Best Oil Stocks to Buy in Today's Energy Market

When commodity prices spike globally, most stock portfolios suffer significant losses. But there’s a smart way to hedge that risk: holding shares in leading energy producers. As the world navigates shifting energy demands—from traditional oil and gas needs to powering the emerging AI data center revolution—two oil stocks stand out as compelling opportunities for investors. Both happen to be backed by one of the world’s most successful investors: Berkshire Hathaway.

Energy sector investments are often overlooked in favor of flashier growth stories. Yet when geopolitical tensions or supply disruptions push oil prices higher, energy companies reward shareholders substantially. The real question isn’t whether to own energy stocks, but which ones offer the most upside potential.

Chevron: The Global Oil Producer Expanding Its Reach

Among the world’s largest crude oil producers, Chevron (NYSE: CVX) continues to cement its position through strategic acquisitions and global expansion. The company recently acquired Hess, gaining valuable production assets in Guyana—a region becoming increasingly important to global oil supply. Simultaneously, Chevron is pursuing exploration opportunities across multiple continents, including Libya and Greece, while maintaining strong domestic operations in the United States.

The scale of this ambition is reflected in capital spending plans. For 2026, Chevron has allocated $18 billion to $19 billion in capital expenditures to support these initiatives. The payoff? The company now produces approximately 4 million barrels of oil equivalent per day—representing roughly 4% of total global oil production. This massive output means Chevron captures significant upside whenever oil and natural gas prices rise.

Current earnings reflect a sobering reality: oil prices have retreated significantly from their 2022 peak above $100 per barrel, now trading around $65. This decline has compressed Chevron’s annual net income to $12.5 billion—still substantial, but well below the $30 billion peak reached during 2022’s energy crisis. For investors seeking the best oil stocks to buy, the implication is clear: if energy prices recover, Chevron’s earnings will expand proportionally. The company also returns capital to shareholders via a 3.75% dividend yield.

Occidental Petroleum: Capitalizing on Natural Gas Demand

In the natural gas space, Occidental Petroleum (NYSE: OXY) emerges as a major player—and it’s a favorite of Berkshire Hathaway, which owns over 25% of the company. As a dominant producer in the Permian Basin, Occidental sits at the epicenter of U.S. natural gas production.

What makes this particularly compelling is the trajectory of electricity demand. The AI revolution demands enormous amounts of power to run data centers. Natural gas represents the fastest path to meeting this surge in electricity generation. Companies like Occidental Petroleum are positioned to supply the fuel that powers this technological transformation. Over the coming years, this demand driver could prove transformational for the entire sector.

Currently, natural gas prices are under pressure, which has impacted near-term earnings. Occidental generated just $2.5 billion in net income over the past 12 months—down significantly from its $10 billion-plus peak. But this depressed period may represent opportunity. When natural gas prices eventually spike again due to structural demand from data centers, companies positioned to capture that upside will see earnings expand dramatically. For those building a diversified portfolio, this makes Occidental one of the best oil stocks to consider as a play on energy infrastructure supporting the AI economy.

Building Your Energy Position

The case for owning shares in these leading oil stocks rests on a fundamental principle: energy companies provide natural downside protection when global economic disruptions spike commodity prices. While smaller than Chevron, Occidental still produces under 1.5 million barrels of oil equivalent daily and serves as an excellent complement to broader energy holdings.

Berkshire Hathaway’s substantial stake in both companies signals institutional confidence in their long-term prospects. For investors seeking exposure to best oil stocks that combine production scale, geographic diversification, and exposure to future energy demand trends, these two names merit serious consideration in your portfolio construction strategy.