Renowned investor Warren Buffett has been steadily increasing his investment in the oil and gas sector, with his portfolio now holding over $30 billion in just two energy companies. The Oracle of Omaha has long been an advocate of oil and gas stocks, and his holding company, Berkshire Hathaway, is placing a significant bet on Chevron and Occidental Petroleum.

Chevron, one of the world's largest oil companies, has become the fifth-largest position in Berkshire's publicly traded portfolio, valued at around $18.6 billion. Berkshire began accumulating Chevron shares in late 2020, with an average entry price estimated to be around $130 per share. Since then, the investment has delivered a total return of nearly 120%, outperforming the S&P 500 index by a wide margin.

Despite recent fluctuations in Chevron's valuation, the stock is now trading at a relatively low price compared to earnings. With a price-to-earnings ratio of just 14.3, Chevron presents an attractive investment opportunity for those interested in the oil sector. Additionally, the company's robust free cash flow yield, currently at 7%, is significantly higher than its long-term average, allowing for dividend payments and stock buybacks.

Berkshire Hathaway's other significant investment in the oil and gas industry is Occidental Petroleum. Buffett has displayed confidence in the company's management, praising CEO Vicki Hollub for her effective leadership. Berkshire recently acquired more than 7 million additional shares of Occidental Petroleum, bringing their total ownership to 27.3%. Buffett has denied any interest in taking complete control of the company but remains optimistic about its prospects.

Occidental Petroleum, although an integrated oil business, has a substantial focus on its upstream segment, making it well-positioned to benefit from rising oil prices. Buffett's endorsement of Occidental Petroleum reinforces his bullish stance on long-term oil prices and highlights the company's operational excellence.

Investors looking to follow Buffett's lead in the oil and gas industry may find Chevron and Occidental Petroleum as attractive opportunities. Berkshire Hathaway's significant investment in both companies underscores their potential for long-term growth in the fossil fuel sector.

While Warren Buffett's investments carry weight in the financial world, it is essential to conduct personal research and consult with a financial advisor before making any investment decisions.