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Warren Buffett is Backing This Energy Stock For Success

With 14 billionaire investors in the Insider Monkey database at the end of Q1 2025, Occidental Petroleum Corporation (NYSE:OXY) is included among The 5 Energy Stocks Billionaires are Quietly Piling Into.

An aerial view of vast facilities and pipelines in the deserts, illustrating the global scale of natural gas liquids transportation.

Occidental Petroleum Corporation (NYSE:OXY) is an independent exploration and production company with assets primarily in the United States, the Middle East, and North Africa. The company is a leading producer and one of the largest acreage holders in the Permian Basin, with assets concentrated in West Texas and Southeast New Mexico.

Occidental Petroleum Corporation (NYSE:OXY) is known for having the backing of Warren Buffett himself. The Oracle of Omaha made a significant investment in the energy firm back in 2019 and has consistently increased his stake since then. As a result, Berkshire Hathaway now owns an approximate 28% stake in Occidental. However, despite such a large stake, Buffett has publicly stated that he does not intend to take a controlling interest in the company, but it only represents his long-term bet on the enduring importance of oil and gas.

That said, things haven’t been going fairly well for Occidental Petroleum Corporation (NYSE:OXY), and the company has witnessed a sharp decline in earnings and revenue over the last three years. At the time of writing this piece, the OXY stock is also down by more than 30% over the last year, mostly due to its high debt costs, environmental liabilities, and overall market volatility.

Occidental Petroleum Corporation (NYSE:OXY)’s debt problems have been a significant cause of concern for investors, especially after its $12 billion acquisition of CrownRock last year. However, the company is aggressively working to reduce its debt and revealed in its Q1 2025 earnings call that it has repaid $6.8 billion of debt since Q3 last year, exceeding its target and reducing interest expenses by $370 million.

Moreover, Occidental Petroleum Corporation (NYSE:OXY) is actively working to reduce well costs and improve efficiency. The company’s low-cost and long-life production assets in the U.S. will enable it to stay cash flow positive even with crude oil prices in the low $30s per barrel.

If you are curious about the current state of the global energy industry and its top performers according to billionaires, take a look at the complete video here.

While we acknowledge the potential of OXY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than OXY and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Nuclear Energy Stocks to Buy Right Now and 15 Best Large Cap Energy Stocks to Buy According to Hedge Funds

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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