Companies involved in the exploration and production (E&P) of oil, transportation, and storage, and refining and distribution are known as oil companies. Increasing competition, legislative laws amidst rising environmental concerns, and innovation could be a cause of concern for such companies. Though oil companies are going through difficulties in conducting business, there are some companies worth investing in. We bring you a list of the five best oil stocks in 2021. 

ConocoPhillips  
The company is deeply focused on exploration and production (E&P) and is one of the largest in the world.

It has operations in more than 12 countries. A diversified, low-cost portfolio is what adds to this corporation’s wealth. Add to this, the company’s excellent balance sheet, and you have a company that is well-poised to weather the volatility of the oil sector. 

Phillips   66  
A top-tier oil refining company, Phillips 66 operates in the country and Europe. It also has midstream investments, and a marketing and specialties business to produce and distribute refined and specialty products. Phillips 66 invests in profit-improving projects, has vertically integrated its large-scale operations, and focuses on higher-margin products. This makes it a viable low-cost producer. The company also boasts a well-planned balance sheet that will ensure its liquidity, and ensure rich dividends to its shareholders. 

Enbridge
As the entire oil industry heads towards a transition, Enbridge promises a decent investment. While making forays into renewable energy, this company also operates North America’s biggest oil pipeline network. It also has seen success in the natural gas distribution network. 98% of the company’s earnings come through agreements and it has managed to earn a stable income even in the midst of the turbulent Covid-19 affected 2020. The company’s balance sheet is also investment grade, allowing it to make investments aimed at growth and pay regular dividends to its shareholders.  

Chevron Corporation
Despite its business being affected by winter storm Uri, Chevron Corporation showed impressive earnings in Q1 2021. The company was left with $850 million in excess cash after capital expenditures and dividends. It also has raised its dividends and continues to have an impressive balance sheet.

Exxon Mobil Corporation
Exxon had a good first-quarter earnings report, which was partly due to its presence in the chemicals sector and also because it cut costs by roughly a billion in 2020. In recent deals, Exxon also rid itself of inactive assets. Saved costs and profits from asset sales have provided the company a buffer in paying off debt and in maintaining its 6% dividend.