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.

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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.

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