OPEC’s deal may put an end to the oil majors’ two-year depression

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The decision of the Organization of the Petroleum Exporting Countries to limit total crude oil production has suddenly helped the oil majors, Calgary Herald informs. Experts suppose that after the OPEC’s deal the biggest oil companies may turn back to investing into the industry instead of two years of cutting expenses.

“After all the hell we’ve had, there should be a pick-up now,” said Danilo Onorino, a portfolio manager at Dogma Capital SA, which owns oil companies’ bonds. “The industry has been damaged in the past two years and things need to start improving.”

The Calgary Herald reports that Saudi Arabia’s Energy Minister Khalid Al Falih has named getting explorers to start drilling again between the reasons of the OPEC deal. He is expected to take part in the Oil & Money conference where he will be joined by oil majors’ bosses such as BP’s Bob Dudley, Rex Tillerson of Exxon Mobil Corp. and Chevron Corp.’s John Watson.

“He needs to convince everyone to start investing again else there is a big supply crisis coming,” Onorino said. “If prices remain at these levels for about six months, the industry’s spending should start moving higher.”