The unprecedented oil demand plunge in the COVID-19 pandemic is poised to change the oil sector forever, as fewer companies holding high-quality assets emerge after the downturn, Goldman Sachs said on Monday. Despite another round of ‘leaner and meaner’ industry consolidation after the one from the previous price downturn in 2015-2016, the firms that make it through this price crash will still see capital expenditure constrained, the Wall Street bank warned. “Big Oils will consolidate the best assets in the industry and will shed the worst … when the industry emerges from this downturn, there will be fewer companies of higher asset quality, but the capital constraints will remain,” Goldman Sachs analysts wrote in a note on Monday, as carried by Reuters. According to the investment bank, the Saudi-Russian oil price war has been rendered irrelevant in the face of enormous demand destruction as major economies remain in lockdown, […]