential.

• Geographic diversification: Invest your money across multiple regions which include North America and the Middle East and Russia and emerging markets to reduce local risks.

• Consider ETFs: Investors should use energy-focused ETFs such as XLE, VDE or international options for broad, low-cost exposure.

• Monitor macro trends: Stay updated on OPEC+ policies, U.S. shale output, electric vehicle adoption, and global demand forecasts to anticipate price movements.

• Balance income and growth: A forward-looking portfolio should include high-dividend stocks together with companies that invest in the energy transition.

 

Oil ETFs for Diversified Exposure

Not all investors want to choose individual oil stocks, especially given the sector’s inherent volatility and cyclical nature. For those seeking broad exposure, oil exchange-traded funds (ETFs) provide a convenient way to diversify across multiple companies within the energy industry.

These funds pool together shares of leading integrated majors, exploration and production companies, and oilfield service providers, offering investors exposure to the entire energy value chain.

 

Advantages of Oil ETFs

• Diversification: Instead of being tied to the performance of a single company, investors gain exposure to a basket of oil and energy firms across geographies and business models.

• Income Opportunities: Many oil ETFs include dividend-paying stocks, which can provide a steady income stream alongside potential capital appreciation.

• Liquidity & Accessibility: ETFs trade on major exchanges like regular stocks, allowing investors to buy and sell throughout the trading day.

• Lower Risk vs. Single Stocks: By holding a portfolio of oil companies, ETFs mitigate risks tied to company-specific operational or geopolitical challenges.

 

Popular Oil ETFs to Consider

• Energy Select Sector SPDR Fund (XLE): Tracks large U.S. energy companies including ExxonMobil, Chevron, and ConocoPhillips.

• Vanguard Energy ETF (VDE): Offers diversified exposure to U.S. energy stocks with lower expense ratios.

• iShares U.S. Energy ETF (IYE): Focuses on large and mid-cap U.S. oil and gas firms.

• SPDR S&P Oil & Gas Exploration & Production ETF (XOP): Concentrates on upstream E&P companies, ideal for investors seeking higher growth and volatility exposure.

• iShares Global Energy ETF (IXC): Provides global diversification, holding both U.S. majors and international giants such as BP, Shell, and TotalEnergies.

 

Conclusion: Strategic Oil Stock Allocation

The global energy sector depends on oil stocks because they provide investors with stable dividend payments and protection against inflation together with periodic market gains.

The energy transition creates uncertainty but oil will maintain its essential position in worldwide energy supply throughout 2030 and into the future.

Investors who select their assets wisely and spread their investments across different sectors can benefit from both established oil revenue streams and new clean energy prospects which will drive their portfolios toward income generation and expansion in the evolving energy sector.