Oil & gas mergers and acquisitions on the rise
05 June 2018
Record-level deal making took place in the oil and gas sector during the first quarter of 2018. Now, 90% of oil and gas executives are anticipating the global mergers and acquisitions market will improve in the next 12 months, up from 43% in April 2017, according to the EY Oil & Gas Global Capital Confidence Barometer. The barometer has found that oil and gas companies represent the highest deal-making sector among all the divisions surveyed, with 62% of executives intending to pursue mergers and acquisitions in the next 12 months compared with 52% globally.
Looking ahead, 90% of oil and gas sector executives view global economic growth as either improving or stable. However, respondents cite inflation (49%) and market volatility (40%) as the biggest risks to investment plans, amid rising oil prices and oilfield services looking to renegotiate contracts at higher rates.