With low oil prices pressuring oil producers’ bottom line, industry experts expect capital spending on new projects to decline by 20% and 30% on average, according to Wood Mackenzie, an energy consultancy. The consultant calculated that about $220 billion in investments have been cut so far, or $20 billion more than previously estimated two months ago, after the recent price declines. Some industry analysts see the downturn lingering into next year, though it will not be as severe as what was seen in 2015.
D.A. Davidson said Schlumberger (NYSE: SLB), OIH’s largest holding, should outperform its peers.
Market Vectors Oil Services ETF
