With the rising oil prices and the booming oil industry in Texas, oil companies are very attractive right now. What should we look for?
There is a lot of consolidation going on in the oil industry. For example, Occidental Petroleum and Chevron are fighting over Anadarko Petroleum. This is happening since the Permian Basin is now the richest oil region in the world
We should understand what are upstream, midstream and downstream of the oil industry.
We should also look at the size of the oil companies. For example,it is harder for the big oil, Exxon Mobil , BP, Chevron, Royal Dutch Shell and ConocoPhillips to continue growing without making new acquisitions.
Of course, we should not forget to look at he fundamentals of the oil companies