American Tungsten Corp. (TSXV: TUNG, OTCQB: DEMRF)
Building America’s Defense Critical Metals Supply
In 1973, the Arab oil embargo sent crude oil soaring from $2.90 per barrel to $11.65. Gasoline prices at U.S. pumps jumped 36% practically overnight, and drivers waited in line for hours. Fifty years later, history is not simply repeating itself, but returning in a more profound way – tensions in the Strait of Hormuz, escalating U.S.-Iran conflict, and the UAE’s announcement that it is leaving OPEC. Cracks are appearing in the global oil supply system, and these very cracks present a prime opportunity for savvy investors.
The following seven oil stocks each have unique advantages in the current environment and deserve in-depth research.
Upstream producers: low cost, high return
Occidental Petroleum, heavily held by Berkshire Hathaway, has a low-cost production advantage in the Permian Basin. Against the current backdrop of global supply shortages and producers’ ability to rapidly increase output, this cost advantage translates directly into profits. The continued endorsement of the stock by Warren Buffett and his successor Greg Abel demonstrates confidence in the long-term value of energy assets.
Also a Berkshire Hathaway heavyweight (about 7% of its portfolio), Chevron is benefiting from the regime change in Venezuela. After the U.S. military captured Venezuelan President Nicolás Maduro in January this year, Chevron expanded its heavy oil position in two joint ventures through an asset swap agreement with PDVSA. Although repairing and developing Venezuela’s oil sector will take decades, Chevron has seized the initiative. Its forward dividend yield of 3.6% offers both defensive and offensive attributes.
This company, with operations in the U.S., the U.K., Egypt, and Suriname, has seen its stock rise more than 140% over the past year, yet its P/E ratio remains attractive at just 9.4 times. The company is focused on dividend payments and debt reduction: in the first quarter, it returned $88 million to shareholders through dividends, and by repaying $634 million in short-term bond maturities, it expects to save more than $60 million in annual interest expenses in 2026. Its 2.5% dividend yield, while not the highest, is growing steadily.
Downstream refiners: direct beneficiaries of widening crack spreads
As a downstream refining company, Valero processes crude oil into gasoline, propane, asphalt, and other products. With crack spreads widening and refining margins soaring, Valero is a core beneficiary of this trend. Additionally, its Gulf Coast refineries are capable of processing the type of heavy, sour crude that comes from Venezuela – a unique competitive advantage as the country’s political situation evolves. Although the stock is trading near its 52-week high, its P/E ratio is a reasonable 18.9 times, with a dividend yield of about 2%.
International majors and LNG: diversification and export dividends
This Norwegian state-controlled energy company (formerly Statoil) may be unfamiliar to many U.S. investors, but its stability stands out. Norway’s government pension fund also holds a significant stake, providing additional support for the stock. As Europe seeks to break free from Russian energy dependence, Norway has stepped up to supply oil and gas to the EU and the U.K. The company also has interests in renewables, offshore wind, and hydrogen, offering both traditional energy cash flow and a transformation growth story.
The U.S. is the world’s largest natural gas producer and a major force in LNG exports. The current U.S.-Iran conflict has damaged LNG infrastructure in major exporter Qatar and caused shipping congestion in the Strait of Hormuz, a key chokepoint for energy transport, further highlighting the strategic value of U.S. LNG. Cheniere Energy is the largest LNG producer in the U.S. and the second-largest operator globally, with world-class liquefaction facilities in Louisiana and Texas. As European and Asian demand for U.S. LNG continues to grow, Cheniere is on a long-term upward trajectory.
As one of the largest natural gas producers in the U.S. (primarily in the Marcellus and Utica shales of the Appalachian Basin), EQT benefits from two tailwinds: rising LNG export demand from Europe and Asia, and surging U.S. electricity demand from AI data centers and broader electrification of the economy. Nuclear power takes too long to develop and permit, so natural gas is expected to serve as the main bridge fuel from coal to renewables, keeping the commodity relevant for decades and putting companies like EQT in a strong position.
