BP CEO Bob Dudley says he doubts there will be a surge of corporate consolidation in the energy industry – effectively a repeat of the mega deals in late-1990s bust that created mammoth oil firms – unless oil prices stay low for long.
Upstream oil and gas companies are waiting out volatility in the commodities markets right now, but many are expected be on the hunt for acquisitions after the dust in the crude market settles, according to an analysis by energy consulting firm Wood Mackenzie.
Mergers and acquisitions deal values declined by more than 20 percent last year, coming in at $337 billion, down from $423 for 2012, according to an EY study on global oil and gas transactions issued earlier this week.
Oil and gas producers worldwide bought fewer assets and spent more on developing a huge stockpile of reserves and acreage in 2013, bringing merger and acquisition activity to its lowest level in five years.
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