The upstream sector is driving oil and gas M&A activity

4 March 2019 (Last Updated March 4th, 2019 11:01)

In the last five years, mergers and acquisitions (M&A) played an important role in helping oil and gas companies survive through one of the most severe downturns in the industry. Oil and gas companies executed a number of deals as they acquired companies and assets at attractive valuations, while also offloading the ones that could impact profitability. The upstream sector, especially the US shales and assets in the North Sea drove the M&A activity in the oil and gas industry.

The upstream sector is driving oil and gas M&A activity

In the last five years, mergers and acquisitions (M&A) played an important role in helping oil and gas companies survive through one of the most severe downturns in the industry. Oil and gas companies executed a number of deals as they acquired companies and assets at attractive valuations. They also offloaded the ones that could impact profitability. The upstream sector, especially the US shales and assets in the North Sea drove the M&A activity in the oil and gas industry.

Targets M&A activity oil and gas

The US is the epicenter for M&A deals

The US was the epicenter of M&A activity in the last five years, driven largely by the vast potential for development of shale reserves. Development of horizontal drilling and hydraulic fracturing technologies for hydrocarbon extraction from shale formations created a boom in US oil & gas production. The US previously relied on imports to meet its energy demand. It now ranks among the top global crude producers, alongside Saudi Arabia and Russia. GlobalData’s report M&A in Oil and Gas – Thematic Research discusses these developments in-depth.

Highlights of the report include:

  • Discussion on how M&A deals have benefitted oil and gas companies in realigning their business operations to survive through the oil price crash
  • Evaluation of M&A deals in oil and gas industry. Highlighting the key developments across the various sectors within the industry
  • It identifies potential acquisition targets that are aligned towards one or more specific themes in the oil and gas industry

This report helps understand the major trends in the M&A theme and their bearing on the oil and gas industry and also gain an outlook on the major deals undertaken by oil and gas companies across various sectors.