Occidental Petroleum leads Cowen's three favorite big oil stocks to buy

|By:, SA News Editor

The energy analysts at Cowen say that after three years of disappointment, 2014 is expected to bring stabilization and moderate growth with the potential for meaningful ramp-up in the sector during 2015-18.

One of Cowen's three big oil favorites is Occidental Petroleum (OXY) after announcing plans to spin off its California assets into a separate company; the firm likes OXY's potential to see the full benefit of rising oil prices in future results without being weighed by refining or midstream operations.

The firm foresees margin expansion at Exxon Mobil (XOM) with incremental growth coming from liquids-linked output, and thinks capex will start to drop after this year.

Cowen analysts also like Chevron (CVX) but would be patient buyers while awaiting commentary on further improvement due to better project mix.