Oil and natural gas are inherently volatile commodities that are increasingly facing headwinds from a world that is looking to reduce its reliance on carbon fuels. The importance of oil to the world economy, however, suggests that any transition away from this energy source will be decades long, so investors probably shouldn't run for the hills. But the changing energy landscape does mean that you need to take a more considered view of the oil stocks you choose to buy. Three options to think about in December are Chevron (CVX 0.01%), TotalEnergies (TTE 0.26%), and Devon Energy (DVN 0.29%).

Chevron is focused on being reliable

Chevron is what is known as an integrated energy company, which means its business spans the entire oil and natural gas value chain. That helps to smooth out financial performance in an industry known for being volatile since some areas (refining, for example) can benefit when oil prices are low. On top of that diversification, Chevron also has one of the strongest balance sheets among its closest peer set, with an ultralow debt-to-equity ratio of 0.12 times.

However, the energy giant's biggest claim to fame is probably its 36 consecutive annual dividend increases. That record has been achieved despite the inherently cyclical nature of the industry, which is fairly impressive. The dividend yield is around 4.1% today. The combination of yield, dividend consistency, and financial strength is the kind of thing that conservative dividend investors should find attractive in a volatile sector like energy. And while the long-term shift toward clean energy is a worry, $270 billion market cap Chevron has the wherewithal to buy its way into the renewable power business when management believes the time is right.

TotalEnergies is transitioning with the world today

French TotalEnergies is another integrated energy giant, with operations that span the oil and natural gas value chains. It has a yield of around 4.6%. While it doesn't boast the same annual dividend growth streak as Chevron, it has a dividend story to tell. Like European peers BP (BP 0.38%) and Shell (SHEL 0.54%), TotalEnergies announced plans to start investing in clean energy. Unlike BP and Shell, however, it didn't cut its dividend when it made that announcement, stating that the board recognizes that investors value the income the stock generates for them.

The company's game plan is to use oil profits to invest in cleaner alternatives, including solar, wind, and electricity. Those businesses make up nearly 7.5% of business segment operating income today. But the approach here is a multistep process, with the company also looking to focus around its best oil assets while increasing exposure to natural gas, which is cleaner-burning and considered a transition fuel. But the big story for investors is that TotalEnergies provides exposure to carbon fuels and to clean energy. If you are looking to hedge your energy bets, it is a solid option.

Devon Energy goes all in on oil

At the other extreme from TotalEnergies is Devon Energy, a focused oil and natural gas producer with a U.S. footprint. There are a number of positives here, including a low break-even price point of around $40 per barrel of oil and an inventory of future drilling opportunities over a decade long. Generally speaking, it is a well-run energy producer. The wrinkle here is that oil and natural gas prices are the main driving force of the company's financial results, so the top and bottom line are often very volatile.

If you are looking for direct exposure to energy, this could be the stock for you. But there's more. Devon Energy's dividend is variable and tied to its financial performance. That means that the dividend is likely to rise when oil prices rise and, on the flip side, fall when oil prices fall. So there's an even greater tie to oil than meets the eye. Investors who are interested in a consistent dividend will probably want to avoid this stock, but those seeking to hedge real-world energy costs might find it quite appealing. The yield today is 6.3%, but given the variable nature of the dividend, that's not a figure you should focus on too much.

Three different ways to invest in energy

There's no right way to invest and there's no perfect stock for every investor. That's particularly true in the energy patch, which is going through some big changes today. Conservative dividend investors will probably like financially strong industry giant Chevron, while those seeking to hedge their bets with a clean energy twist might prefer TotalEnergies. And for those that simply want to go all in on oil and natural gas, well, Devon Energy is very close to a pure play in the energy space.