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Power Play: Now is the time to buy big oil

Exxon Mobil
Luke Sharrett | Bloomberg | Getty Images

Oil is rebounding in October after sliding for most of the year. West Texas Intermediate crude has surged 10 percent, while Brent crude has climbed 9 percent this month.

Hugh Johnson Advisors Chairman and CIO Hugh Johnson tells CNBC's "Power Lunch" on Friday now is the time to buy big oil companies.

Read MoreGoldman Sachs sees oil rally fading

"Although U.S. production will increase substantially through 2020 (with temporary shutdowns driven by low prices), overall global demand (consumption) will continue to increase at a rate that remains modestly above the rate of increase of global production. More specifically, we anticipate that consumption will expand at a 1.24 percent rate through 2020 and production will expand at a 1.04 percent rate," Johnson said.

Under these conditions, Johnson believes oil prices will gradually increase over the next five years.

"We currently expect the price of oil (WTI) will average $53, $60, $66, $72, $76, $80 in 2015 through 2020. This outcome implies that investing in integrated oil and gas companies (ExxonMobil), oil and gas equipment & services companies (Baker Hughes) and oil and gas exploration companies (ConocoPhillips) will be rewarding," Johnson said.

ExxonMobil, Baker Hughes and ConocoPhillips are all lower during trading.