3 Energy Stocks Investors Should Invest in Before 2025 is Over

Group 1: Oil Price Outlook - The U.S. Energy Information Administration (EIA) projects the average spot price of West Texas Intermediate crude to decline to $51.42 per barrel in 2026, down from $65.32 per barrel in 2023 and $76.60 per barrel in 2022, due to rising worldwide oil inventory [2] - Low oil prices are expected to benefit the refining industry, as companies can process cheaper raw crude into final products like gasoline and diesel, enhancing refining operations in 2026 [3] Group 2: Operational Efficiency and Cost Management - Advanced drilling techniques such as horizontal drilling and hydraulic fracturing have significantly reduced operational costs in oil and gas, leading to low break-even costs for exploration and production activities, making them potentially profitable despite low oil prices [4] - Demand for oilfield services is anticipated to remain favorable in 2026, benefiting companies that assist upstream operations [4] Group 3: Investment Opportunities - Phillips 66 (PSX) is highlighted as a leading refiner with a crude utilization rate of 99% in the September quarter of 2023, the highest since 2018, and is well-positioned to capitalize on lower oil prices by using Canadian heavy crude [5][6] - Valero Energy Corporation (VLO) operates 15 refineries with a combined capacity of 3.2 million barrels per day and focuses on maximizing profits through efficient refinery utilization and selective investments, also expected to benefit from low input costs [6][7] - Oceaneering International (OII) provides robotic solutions and services to offshore energy companies and is well-positioned to gain from favorable oilfield service demand and growth in its Aerospace and Defense (ADTech) business in 2026 [8][9]