Oil majors have tightened their belts, reducing costs by laying off thousands of workers and halted many new projects. Large integrated oil companies are expected to hold up better than drilling stocks as these giants have both upstream exploration and production, along with downstream refining operations.
“If we don’t have a price action on the upside, they’ll clearly have to dramatically reduce capital spending if they don’t want to borrow to pay that dividend,” CastleArk Management President and CIO Jerry Castellini told CNBC.
Energy Select Sector SPDR
