Investing in Oil Wells: The Top Oil and Gas Stocks to Buy

Mike Munno

Posted January 5, 2024

Investing in oil wells is a high-stakes game, but one that can yield significant rewards for the risk-tolerant and well-prepared.  Crude oil, the viscous lifeblood of our modern world, gurgles beneath the earth, waiting to be coaxed and captured. And for some investors, its promise of riches is irresistible. 

But before you plunge your hard-earned money into a drilling frenzy, hold your horses. Investing in oil wells is no child’s play – they’re a high-stakes gamble where fortunes can be struck or sunk. This guide aims to equip you with the knowledge to navigate this volatile terrain.

First things first: Why oil? Sure, the green energy revolution is simmering, but oil dominates our transportation and industrial sectors. Demand, even with hiccups, isn’t drying up anytime soon. Plus, oil prices swing wildly, offering potential windfalls (or gut-wrenching losses).

Investing in Oil Wells

So, you still want to invest in oil and gas stocks? Brace yourself for the nitty-gritty. Investing in oil wells isn’t about buying barrels you can hoard in your garage. You’re buying a stake in the exploration, drilling, and production of this black gold. Think of it like owning a tiny slice of a gold mine, but one buried a mile underground and shrouded in geological uncertainty.

Options for Investing in Oil Wells

  • Direct investment: You pony up cash, join a drilling partnership, or buy shares in an oil company with active wells. You reap the profits (or lick your wounds) based on the well’s output and oil prices.
  • Indirect investment: Feeling less adventurous? Opt for oil-and-gas funds or ETFs. These pool your money with others, spreading the risk (and potential rewards) across various wells and companies.

Now, the elephant in the room: The Risks of Investing in Oil Wells

  • Geology’s a fickle mistress: No guarantee that oil lurks where you drill. Dry wells are a harsh reality, leaving you with nothing but a dusty hole and dashed dreams.
  • Oil prices are a roller coaster: Buckle up tight. Global events, economic tides, and even whispers of alternative energy can send prices plummeting, leaving your investment high and dry.
  • Environmental concerns: Oil extraction isn’t exactly cuddly. From spills to fracking’s ecological footprint, prepare for potential ethical and regulatory hurdles.

But wait, there’s hope! Not all doom and gloom. Here are some tips to minimize the risk:

  • Diversify, diversify, diversify! Don’t put all your eggs in one well (literally). Spread your investments across different companies, regions, and even energy sources.
  • Seek expert guidance: Unless you have a geology degree and oil field boots, consulting a financial advisor specializing in energy is crucial. They’ll navigate the jargon and steer you clear of red flags.
  • Do your homework: Research the companies and partnerships you’re considering. Check their track record, financial health, and environmental practices. Remember, knowledge is power (and potentially profit).

Investing in oil wells is a gamble, yes, but a calculated one. With the right knowledge, a healthy dose of caution, and a touch of luck, you could tap into the black gold beneath the surface and watch your financial wellspring flow. Just remember, this isn’t a get-rich-quick scheme. It’s a long-term game for the risk-tolerant and well-prepared. So, tread carefully, invest wisely, and who knows, you might just strike it rich in the wild world of oil wells.

With that being said, let’s get into some of the direct investment opportunities

Investing in Oil Wells: The Best Oil & Gas Stocks to Buy

Now that we’ve discussed the basics of investing in oil wells, let’s get into the good stuff. The oil and gas stocks that rule the industry. Now, if you’re looking for a more obscure, high-risk/high-reward play, stick around until the end.

Right now, I’m going to cover some more well-known oil and gas stocks in the industry. By gaining exposure to these companies, you’ll be well on your way to investing in oil wells correctly. 

  • Exxon Mobil Corporation (NYSE: XOM) 
  • Devon Energy Corp (NYSE: DVN)
  • Schlumberger Limited (NYSE: SLB)

Exxon Mobil is a very well-known oil and gas stock. And there’s a good reason for that. They’re America’s largest oil company. They have an extremely strong cashflow and diverse global operations. 

XOM is a decent stock for broader exposure to the oil and gas industry, but not particularly for investing in oil wells. If you’re looking for slow and steady growth, XOM is a great choice. If you’re looking to invest in oil wells that may give you a giant payday, there are better options. 

Investing in Oil Wells - XOM Chart

Devon Energy is another US company that is focused on US shale plays. The company also emphasizes strong production growth and attractive dividend payouts. While this is less of investing in oil wells and more of a shale play, it’s still a good investment. 

One con is the company has some relatively high debt levels. They are also limited when it comes to global exposure. 

Investing in Oil Wells - DVN Chart

Perhaps one of your best options for investing in oil wells is Schlumberger Limited (NYSE: SLB) as they have access to various drilling activities. The company is a global leader in OFS (oilfield equipment and services) and has a diverse portfolio. 

Did I mention that Schlumberger has been featured in The Wealth Advisory’s Top 10 series? If you haven’t heard, The Wealth Advisory is a premium investment newsletter from Jason Williams and Jason Simpkins of Wealth Daily. At the beginning of each month, the two Jasons break down their favorite stock picks for the upcoming months. Check out their top 10 stocks to own for January.

Now, back to Schlumberger… 

Investing in Oil Wells - SLB Chart

Hopefully, you’re still with me because I’ve saved the best for last…

[QUIZ] 46 BILLION Barrels of Oil?!

A massive $5.9 trillion oil boom is about to take place. Three tiny companies just acquired the rights to mine an untapped patch holding 46 billion barrels of oil in a mystery location…

And it even has the potential to reach $9 trillion in value if prices reach $200 per barrel!

So which country do you think will lead this upcoming oil surge?

  1. Venezuela
  2. Saudi Arabia
  3. Canada
  4. Russia

Think you know the answer? See if you’re right!

Final Thoughts On Investing in Oil Wells

These three oil and gas stocks are just the tip of the iceberg. Remember, the oil industry is a complex beast. Investing in oil wells isn’t as straightforward as investing in other sectors such as technology.

That’s why we do our best to help guide you with your decisions. We recognize that people can’t spend their entire time scouring over charts, drilling results, and quarterly reports. That’s what we’re for. 

In fact, Angel Publishing’s resident oil expert Keith Kohl has stumbled upon an oil and gas investment like none other. If you’re into investing in oil wells, this is a good place to be. 

The Biggest Oil Breakthrough Since Fracking

The fracking boom created a new wave of American oil and gas millionaires. As many as 2,000 new millionaires were minted every year in North Dakota alone. 

EI Reuters Headline 12

But recently, a small Texas company has debuted a brand-new drilling method that’s poised to make the fracking boom look like child’s play. It’s called the “Horseshoe Well.” 

The Journal of Petroleum Technology says this revolutionary method is “a design unlike anything most have seen in the shale sector before.”

This small company’s breakthrough tech is poised to not only rejuvenate domestic oil production but also stands to radically disrupt the global oil equation. More importantly, it’s set to mint a new generation of oil and gas millionaires in America.

Get the full details on the tech sending shockwaves through the American oil patch. 

Keith Kohl has put together all of the information you need to take advantage of this situation right here. Rather than researching and investing in oil wells by yourself, take the journey with an expert. You won’t regret making Keith’s acquaintance.

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