Over the past one month, the price of oil has dropped by 10%, causing panic among investors, making them wonder if the sudden fall in oil price witnessed between 2014 and 2016 is here again. However, oil company executives have expressed optimism that the future of the sector is bright.
Goldman Sachs Group, Inc. released a new statement that dives into fourth-quarter earnings. The publication revealed how oil executives have been coping with the continuing downturn that has been affecting the sector for three years. The executive team, led by Poeter Hachworth, revealed cheerful news for oil bulls.
The fourth quarter transcripts of over 1,000 pages contains a unique and clear message which implies that almost every oil executives accept the fact that the worst has come and gone while the era of growth has arrived. According to the executive team, “Although some management teams expressed more caution than others, the whole industry is retooling.” The statement further indicated that no less than 85% of the companies covered by the report plan to increase their capital expenditure in 2017. This shows their confidence in immediate production increases.