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.

For longer-term investors, Morgan Stanley is even more enthusiastic.

“In each of our recovery scenarios, the upside to NAV reflect the commodity price required to deliver the call on US production in 2019,and is ~166%, 107%, and 40%, in our Bull, Base, Bear cases, respectively. Hence a favorable longer-term risk/reward. The risk/reward is more relevant to investors with a long-term investment horizon, yet it also supports positioning in markets with similarly low near-term conviction in many sectors,” according to the bank’s note posted by Barron’s.

Energy Select Sector SPDR