Oil's Seven Sisters Enter a ‘Golden Age’, Goldman Sachs Says
- Big Oil’s weight in equity indices to rise from 50-year low
- Cost cuts, recovering oil prices put companies in a sweet spot
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The world’s largest oil companies have survived a life-changing crisis, and are now poised to reap the rewards, Goldman Sachs Group Inc. said.
Big Oil is in a sweet spot with rising oil prices and low operating costs, leaving them with the biggest cash-flow growth in two decades and boosting earnings, Goldman said in a report Monday. That will increase their attraction for investors after years of elevated spending followed by crude’s slump sent their weighting in global equity indexes to a 50-year low, according to the bank.