CORRECT assumption. Big Oil is sitting-on HUGE cash reserves which it earned during peak-pricing last year, and is continuing to spend a huge amount of money on many projects despite the current economic doom & gloom.
Just this past Friday (yesterday), my brother accepted a position with his former employer - GEXPRO, formerly General Electric Supply Company of GE, as the General Manager of Oil & Gas Sector. He had left the company a year ago after 25 years of employment when he noticed that the Commercial Contracting industry was getting tight, and joined forces with long-time rival Westinghouse Electric Supply Company - WESCO.
But the recent economic downturn required him to become a company hatchet-man which he deplores, so he probed his contacts at his former employer who said his name was mentioned several times in his absense... and a couple of days later he is reinstated at GEXPRO with all benefits and financial options, just like he never left the company for a year. Plus a $2000 a month increase in salary (already nice)... and they said "welcome home" (very nice)!!!
BOTTOM LINE: why is my brother's former employer being so generous during a time when others are laying-off? BECAUSE he is good AND they can AFFORD to be generous because the Oil & Gas companies based here in Houston are continuing to spend huge amounts of money (which they expect my brother to get a bigger piece of for GEXPRO).
Moral of this story - it is a great time to be an investor in anything oil at these depressed prices... as the upswing is surely coming! DDI should explode in the coming years as proposed US drilling laws will force more offshore oil exploration - imo.
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