Investment Opportunities in Energy Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 01 2026
0mins
Should l Buy OXY?
Source: Fool
- Market Sentiment: Energy stocks are currently unloved, particularly viewed as 'dirty' by ESG investors; however, they serve as a natural hedge in portfolios during oil price surges, which often coincide with global economic disruptions.
- Chevron's Expansion Strategy: Chevron (CVX) recently acquired Hess and plans to invest $18 billion to $19 billion in global exploration by 2026, producing 4 million barrels of oil daily, which constitutes about 4% of global output, significantly enhancing its profitability.
- Occidental's Market Position: Occidental Petroleum (OXY) is a major natural gas producer in the Permian Basin, with production below 1.5 million barrels per day; as electricity demand from data centers surges, natural gas prices are expected to rise, potentially boosting its earnings.
- Earnings Volatility: Occidental generated $2.5 billion in net income over the last year, a stark decline from over $10 billion at its peak; while short-term natural gas price drops may hurt profits, long-term demand growth could provide a solid foundation for recovery.
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Analyst Views on OXY
Wall Street analysts forecast OXY stock price to fall
16 Analyst Rating
4 Buy
9 Hold
3 Sell
Hold
Current: 55.020
Low
38.00
Averages
47.27
High
64.00
Current: 55.020
Low
38.00
Averages
47.27
High
64.00
About OXY
Occidental Petroleum Corporation is an international energy company with assets primarily in the United States, the Middle East and North Africa. The Company is an oil and gas producer in the United States, including a producer in the Permian and DJ basins, and the offshore Gulf of Mexico. It operates through three segments: oil and gas, chemical and midstream and marketing. The oil and gas segment explores for, develops, and produces oil (which includes condensate), natural gas liquids (NGL) and natural gas. The chemical segment primarily manufactures and markets basic chemicals and vinyls. The midstream and marketing segment purchases, markets, gathers, processes, transports, and stores oil (which includes condensate), NGL, natural gas, carbon dioxide (CO2) and power. The midstream and marketing segment provides flow assurance and maximizes the value of its oil and gas. It also optimizes its transportation and storage capacity and invests in entities that conduct similar activities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Crude Price Impact: The conflict has led to a significant increase in crude prices over the past week and a half.
- Market Reactions: The fluctuations in oil stocks reflect broader market concerns regarding geopolitical tensions and their economic implications.
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- Investor Sentiment: Investors are hopeful for a swift resolution to the ongoing war in Iran.
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Oil Price Trends: Oil prices are experiencing a sharp decline following significant fluctuations in previous sessions.
Market Sentiment: The drop in prices is influenced by hopes for a de-escalation in the Middle East conflict.
Ongoing Conflict: Despite the optimism, the war involving Iran continues, indicating that the situation remains unstable.
Volatility in Energy Markets: Energy markets are expected to continue facing heightened volatility due to the ongoing geopolitical tensions.
See More
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Statements from Officials: Remarks from the president, defense secretary, and Iranian officials suggest that a swift resolution to the conflict is unlikely.
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