Energy Sector Plays Worth Your Attention Before Year-End: Where Oil Well Investing Opportunities Hide in 2026

Heading into next year, energy sector enthusiasts eyeing opportunities in oil well investing should zero in on three stocks positioned to outperform despite an uncertain commodity landscape. Phillips 66 PSX, Valero Energy Corporation VLO, and Oceaneering International OII represent distinct angles on a sector poised for selective strength.

What’s Coming for Oil in 2026: The Silver Lining

The U.S. Energy Information Administration projects West Texas Intermediate crude to trade at $51.42 per barrel in 2026, a notable drop from the current $65.32 expected this year and down sharply from last year’s $76.60 average. Rising global crude inventories are the primary culprit behind this forecast softness.

Here’s the twist: lower oil prices don’t uniformly hurt the energy patch. In fact, the refining segment—companies that convert raw crude into gasoline, diesel, and jet fuel—tends to thrive when feedstock costs decline. Meanwhile, upstream exploration and production firms benefit from dramatically reduced operating costs thanks to modern extraction techniques like horizontal drilling and hydraulic fracturing, which have compressed break-even thresholds significantly over the past decade.

This dynamic creates fertile ground for oil well investing as oilfield service providers supporting drilling operations should see steady demand through 2026.

Three Picks Positioned to Capitalize

PSX: Heavy Crude Advantages in a Soft Price Environment

Phillips 66 stands out as a refining powerhouse with an exceptional operational edge. During Q3 of this year, the company achieved a remarkable 99% crude utilization rate—its strongest quarterly performance since 2018. The firm’s strategic focus on processing Canadian heavy crude, which trades at substantial discounts to lighter varieties like WTI, positions PSX to amplify margins as oil prices soften further. Lower input costs combined with pricing advantages create a compelling case for the refiner’s 2026 outlook. The stock holds a Zacks Rank #1 (Strong Buy) designation.

VLO: Scale and Efficiency Drive Returns

Valero Energy commands respect as a global independent refining leader, operating 15 refineries with combined daily capacity exceeding 3.2 million barrels. The company’s disciplined approach—prioritizing refinery optimization and selective investment in high-return projects—positions it similarly to capture margin expansion when oil prices compress. With rising demand for oil well investing infrastructure and services, refiners utilizing spare capacity efficiently become natural beneficiaries. VLO carries a Zacks Rank #2 (Buy) rating.

OII: Oilfield Services Upside from Offshore Demand

Oceaneering represents a different lens on the energy complex, supplying offshore operators with robotic systems, engineered products, and specialized services. With oilfield services demand expected to remain robust in 2026, OII’s positioning strengthens considerably. The company’s Aerospace and Defense (ADTech) segment is forecast to drive incremental growth, with activity acceleration anticipated in Q2 and Q3 next year. Ranked #1 by Zacks, Oceaneering offers exposure to the services side of oil well investing.

The Broader Context

The convergence of lower crude costs, compressed operational expenses across drilling operations, and steady oilfield service demand creates a favorable backdrop for selective energy positions heading into 2026. Investors scouting oil well investing opportunities should view this period as presenting distinct opportunities across the value chain—from downstream refining to upstream services provision.