While many investors are lured into investing with boilers manufacturing company as well as boiler repair services, there are also those that are seeking to invest in oil based businesses. People might think that this is a crazy move for investors given the fact that the industry is experiencing turmoil. However, investors are seeing a new opportunity while the prices are down and are wise enough to seize it.
In recent news, different oil companies have been slashing their capital budgets down, retrenched several workers and are continuously pursuing to scale down expenses. Many will see this as a negative move for the oil companies. However, investors and business owners see this as an intelligent move in order to keep the business running and functional. Hopefully the era of oil crisis will soon be over and these companies will rebound from the pit.
Among those companies that have declared that they will be tightening their spending in the coming years are the Calgary-based oil producing companies. Though their capital spending will be significantly reduced, these companies have insisted that they are still committed in long term growth in their oil and gas production.
Cenovus Energy Inc and Suncor Energy Inc- the prime leaders of the country in production of oil sands also announced that they will cut their capital spending. They are bracing for months of pain as the price in oil has still not recovered.
Another troubled company, Penn West Petroleum Ltd, gave a statement to the public that it will also cut down its spending after it had a deficit of at least $28 million during the second quarter of the year. The company was forced to shut approximately 2,000 barrels per day.
The committee on crisis management for these companies were warmly greeted and applauded by the investors in a meeting. This is for the fact that these major producers were outperforming the dismal forecast of the oil sector for the second quarter. Indeed, the great efforts of the oil giants reverberated in the stock market. The stocks for these companies experienced a gain on the Toronto Stock Exchange and were led by Suncor which had a 5.5 percent gain.