18 December 2018
Disruption shapes oil and gas M&A at a time of oil price volatility
Technology's growing importance in building resilience to volatility means that digital capabilities will likely be a notable driver of acquisitions in 2019
Transaction activity is in many ways a gauge of market and capital confidence. If we look back over the last year, oil and gas transaction activity has reflected the sentiment across the whole industry value chain. Overall oil and gas deal volume has been resilient, but once you strip out some of the more structural transactions in the midstream, it is consistent with the cautious optimism that now characterises the sector. While upstream assets are valued on a long-term view of oil and gas prices, short-term prices tend to increase uncertainty. Accordingly, volatility typically thwarts deal activity. Following the 2016 agreement between Opec and non-Opec producers to cut production, oil pri
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