Even the Best Big Oil Stocks Can't Beat These Small Companies

Big Oil stocks are the seven "oil supermajors" that do everything from oil drilling to refining to retail sales. This is a list of the Big Oil companies:

Big Oil Company Share Price YTD Market Cap
Exxon Mobil Corp. (NYSE: XOM) $83.44 -7.58% $353.13B
Chevron Co. (NYSE: CVX) $113.56 -3.5% $217.62B
ConocoPhillips Co. (NYSE: COP) $48.21 -3.78% $61.42B
Royal Dutch Shell Plc. (NYSE ADR: RDS.A) $52.35 -3.82% $221.08B
BP Plc. (NYSE ADR: BP) $34.12 -8.71% $112.69B
Total SA (NYSE: TOT) $50.26 -1.35% $124.6B
Eni SpA (NYSE: E) $31.51 -2.3% $58.69B

Despite being huge global oil companies, shares of Big Oil stocks are all in the red this year. Those losses have all happened even as the Dow is smashing record highs and trading up 6.4% year to date.

big oil stocksUnlike smaller shale oil companies raking in profits already (we'll show you our top oil stock picks in just a minute), Big Oil companies are bleeding money on giant, unprofitable projects. That's why Big Oil company stocks are sinking this year.

But oil supermajors are still popular with investors because of their big dividend payments.

"The supermajors are only really good at one thing - paying dividends," says Money Morning Global Energy Strategist Dr. Kent Moors.

But savvy investors don't need to buy into these failing oil stocks just to find dividends. You'll see the shale oil stocks we've picked pay dividend yields just as high as the supermajors, with much better stock growth potential.

In fact, the oil company stock we're about to show you has a whopping dividend yield of 6.78%.

And now that oil prices are heading even higher, this stock is set to soar.

Don't Miss: Our Bold 2017 Oil Price Forecast

That's why Wall Street analysts predict this stock's revenue could jump 35% higher this year. They also predict its share price could climb 26%.

And we think these estimates are way too conservative, because oil prices are heading even higher than Wall Street thinks.

Here's the best oil stock to buy this year...

The Best Oil Stock to Buy in 2017

[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]

Plains All American Pipeline LP (NYSE: PAA) is one of the small American oil companies capitalizing on the shale oil boom.

PAA is a midstream oil company that transports and stores crude oil across the United States. PAA is responsible for managing over 4 million barrels of crude oil and natural gas a day.

That means as oil prices rise and American oil drillers scale up production, PAA's services and pipelines will be in high demand in 2017.

In fact, it's already preparing to handle more volume...

In 2016, PAA launched a joint venture with Phillips 66 Partners LP (NYSE: PSXP) to build a $15 million pipeline to connect shale oil fields in Canada with the central hub in Cushing, Okla. The new pipeline will expand capacity by100,000 barrels of oil a day.

And PAA just bought Advantage Pipeline LLC for $133 million. That gives PAA another 70-mile oil pipeline in the Delaware Basin.

Analysts are also expecting PAA to have a strong 2017. The average 2017 earnings-per-share (EPS) estimate of 19 Wall Street analysts shows EPS climbing 52% year over year.

Shares of PAA currently trade at $32.69 and have gained more than 50% over the last year. The same Wall Street analysts have a current price target of $40.

New Oil Tax Set to Cost Americans at the Pump: Paul Ryan is set to introduce a new tax to Congress, and it will cost Americans an additional 30 cents or more per gallon at the pump. Investors like Bill Gates, Warren Buffett, and George Soros have collectively sold billions of oil stocks recently. Now a former intelligence operative is stepping forward to explain why this is the end for Big Oil. Click here to continue...

Follow Money Morning on Facebook and Twitter.