Oil Stocks: Because Adulting Requires Ballast

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Let’s be real. Energy stocks are the beige cardigan of the investment world. Everyone pretends to be over them, but secretly, when things get weird – and let’s face it, things are always weird – you’re glad someone’s still pumping oil. They’re about as exciting as watching paint dry, especially when everyone’s chasing the next AI unicorn. But here’s a shocker: sometimes, boring pays. Especially when the robots start demanding all the electricity.

The thing about oil is, when it gets expensive, it’s usually because something’s gone sideways globally. Which, as a general rule, is bad for most investments. Unless you’re in the business of, you know, extracting the thing everyone needs when the world is panicking. It’s a natural hedge. A financial adult supervision, if you will. And honestly, who doesn’t need a little of that?

So, let’s talk about two energy behemoths that even Warren Buffett seems to like. Because if a billionaire octogenarian is piling into something, it’s probably worth a glance. Even if it smells faintly of dinosaurs and regret.

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Chevron: Still Here, Still Pumping

Chevron (CVX +1.30%). They’re like the reliable uncle at Thanksgiving. You don’t necessarily want to talk to them for hours, but you’re glad they showed up with the good gravy. They’re expanding, buying up companies like Hess (which has some land in Guyana, apparently—who knew?), and throwing around billions in capital expenditures. It’s a whole thing.

They’re currently churning out about 4 million barrels of oil a day. That’s 4% of the global supply. Which, when you think about it, is a frankly terrifying amount of fossil fuels. But hey, let’s not dwell. If oil prices decide to stage a comeback (and they always do, eventually), Chevron will be right there, printing money. They also have a dividend yield of 3.75%. Which, let’s be honest, is a nice little bribe for putting up with the existential dread of investing in oil.

Oil’s currently hanging around $65 a barrel, a comedown from the $100+ peak during the Ukraine kerfuffle. Chevron’s still making a respectable $12.5 billion a year, though. Predicting oil prices is a fool’s errand, but Chevron seems reasonably well-positioned to reward shareholders if things go their way. Or at least, not completely implode.

Occidental Petroleum: The Data Center’s New Best Friend

Occidental Petroleum (OXY +3.14%). Berkshire Hathaway owns a quarter of this company, which should tell you something. Either Warren Buffett is a genius, or he just really likes a good deal on natural gas. Anyway, Occidental is a big player in the Permian Basin, pumping out natural gas. Which, it turns out, is crucial for powering all those AI data centers everyone’s building. Because apparently, robots need electricity. Who knew?

They’re a smaller producer than Chevron, around 1.5 million barrels of oil equivalent a day. Natural gas prices have been a bit wobbly lately, which could hurt their earnings in the short term. But, long-term, the demand for electricity from data centers is going to explode. And that could drive gas prices back up. It’s a gamble, sure. But it’s a gamble with potentially enormous payouts. And let’s be honest, we’re all just gambling with our retirement funds anyway.

Occidental generated $2.5 billion in net income over the last year, down from over $10 billion at its peak. If natural gas prices spike again, this stock could be a nice addition to your portfolio. It’s a reason why Berkshire Hathaway is so invested. It’s the kind of thing that keeps a billionaire up at night – calculating percentages and quietly enjoying the chaos.

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2026-03-01 23:55