• 5 minutes Trump will capitulate on the trade war
  • 7 minutes China 2019 - Orwell was 35 years out
  • 12 minutes Glory to Hong Kong
  • 15 minutes ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 16 hours Peaceful demonstration in Hong Kong again thwarted by brutality of police
  • 10 hours Here's your favourite girl, Tom!
  • 1 hour Canada Election Deadlock?
  • 1 hour Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 2 hours Clampdown on Chinese capital flight is shutting down their commercial construction in US
  • 10 hours IMO 2020:
  • 27 mins Nigeria Demands $62B from Oil Majors
  • 24 hours China's Blueprint For Global Power
  • 1 day Civil Unrest Is Erupting All Over The World, But Just Wait Until America Joins The Party...
  • 1 day Australian Hydroelectric Plant Cost Overruns
  • 1 day Ford Planning Huge North American Charging Network
  • 20 hours Deepwater GOM Project Claims Industry First
Alt Text

Is This The End Of The Aramco IPO?

After yet another delay, the…

Alt Text

A Major Buy Signal For Natural Gas Futures

After weeks of an unpredictable…

Alt Text

Are Sci-Fi Energy Sources Even Possible?

There are some wild and…

Rystad Energy

Rystad Energy

Rystad Energy is an independent oil and gas consulting services and business intelligence data firm offering global databases, strategy consulting and research products. Rystad Energy’s…

More Info

Premium Content

The Oil Majors Leading The M&A Boom In Oil And Gas

European supermajors BP and Shell occupy the top spots on opposite sides of Rystad Energy’s M&A ranking for the oil and gas sector during the last five-year period.

Rystad Energy has analyzed the share of resources traded globally from 2015 through July 2019. Two oil and gas companies stand out in the tally, not including the outlier deal between Occidental and Anadarko in May this year:

**BP has seen the most resource growth from mergers and acquisitions (M&A) across all supply segments, adding nearly 6.5 billion barrels of oil equivalent (boe).

**On the sell side, Shell tops the list by a wide margin. The Anglo-Dutch company has shed almost 11 billion boe since 2015 (excluding the effect of Shell’s 2015 acquisition of BG Group).

“The majority of BP’s shale and tight oil resource growth in recent years was attained through the acquisition of BHP’s upstream assets in the US last year,” says analyst Ilka Haarmann on Rystad Energy’s Upstream team. “On the other side of the spectrum, Shell divested significant resources from all supply segments after it acquired BG in 2015.”

(Click to enlarge)

(Click to enlarge)

The global average value of announced oil and gas asset transactions is an important indicator of market activity. In the first half of 2019, the total deal value sky-rocketed thanks to Occidental’s $57 billion acquisition of Anadarko. However, the massive Oxy-APC transaction is a clear outlier. Excluding this deal, Rystad Energy’s monthly M&A rapport shows that the monthly average in the first half of 2019 was just $7 billion, down 37.5% from the corresponding period last year.

(Click to enlarge)

“M&A activity is like a finger on the pulse of the upstream industry. And in recent months we have seen relatively low-value deals – the average tally pales in comparison to recent years,” Haarmann added. Related: You’re Footing The Bill For Bankrupt Shale Drillers

Yet these numbers do not paint a complete picture of the M&A market, as the share of offshore resources traded has risen steadily since 2015. Onshore resources, including shale and tight oil, accounted for as much as 54% of the traded resources in 2015, but has remained below 30% since 2016. Conversely, the ratio of offshore asset transactions has increased from 16% of traded resources in 2015 to more than 40% in 2018.

“As of July 2019, the share of offshore resources traded this year equaled the share of shale and tight oil resources traded,” Haarmann observed.

By Rystad Energy

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play