Here Are My Top 3 Oil Stocks Right Now

Given the importance of oil and natural gas to the global economy, every investor should probably have some exposure to the energy sector. I personally own one oil stock, yet I'm not the least bit worried about oil prices. That's notable because the geopolitical conflict in the Middle East has made high oil prices headline-grabbing news.

If all you care about is finding a way to profit from rising oil prices over the short term, you'll probably want to buy a dedicated energy producer like Devon Energy (NYSE: DVN). Notably, its production is unaffected by the Middle East disruptions because it is U.S.-focused. But if you are a long-term investor, you'll want to take a more balanced approach to the energy sector, buying stocks like ExxonMobil (NYSE: XOM), Chevron (NYSE: CVX), and, in my case, TotalEnergies (NYSE: TTE). Here's why these three energy giants are my top oil stocks right now.

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Go integrated or go home

The unifying theme with Exxon, Chevron, and TotalEnergies is that they are all integrated energy companies. This means they have operations across the entire energy value chain. So they produce oil and natural gas in the upstream, like Devon or Diamondback Energy (NASDAQ: FANG). However, unlike an upstream-focused business, an integrated energy company also moves energy in the midstream, via infrastructure assets such as pipelines. And it processes these vital fuels in the downstream segment of the broader industry, in chemical and refining operations.

Exxon, Chevron, and TotalEnergies generate most of their revenue from upstream operations, so their financial results are heavily influenced by oil and gas prices. They are definitely going to provide exposure to rising oil prices. However, the history of the energy sector is very clear. Oil and gas prices rise and fall over time. When the conflict in the Middle East eventually ends, oil prices are likely to decline.

That's going to be a direct hit on companies like Devon and Diamondback, which have only upstream operations. Exxon, Chevron, and TotalEnergies also have midstream and downstream assets that have historically helped soften the impact of the industry's entirely normal energy price swings. For more conservative, long-term-focused investors, integrated energy companies are likely to be a better way to invest in the energy sector.

Exxon and Chevron for most, TotalEnergies for me

For most investors, Exxon and Chevron are probably the best options. These U.S.-based integrated energy giants have proven track records of paying dividends. In fact, despite the highly volatile nature of energy prices, they have each increased dividends annually for decades. And, equally important, they have the lowest debt-to-equity ratios in their peer group. That's a key part of the equation, because Exxon and Chevron can take on leverage during industry downturns so they can continue to support their businesses and dividends until oil prices recover, as they always have historically.

Right now, Chevron probably has a bit of an edge because its dividend yield is 3.7%. Exxon's yield is more than a percentage point lower at 2.6%. That said, the oil stock I chose was TotalEnergies, a French Company. It doesn't have as strong a dividend track record and, like all European oil giants, it carries more debt and more cash. But unlike its integrated peers, TotalEnergies has made an aggressive push into clean energy.

The company's integrated power division, which houses its electricity-focused operations, accounted for roughly 12% of the business in 2025. While oil prices are the headline grabber today, the world is still shifting toward cleaner energy options. In fact, high oil prices may even accelerate that transition. Domestic sources of power, like solar and wind, could help improve energy security for countries that have historically relied on oil and gas from less stable regions.

TotalEnergies' dividend yield is 4.5%, but U.S. investors must pay French taxes and fees on dividends they receive (some of which can be claimed back at tax time). However, if you are like me, looking decades into the future, TotalEnergies' efforts to prepare today for a changed energy landscape may make it the best choice for your portfolio. Notably, European peers BP (NYSE: BP) and Shell (NYSE: SHEL) said they would focus on clean energy, then walked those plans back. Only TotalEnergies has stuck with its efforts to aggressively diversify into clean energy.

Don't get caught up in the excitement

Wall Street has a bad habit of jumping from one hot investment topic to another. Right now, rising oil prices are in the news and attracting investor attention. If you are looking at the energy sector, you should probably take a long-term view that considers both the upside on display today and the downside that will come when energy prices eventually fall. For those who consider the full energy cycle, diversified giants like Exxon, Chevron, and TotalEnergies are likely the best energy options, with TotalEnergies standing out for its exposure to clean energy assets.

Reuben Gregg Brewer has positions in TotalEnergies Se. The Motley Fool has positions in and recommends Chevron. The Motley Fool recommends BP. The Motley Fool has a disclosure policy.