for Oil Industry
Both the oil and car industries require deep capital investments and long lead times, and at times are rocked by global macroeconomic forces beyond their control. Right now, they are taking opposite strategies.
After two years of seeing spending contract, the oil industry is poised to boost capex in 2017, but some warn that may not be enough to keep a shortfall from occurring in the future.
As oil prices head towards $30 per barrel, oil companies are forced to use layoffs, asset sales, capex cuts, and debt in order to survive.