Oil has slipped in the last couple of weeks but, many speculators believe it may be a great time to add this commodity into the portfolio. The United States Oil Fund (NYSE:USO), which is designed to track the performance of crude oil was worth over $110 a share in the peak of 2008, and after the Great Recession it's stock price has leveled around $35, is it almost time for a bounce back? As one might imagine, many oil companies also may have bounce back potential this year. Here are four great oil stocks worth watching.

Investopedia Broker Guides: Enhance your trading with the tools from today's top online brokers.

Not a Routine Drill
The offshore drilling equipment manufacturer Dril-Quip (NYSE: DRQ) continues to be one of the best plays in the sector, and shares of DRQ have surged over 35% over the past two years. Dril-Quip's stock price currently sits $15 below its 52-week high and is in a good position to make this up over the remainder of 2012.

Also, the mid cap offshore driller Atwood Oceanics (NYSE:ATW) experienced quite the rise, with shares up 46.10% in the last two years. Many believe they could be positioned to head higher.

SEE: A Guide to Investing In Oil Markets

Oil Sands
Conoco Phillips
(NYSE:COP) is making a large bet on the development of various oil sands projects in Canada over the next decade as the company looks to grow production. The company estimates that production from these projects will quadruple by the end of the decade.

Conoco Phillips has approximately one million acres of properties in Alberta with bitumen deposits and has interests in many different oil sands projects as well. The company's goal is to increase production by a 15% compound annual growth rate through 2020, reaching close to 300,000 BOE per day of production by then.

Conoco Phillips values innovation, and uses the steam assisted gravity drainage (SAGD) method of extracting the bitumen from the ground. This involves the injection of steam into the ground, which liquefies the bitumen so it can be pumped to the surface, and processed further. Shares have risen 4.6% in the last two years, and long-term demand of oil suggests that they could be set for an even higher move in the near future.

SEE: Peak Oil: What To Do When The Wells Run Dry

Imperial Oil
Imperial Oil
(NYSE:IMO) is a top performing Canadian oil producer with over 15 billion barrel equivalents of proved and non-proved resource reserves. According to management, "The company has the potential, with plans in place, to more than double Upstream production volumes by 2020". Volumes are targeted to be up even by 2013. IMO is also the only Canadian industrial company to have maintained an AAA bond rating from Standard & Poor's. Shares are up 6.07% so far in the last 2 years.

SEE: 5 Biggest Risks faced By Oil And Gas Companies

The Bottom Line
The price of crude has fallen in the last few weeks but, many believe that it will make a strong come back, and they believe the same for their stock prices.

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

Related Articles
  1. Mutual Funds & ETFs

    Why ETFs Are a Smart Investment Choice for Millennials

    Exchange-traded funds offer an investment alternative to cost-conscious millennials who want to diversify their portfolios with less risk.
  2. Investing

    Asset Manager Ethics: Acting With Competence and Diligence

    Managers must make investment decisions based on their personal investment process, which in turn should be based on solid research and due diligence.
  3. Forex Education

    Understanding The Income Statement

    Learn how to use revenue and expenses, among other factors, to break down and analyze a company.
  4. Stock Analysis

    Will J.C. Penney Come Back in 2016? (JCP)

    J.C. Penney is without a doubt turning itself around, but that doesn't guarantee the stock will respond immediately.
  5. Mutual Funds & ETFs

    Should Investors Take a BITE Out of This New ETF?

    ETF BITE offers a full menu of restaurants. Is now the right time to invest?
  6. Financial Advisors

    5 Things All Financial Advisors Should Know About ETFs

    Discover five things all financial advisors should know about ETFs, including when ETFs may be a better choice for your clients than mutual funds.
  7. Stock Analysis

    The Top 5 ETFs to Track the Nasdaq in 2016

    Check out five ETFs tracking the NASDAQ that investors should consider heading into 2016, including the famous PowerShares QQQ Trust.
  8. Investing

    Time to Bring Active Back into a Portfolio?

    While stocks have rallied since the economic recovery in 2009, many active portfolio managers have struggled to deliver investor returns in excess.
  9. Economics

    Investing Opportunities as Central Banks Diverge

    After the Paris attacks investors are focusing on central bank policy and its potential for divergence: tightened by the Fed while the ECB pursues easing.
  10. Chart Advisor

    Now Could Be The Time To Buy IPOs

    There has been lots of hype around the IPO market lately. We'll take a look at whether now is the time to buy.
  1. Should mutual funds be subject to more regulation?

    Mutual funds, when compared to other types of pooled investments such as hedge funds, have very strict regulations. In fact, ... Read Full Answer >>
  2. Do ETFs pay capital gains?

    Exchange-traded funds (ETFs) can generate capital gains that are transferred to shareholders, typically once a year, triggering ... Read Full Answer >>
  3. How do real estate hedge funds work?

    A hedge fund is a type of investment vehicle and business structure that aggregates capital from multiple investors and invests ... Read Full Answer >>
  4. Are Vanguard ETFs commission-free?

    While some Vanguard exchange-traded funds (ETFs) are available commission-free from third-party brokers, a large portion ... Read Full Answer >>
  5. Do Vanguard ETFs require a minimum investment?

    Vanguard completely waives any U.S. dollar minimum amounts to buy its exchange-traded funds (ETFs), and the minimum ETF investment ... Read Full Answer >>
  6. Can mutual fund expense ratios be negative?

    Mutual fund expense ratios cannot be negative. An expense ratio is the sum total of all fees charged by an asset management ... Read Full Answer >>

You May Also Like

Trading Center