• 5 days Retail On Pace For Most Bankruptcies And Store Closures Ever In One Year: BDO
  • 10 minutes America Could Go Fully Electric Right Now
  • 2 hours Majors Oil COs diversify into Renewables ? What synergies forget have with Solar Panels and Wind Tirbines ? None !
  • 1 min America's Frontline Doctors - Safely Start Living Again!
  • 1 min France Sees 10.6% EV Market Share In September — 4× Growth Year On Year
  • 1 day Something wicked this way comes
  • 23 mins Conoco Pledges ‘Net-Zero’ Emissions in Break With U.S. Rivals
  • 1 day Permian in for Prosperous and Bright Future
  • 8 hours covid. stop the carriers and thus stop the virus.
  • 1 day Tesla Model 3 Is September's Top Selling Car of All Vehicles in Switzerland
  • 24 mins Vote Biden for Higher Oil Prices
  • 29 mins TX NATGAS flaring
  • 2 days California’s Electric Vehicle Dream Has A Major Problem: No
  • 5 hours GPOR - Gulfport Oil - Why?
  • 2 days A sneak peak into the US election
  • 2 days Ethanol present in gasoline
  • 3 days "COVID Kills Another Oil Rally" by Tom Kool 10/16/2020
The Battle For More Efficient Energy

The Battle For More Efficient Energy

The importance of energy efficiency…

This Deal Could Create The Next Big Shale Giant

This Deal Could Create The Next Big Shale Giant

Just a day after ConocoPhilips…

OPEC+ Is On The Brink Of A Crisis

OPEC+ Is On The Brink Of A Crisis

OPEC+ members are on the…

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