ExxonMobil
ExxonMobil (ticker XOM) is headquartered in Texas in the United States. It is one of the largest oil and gas companies in the world. It was created in 1999 through the merger of Exxon Corporation and Mobil Corporation. At the time, two already large corporations joined together.
ExxonMobil is involved in the exploration, production, refining and distribution of oil and natural gas. The company also produces other petrochemical products. It is known for its global reach and advanced technologies. Its shares are traded, for example, on the New York Stock Exchange (NYSE).
ExxonMobil is one of the largest companies by market capitalisation and regularly appears near the top of the prestigious Fortune 500 list, which means it is one of the five hundred largest companies by annual revenue. It is also one of the world’s largest producers of oil and natural gas. In 2020, it produced an astonishing approximately 2.4 million barrels of oil per day.
Royal Dutch Shell
Royal Dutch Shell (ticker SHEL), most commonly known simply as “Shell”, was founded in 1907 through the merger of Royal Dutch Petroleum Company from the Netherlands and Shell Transport and Trading Company from the United Kingdom. Shell is involved in the production, refining and distribution of oil and natural gas.
In recent years, Shell has also focused on investing in renewable energy sources, including wind and solar power. Shell shares are traded on many major exchanges, including those in London, Amsterdam and New York (NYSE).
Chevron
Chevron (ticker CVX) is one of the leading energy companies. It is headquartered in the US state of California. The company’s history dates back to 1879, when it was founded as Pacific Coast Oil Company. Chevron is traditionally involved in oil production, refining and distribution. In addition, it searches for new oil deposits. Alongside traditional fossil fuels, it also invests in alternative energy.
One interesting fact about Chevron is its important role in the development and use of deepwater oil production. In 2001, Chevron successfully began production at the Tahiti oil field, located in the very deep waters of the Gulf of Mexico. This field is one of the deepest, and therefore one of the most difficult to access, oil fields in the world, with water depth exceeding 1,200 metres and wells extending more than 7,500 metres below the seabed. This success strengthened Chevron’s reputation as a leader in technologically demanding production and exploration of deepwater deposits.
BP (British Petroleum)
BP, originally known as British Petroleum, is headquartered in London and was founded as early as 1909. The company’s original name was Anglo-Persian Oil Company.
BP played a major role in one of the largest oil discoveries of the 20th century. In 1959, it discovered oil fields in Alaska, specifically in Prudhoe Bay, which became the largest oil field in North America. This discovery contributed significantly to the development of oil production in the region and had a fundamental impact on United States energy policy. Prudhoe Bay remains one of the most productive oil fields in the world.
TotalEnergies
TotalEnergies (ticker TTE) is a global energy company headquartered in Paris, founded in 1924 as Compagnie française des pétroles (CFP). TotalEnergies shares are traded on the stock exchanges in Paris, London and New York (NYSE).
TotalEnergies has made a relatively ambitious commitment to the transition to renewable energy and sustainability. In 2020, the company announced that it planned to change its name from Total to TotalEnergies, reflecting its strategy of diversification towards cleaner energy.
The company has committed to investing billions of dollars in the development of renewable sources, such as solar and wind power plants, as well as in technologies for energy storage and reducing carbon emissions. Its goal is to achieve so-called carbon neutrality by 2050, which includes a significant reduction in greenhouse gas emissions from TotalEnergies’ operations and products.
Why invest in oil companies
Investing in oil companies can be attractive for investors for several reasons.
First, oil companies and their profits are relatively stable thanks to constant global demand for oil. Despite the growing focus on renewable energy sources, oil remains a key energy source for industry, transport and the production of plastics. The major global players we have mentioned in this article, such as ExxonMobil and Shell, have established infrastructure networks and many years of industry experience. As a result, they hold an almost privileged position and face relatively limited competition.
Second, oil giants are already able to innovate and respond to new trends. In recent years, oil companies have often diversified and adapted to new conditions in global markets. By investing in research and the development of new technologies, including renewable sources, they are opening up new revenue streams. Their flexibility and innovative approach may improve their market position over the long term and offer investors attractive opportunities.
In addition, oil companies often offer their investors regular and relatively high dividends. The dividend yield of these companies is often around 5 to 6 per cent. This is not at all common compared with other US shares. These dividends provide investors with stable income, which is especially valuable during periods of market uncertainty. Oil companies therefore offer not only the potential for growth in your investments, but also regular passive income in the form of dividends.
Where to buy oil company shares
You can buy all the shares mentioned in this article through the online brokers eToro and XTB.
Use these brokers if you do not want to pay a fee, for example when buying or selling shares. With XTB, you pay no fees up to a monthly trading volume of 100,000 EUR. Broker eToro also does not charge any fees for buying or selling. If you invest, for example, every month, this is a very cost-effective choice. You also pay no account maintenance fees. In addition, you can follow live prices of any shares within your account at no extra cost.
With eToro and XTB, you have access to both a web platform and, most importantly, a mobile app. You can therefore access your account from anywhere. All you need is an internet connection and your own device, typically a mobile phone or tablet.
If you are new to eToro or XTB, you can complete registration from the comfort of your home. These days, you no longer need to visit a physical branch, as is often the case with investment brokers at many banks. You will find all the necessary registration instructions on the relevant broker’s website or within the app.