Investing in Oil Wells: Promising Oil and Gas Stocks for 2024

Written By Mike Munno

Updated May 15, 2024

Today we’re going to dip our toes into the world of investing in oil wells, as well as some promising oil and gas stocks on the market. Investing in oil wells poses high stakes, attracting risk-tolerant individuals seeking significant rewards. Crude oil, the essential fuel of our modern world, lies beneath the earth’s surface, awaiting extraction. For certain investors, the allure of potential riches from this black gold is irresistible.

However, before you dive into the drilling frenzy with your hard-earned money, exercise caution. Investing in oil wells is no child’s play; it’s a high-stakes gamble where fortunes can be made or lost. This guide aims to furnish you with the necessary knowledge to navigate this volatile terrain successfully.

Investing in Oil Wells

Firstly, why oil? Despite the simmering green energy revolution, oil continues to dominate the transportation and industrial sectors. Demand, despite occasional hiccups, shows no signs of drying up soon. Moreover, oil prices exhibit wild fluctuations, offering potential windfalls or gut-wrenching losses.

Investing in Oil Wells

If you’re still keen on investing in oil and gas stocks, prepare for the nitty-gritty. This isn’t about hoarding barrels in your garage; it’s about acquiring a stake in the exploration, drilling, and production of black gold. Think of it as owning a slice of a gold mine buried a mile underground, shrouded in geological uncertainty.

Options for Investing in Oil Wells:

  • Direct Investment: Invest cash, join a drilling partnership, or purchase shares in an oil company with active wells. Profits or losses hinge on the well’s output and oil prices.
  • Indirect Investment: Prefer a less adventurous route? Opt for oil-and-gas funds or ETFs, spreading risk and potential rewards across various wells and companies.

The Risks of Investing in Oil Wells

  • Geological Uncertainty: 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 Price Volatility: Brace for a roller coaster. Global events, economic shifts, and alternative energy whispers can send prices plummeting, leaving your investment high and dry.
  • Environmental Concerns: Oil extraction isn’t without challenges. From spills to fracking’s ecological footprint, be prepared for potential ethical and regulatory hurdles.

But fear not; there’s hope amidst the risks. Diversify your investments across different companies, regions, and energy sources. Seek expert guidance from a financial advisor specializing in energy, and diligently research companies and partnerships for a well-informed decision.

Investing in oil wells is a calculated gamble. With the right knowledge, caution, and a bit of luck, you might tap into the black gold beneath the surface, watching your financial wellspring flow. Remember, it’s a long-term game for the risk-tolerant and well-prepared. Tread carefully, invest wisely, and you might just strike it rich in the wild world of oil wells.

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

Now, let’s delve into some direct investment opportunities with well-known oil and gas stocks.

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

Exxon Mobil stands out as a highly recognized player in the oil and gas stock market, and there’s a compelling justification for its prominence. As the largest oil company in America, Exxon Mobil boasts robust cash flow and a wide-ranging global presence.

While XOM serves as a commendable stock for gaining comprehensive exposure to the oil and gas industry, it may not be the optimal choice specifically for investing in oil wells. If your objective is gradual and consistent growth, XOM proves to be an excellent selection.

XOM 5 year Chart - Investing in Oil Wells

However, for those seeking investments in oil wells that have the potential for substantial returns, you may want to explore other options. 

Devon Energy, another prominent U.S. entity, directs its focus towards U.S. shale plays. The company places a significant emphasis on robust production growth and appealing dividend distributions. Although this aligns more with a shale play than a direct investment in oil wells, it remains a sound investment choice.

However, it’s important to note a drawback: Devon Energy carries relatively high levels of debt. Additionally, its global exposure is somewhat restricted, presenting limitations in terms of international reach.

DVN 5 year Chart - Investing in Oil Wells

Consider Schlumberger Limited (NYSE: SLB) among your top choices for investing in oil wells due to its extensive access to various drilling activities. This company stands as a global leader in Oilfield Equipment and Services (OFS), boasting a diversified portfolio.

It’s noteworthy that Schlumberger has earned recognition in the esteemed Wealth Advisory’s Top 10 series. In case you’re not familiar, The Wealth Advisory is a high-tier investment newsletter curated by Jason Williams and Jason Simpkins of Wealth Daily. Every month, the two Jasons unveil their preferred stock picks, offering valuable insights. For January, be sure to explore their top 10 stocks to own.

Now, let’s refocus on the merits of Schlumberger…

SLB 5 year Chart - Investing in Oil Wells

These stocks are just the tip of the iceberg in the complex oil industry. While investing in oil wells requires careful consideration, these well-known companies can provide a solid foundation.

Final Thoughts On Investing in Oil Wells

Remember, the oil industry is intricate, and investing in oil wells differs from other sectors like technology. We understand that navigating charts, drilling results, and quarterly reports can be overwhelming, so we’re here to help.

Angel Publishing’s resident oil expert, Keith Kohl, has uncovered a groundbreaking oil and gas investment. If you’re into investing in oil wells, this is the 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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