Oil stocks are some of the most liquid assets you can invest in, which makes them a popular option for investors both new and experienced. As with other markets, it’s simply not a good idea to invest blindly in oil and energy companies; some research and information from those informed will help you make an informed investing decision. The oil and gas industry is vast and there are a lot of options to go over, but there are a few oil stocks to invest in 2012 for you to seriously consider above others.
EnCana (ECA) is one energy company to consider, and with one of the largest market caps among Canadian oil companies, it is a promising investment. EnCana is one of North America’s largest oil and gas providers as a whole, but what makes this company such a promising option is their focus on development of resources within the Canadian borders. Specifically, EnCana is retrieving oil from the Christina Lake in Alberta, which is estimated to contain around 1.8 billion barrels of oil in all. This alone makes it one of the most promising oil stocks to invest in 2012.
The Chevron Corporation (CVX) is certainly one of the strongest contenders in the oil companies in the world. Chevron stands as American’s second largest oil company, and is the fourth largest in the world. The third quarter of 2011 saw a 27% increase in revenue over the previous year. Rare in oil companies, Chevron has increased its dividend for 25 years straight. Not only that, but the company has a lower debt/equity balance sheet than its competitors.
Exxon Mobil Corporation (XOM) is another top contender to invest in. Exxon Mobil is privately owned and stands as one of the world’s largest corporations. Privately owned in this sense means that Exxon both produces and sells its oil, which keeps things stable for investors. Over the past ten years, Exxon Mobil has increased its oil and gas production by 120%; in 2010 the company revealed that it had more than twice the amount of oil gas in reserve as it was producing. This alone makes this one of the best oil stocks to invest in 2012 in investing in Exxon Mobil — there simply is not any room for failure.
Yet another option lies in ConocoPhillips (COP). ConocoPhillips is planning to split its refining and marketing sectors from its production sector in the upcoming years. This type of plan mirrors that of Marathon Oil, which did just that earlier this year and came out the better for it. In its current state, ConocoPhillips has grown more than 60% in the past year. This shows sound planning. While some investors are pensive about the company’s split, you can capitalize off of this uncertainty by investing now. With ConocoPhillips’ previous success, the company can be trusted in its split off venture coming next year and stands as some of the most promising oil stocks to invest in 2012.