Picking the Right Oil Investment Companies

When investing in oil investment companies, there are many different options to choose from based on the type of trading you want. You could choose to invest in one of the six “Big Oil” companies, which include ExxonMobil, BP, and Chevron, if you are looking for steady long-term, low risk investments. You could also invest in a lesser known company that may allow you to make much more significant gains or lose all of your investment if it goes under. The following is a breakdown of a few of the various oil companies that are traded on the stock market and their estimated risk:

ExxonMobil (XOM)

Exxon Mobil has been a strong company for many years. ExxonMobil was formed when Exxon and Mobil, both companies which were created when Standard Oil was disbanded, merged. ExxonMobil is a very safe investment for the long term and has a very strong positive trend since its conception, even during recessions.

Hess Corporation (HES)

Hess Corp. has been a competing oil company since 1919 and, although not nearly as massive as the big oil companies that have a global reach, Hess has found its place on the Fortune 500 list at a lofty #77. Hess has been shown to have a peaky upward trend, and it is speculated that it will recover well from the decline in late 2008. However, because it is smaller than companies like ExxonMobil, it is much more subject to fluxes in the market as well as liabilities that would otherwise leave a larger company’s stock untouched.

British Petroleum (BP)

BP is another big oil company that has a global market that is hard to shake. BP has seen a very rapid upward trend in the last several years, but like many other companies, has seen a hit in stock prices since late 2008. BP has been involved in several incidents that have shown some weaknesses within the company, such as an explosion of one of its facilities in Texas that killed 15 people, but the company has managed to pull through quite strongly and maintain an upward trend.

United States Oil Fund (USO)

United States Oil Fund is not an oil company, but a fund that trades in the stocks of oil companies as well as invests in other areas of the oil market that deal with petroleum based fuels. United States Oil Fund is one of many oil investment companies that will allow the user to become more diversified through the simple means of investing in one stock. This is because United States Oil Fund invests in many different areas within the oil industry, and the stock reflects the net assets, so if one area is weak, it is usually compensated for by a strong run in another area.

Finding good oil investment companies requires much research, just like any other investment. You have to decide what risks are acceptable to take and how long you plan on being invested. In all things investment-related, caution must be exercised before major investments are made. Be sure to consult an expert in the area for the latest advice and condition of the market.