Originally published on Best Stocks Category: best stocks to buy now Source: Getty ImagesImagine being an oil investor and having the ability to see into the future. Not just a general idea of where the market is headed, but specific details about which companies will thrive and which will fail. That sounds like something only a prophet could know, right? Well, in a sense, that’s exactly what some oil stock investors are.In response to the precipitous decline in oil prices from 2014 through 2016, many energy company executives were able to foresee how things would play out over the next few years. Some saw opportunities for cost-cutting measures that others did not. As a result, those who invested in oil stocks with a clear vision of the future have been reaping rewards ever since.Snapshot of the Oil MarketWhile it may not seem like it, many of the fluctuations in the oil market can be traced back to events that occurred nearly a century ago. In the early 20th century, crude oil was still primarily used for things such as kerosene and paraffin wax. The first modern oil discovery was in Texas, in 1901. Over the next few decades, Texas would become the epicenter of the world’s oil supply. Even with the abundance of crude oil being produced in the early 20th century, it was still nowhere near being a major source of fuel. That would change when Colonel Edwin Drake dug the first oil well in 1859.Exxon Mobil Corp.The most important thing to remember about oil stocks is that the sector is cyclical. Over the years, oil companies have survived multiple cycles of volatility in the price of oil. This has largely been due to the fact that these companies are large, multinational, and have access to an array of assets. Exxon Mobil is a great example of this. The company has operations in over 50 countries and produces oil in many of them. Exxon also has a long history of paying dividends to shareholders. That’s a trait that many oil companies have struggled to maintain over the years. The company has paid a dividend every year since 1903. Exxon has also paid above-average dividends for 17 consecutive years.BP PLCLike many of its competitors, BP was hit hard by the fall in oil prices that began in 2014. The company saw its profits decline significantly and had to implement cost-cutting measures. If you were to invest in BP stock around that time, you would have seen the value of your holdings fall by as much as 40%. However, BP’s management saw the downturn in crude prices as an opportunity. BP was one of the first companies to implement a significant cost-cutting measure. The company sold off many of its assets and used the proceeds to pay down debt and shore up its balance sheet. BP’s management also turned its focus toward the highest-margin segments of its business. BP has a long history of successfully navigating the cyclical nature of the oil industry. As a result, the company has a strong balance sheet and is well positioned to succeed in the future.Royal Dutch Shell PLCShell is the second-largest oil company in the world. The company is headquartered in The Hague and has operations across 90 countries. Shell is also one of the pioneers in the development of offshore oil fields. The company has been producing oil from offshore fields since the 1950s. As a result of its long history, Shell has one of the strongest balance sheets among its competitors. That has allowed the company to increase dividends during each of the past 16 consecutive years. Like BP, Shell has managed to weather the storm of falling crude prices and is well positioned to succeed in the future.ConocoPhillipsConocoPhillips is the largest pure-play oil company in North America. The company primarily produces oil from onshore fields in the United States, Canada, and Argentina. ConocoPhillips is a great example of a company that has been able to weather the cyclical nature of the oil industry while remaining profitable. The company has also been able to maintain its profitability while paying a steady stream of dividends to shareholders. ConocoPhillips has paid a dividend every year since 1932.ConclusionAs an oil investor, you’ll want to keep a close eye on the market. Oil prices will have a direct impact on your investment. When the price of crude oil rises, oil stocks usually fall and vice versa. There are no guarantees when it comes to investing. However, there are certain companies that are less risky than others. If you can find an oil stock that has a long track record of paying consistent dividends and a history of successfully navigating the ups and downs in the market, you’ll have a much better chance of being successful. The future of the oil industry is uncertain. However, if you know where to look, there are some excellent opportunities for long-term investors. If you can find the best oil stocks to buy in 2022, you’ll have the opportunity to see some strong gains from your investment.