Of a selected 100 energy executives across the globe, 87 predict that M&A in the USA will match the hot pace of last year this year or even pick up the pace. That's according to the "Energy M&A Forecast" commissioned by the 220 energy-focused lawyers at Fulbright & Jaworski. The report covers trends globally and across all sectors of the energy industry, but has a strong emphasis on U.S. activity and one breakout for E&Ps. In a nutshell, the U.S. accounts for about half of all M&A globally, amazingly, both in terms of transactions and deal values. The report suggests this is because of ample opportunity locally and ease of doing business stateside. In fact, more than half of the overall respondents rated doing business with governments outside of their home country as difficult. No word on PDVSA's or Lukoil's response. A scant 14% of U.S. respondents would even consider doing business beyond the domestic border. Hardly anyone in the States are worried about record oil prices, with a giant majority expecting commodity prices to have no effect on M&A transactions are to even increase deal flow. Which leads to the No. 1 respondent-named obstacle to U.S. M&A---price expectation by the seller. The primary driver for energy M&A is the cost of production/realizing the economies of scale, cited by 57%. Another 44% chose access to supply/oilfields, with 36% naming new markets. Survey respondents are also expecting big deals to dominate, private equity to rise, and E&Ps to be most active among all energy subsectors. For a look at the full report, click here: “Energy M&A Forecast” Steve Toon, Editor, A&D Watch; Contributing Editor, Oil and Gas Investor; www.OilandGasInvestor.com; stoon@hartenergy.com
Recommended Reading
Beryl Makes Landfall East of U.S.’ Largest Energy Export Gateway Corpus Christi
2024-07-08 - Tropical storm Beryl made landfall in Texas as a Category 1. Life-threatening storm surges are expected to continue along the coast of Texas from Port O’Connor to Sabine Pass, including the eastern portion of Matagorda Bay and Galveston Bay, according to the National Hurricane Center.
Oil, Gas Industry Braces for Storm After Beryl Shifts Toward Houston
2024-07-07 - Chevron and Shell have evacuated offshore platforms as Tropical Storm Beryl could grow into a Category 2 hurricane when it makes landfall in the Houston area on July 8.
Oil Companies in Texas Restoring Operations Following Hurricane Beryl
2024-07-09 - Beryl's impact on oil and gas production is expected to be minor.
OPEC+ Working on Complex Oil Cut Extension Deal for 2024-2025, Sources Say
2024-05-30 - The OPEC+ deal might include extending some or all of the current voluntary production cuts of 2.2 MMbbl/d.
Markman: Pre-season Jitters in the Hurricane Zone
2024-06-05 - If hurricane predictions are correct, oil and gas fortunes could be in hot water.