Oil and Gas

Expert: Energy sector will be profitable in 2016

Muted expectations into 2016
VIDEO2:2502:25
Muted expectations into 2016

Craig Columbus of Tower Square Investment Management said Monday that the worst-performing sector in 2015 will be profitable next year.

"We are now at peak energy pessimism. If you look at commodity bear-market cycles, they typically last 20 years, but most of the price damage is done in the first six years. We've had five consecutive negative commodity-priced years," the firm's CEO told CNBC's "Power Lunch."

Read More Oil falls 3% near 11-year low as excess supply weighs

The energy sector of the has fallen over 20 percent in 2015, by far the biggest laggard among the 10 sectors.

Other reasons factoring into Columbus' optimism involve the dollar and non-OPEC supply.

"Dollar appreciation will still be up, but less, in 2016, and as non-OPEC supply starts to flatten, as that shale production starts to come off, I think it will create opportunity in things like natural gas," he said.

Read More 3 scenarios for oil in 2016: RBC commodity chief

The dollar has gained over 8 percent against a basket of currencies, while natural gas has fallen more than 35 percent in 2015. Natural gas, however, gained more than 9 percent on Monday.

Still, Columbus also said investors would have to be patient. "I thought that once we took out $38 on oil, we would trend back down to the mid- to low-$30s, so I think you have to be patient. Wait for WTI to pull back to you."