Oil Analyst: We Should Be Looking For Safe Harbors During This Storm

"We should be pretty worried"

Despite the massive collapse we've seen in oil, the number one rated integrated oil analyst on the street still thinks there are opportunities out there. Evercore ISI's Doug Terreson joined the "Halftime Report" traders to discuss some safe harbor plays amid the storm.

With oil dropping below $30 today, Terreson thinks the longer term health of the sector's largest names are at risk. The IMF and World Bank lowering GDP predictions coupled with ongoing geopolitical tensions in the Middle East point to uncertainty for oil's 2016 outlook.

Despite his negative long-term outlook, Terreson believes that some companies will weather the storm--namely BP, Chevron, and Exxon. He believes they will continue to pay out dividends. The only scenario in which this would not be the case, he argues, is if oil continues to trade at current levels for the next couple of years. Since he believes the market will eventually begin to heal, these companies are safe bets.

Halftime Report trader Joe Terranova thinks we are currently in the 2008-equivalent for the energy sector. He believes that we will begin to see the spillover effects of lower energy in other industries. For instance in the coming months investors should watch for what percentage of bank loans are energy-specific.

Trader disclosure: On January 12, 2016 the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Halftime Report" were owned by the "Halftime Report" traders:

Pete Najarian: Long AAPL, BAC, BKE, BMY, BP, DIS, DISCA,FOXA, GE, KO, MRK, PEP, PFE, he is long calls A, AAL, ABX, BAC, CHS, CMI, COP,DAL, EMR, GDX, GE, HAIN, HUN, LC, MOS, MSFT, NRF, NRG, PNR, POT, UAL, VZ, WYNN, ZIOP. Long puts FCX, MRO

Stephanie Link: Long AAPL, ACE, BAC, COST, CRM, CXO, DAL, DG,DLPH, DOW, EL, ESRX, GE, GILD, GOOG, GOOGL, INTC, JPM, LLY, LPX, LRCX, LULU,MCD, MS, NXPI, PF, PPG, PRU, QCOM, RHT, SBUX, SLB, SWK, SYF, TJX, UNH, URI, V,WBA, WFC, WHR, WMT

Joe Terranova: Long VRTS

Sarat Sethi: Long AA, AAL, AAPL, ACN, BWA, CSCO, DAL, DGI,DLPH, F, FB, GE, GM, GOOG, HAR, HON, LB, M, MSFT, QCOM, SJM, UAL, V, WFM, YHOO,YUM