The oil and gas industry has always been a cornerstone of the United States' economy. With the rise of hydraulic fracturing and horizontal drilling, the US has become one of the largest oil producers in the world. In 2018, several oil stocks stood out from the crowd, offering investors a chance to capitalize on the energy sector's growth. This article will highlight the best US oil stocks of 2018 and provide insights into why they were so successful.
Exxon Mobil Corporation (XOM)
Exxon Mobil Corporation, often referred to as simply Exxon, was one of the best-performing oil stocks in 2018. The company, which is based in Irving, Texas, has a long history of producing and selling oil and gas worldwide. Its strong financial position and diversified portfolio made it a top choice for investors.
Why Exxon Mobil Corporation?
- Financial Strength: Exxon Mobil has a solid financial foundation, with a strong balance sheet and a history of paying dividends.
- Diversified Portfolio: The company operates in various segments, including exploration and production, refining, and marketing.
- Global Presence: Exxon Mobil operates in more than 50 countries, giving it a broad geographic footprint.
Chevron Corporation (CVX)
Chevron Corporation, another top-performing oil stock in 2018, is based in San Ramon, California. The company is involved in the exploration, production, and marketing of oil and gas.
Why Chevron Corporation?
- Innovation: Chevron has invested heavily in research and development, leading to several significant discoveries.
- Global Operations: Similar to Exxon Mobil, Chevron has a strong global presence and operates in various countries.
- Resilience: Despite market fluctuations, Chevron has remained a stable investment choice.
Royal Dutch Shell PLC (RDS.A)
Royal Dutch Shell, often referred to as Shell, is an international oil and gas company based in the Netherlands. The company is involved in the exploration, production, and distribution of oil and gas.
Why Royal Dutch Shell PLC?
- Strong Brand: Shell is one of the most recognized brands in the oil and gas industry.
- Innovation: Shell has made significant investments in renewable energy, making it a leader in the transition to cleaner energy sources.
- Financial Stability: Shell has a strong financial position and a history of paying dividends.
Anadarko Petroleum Corporation (APC)
Anadarko Petroleum Corporation, based in The Woodlands, Texas, is an independent oil and gas exploration and production company.
Why Anadarko Petroleum Corporation?
- Growth Potential: Anadarko has a strong presence in the Permian Basin, one of the most prolific oil and gas regions in the US.
- Cost Efficiency: The company has focused on reducing costs, making it more competitive in the industry.
- Strategic Partnerships: Anadarko has formed several strategic partnerships, expanding its reach and capabilities.
ConocoPhillips (COP)
ConocoPhillips, based in Houston, Texas, is an independent exploration and production company.
Why ConocoPhillips?
- Focus on Growth: ConocoPhillips has focused on growing its production and reserves.
- Financial Performance: The company has delivered strong financial performance, with a history of paying dividends.
- Diversification: ConocoPhillips operates in various geographic regions, reducing its exposure to market fluctuations.
In conclusion, the best US oil stocks in 2018 were characterized by their financial strength, diversified portfolios, and global presence. Investors looking to capitalize on the energy sector's growth should consider these companies as potential investment opportunities.