A dark age in the oil and gas industry is almost inevitable.

It’s part of the white-knuckle cycle operators live with.

The oil and gas industry finds itself on the rack yet again. But a December survey of 200 executives tempers short term pessimism with a broadly bright outlook five years from now. In the survey, conducted by Pearson Partners International, industry leaders weighed in on oil and gas prices, workforce expectations, capital spending and M&A.

Other surveys, analysts and industry observers have considered the causes of the downturn, including global oversupply of oil and gas, low oil prices and fears of increased regulations and taxes. Oil and gas leaders are greatly concerned about how the EPA will deal with fracking and also bans by local or regional governments.

By the end of 2015, about 60% of respondents said WTI could average $65-80 per barrel. For now, the industry is dealing with the pain of low prices.

Dozens of E&Ps have lowered their capex compared to 2014 since most executives don’t expect a rapid recovery for oil prices. Workforce reductions will continue, so far led by service companies cutting more than 20,000 jobs.

Still, a few bright spots are in the making for 2015.

M&A activity is expected to increase in 2015, said Chris Reinsvol, Pearson Partners’ energy practice leader. That echoes analysts who have said consolidation is necessary as the industry moves forward.

About 70% of those surveyed in early December expect M&A in 2015 to be moderately or significantly more active.

“Suppliers expect to see greater M&A activity in their segments than the oil and gas companies,” Reinsvol said.

He noted that two of the largest deals of 2014 were reached even as oil prices were tumbling: The $34.6 billion merger agreement between Halliburton (NYSE: NYSE) and Baker Hughes Inc. (NYSE: BHI) and Repsol SA’s purchase of Talisman Energy Inc. (NYSE, TSE: TLM) for about $13 billion.

While the road through 2015 appears bleak, executives remain optimistic about the industry and see a better operating environment in the years to come, the survey found. About 76% of respondents said the industry will be significantly or moderately better off in five years. Suppliers have a slightly more positive five-year outlook than oil and gas companies.

When asked about their own companies, 83% of executives expect their companies to perform better by 2020, while 5% said their companies would be worse off.

“This very positive response speaks both to the optimistic nature of the oil and gas industry as a whole, as well as the understanding of the cyclical nature of the business,” Reinsvol said.

Tailwinds

Company leaders also have high hopes for a global economic recovery, new technology and increased use of natural gas.

Lower costs and increased oil and gas exports were also cited by at least 30% of respondents.

The most cited technology developments were improvements in hydraulic fracturing, drilling technologies and the use of Big Data or the “digital oilfield.”

Natural gas is also seen as a future opportunity, particularly for power generation. In 2013, about 39% of electricity generated in the U.S. came from coal-fired power plants.

“Switching a large portion of this power generation from coal to natural gas would be quite valuable for gas producers,” Reinsvol said.

As for lower costs, they cut both ways: E&P companies see dipping service costs as an opportunity, while drillers and suppliers see them as a challenge on the horizon, Reinsvol said.