Time for financial discipline
The pattern of consolidation and restructuring among oil companies during the past year looks set to continue
As 2017 ends, it is on track to go into the history books as a year of moderate recovery for the world oil industry: Opec output is broadly stable; the global inventory overhang is broadly shrinking; and oil prices are up nearly 13% from their January level. The combination triggered a broad recovery in oil investment activity across all sectors as companies consolidated both their upstream and downstream positions, many repeating a popular mantra: value over volume. According to Deloitte Touche Tohmatsu's Oil and Gas Mergers and Acquisitions Report-Mid-Year, 2017, global energy M&A activity was up 57% in the first half of this year, to $137bn. The US Energy Information Administration re
Also in this section
7 August 2025
The quick, unified and decisive strategy to return all the barrels from the hefty tranche of cuts from the eight producers involved in voluntary curbs signals a shift and sets the tone for the path ahead
7 August 2025
Without US backing, the EU’s newest sanctions package against Russia—though not painless—is unlikely to have a significant impact on the country’s oil and gas revenues or its broader economy
6 August 2025
Diesel market disruptions have propelled crude prices above $100/bl twice in this century, and now oil teeters on the brink of another crude quality crisis
5 August 2025
After failed attempts to find a buyer for its stake in Russia’s largest oil producer, BP may be able to avoid the harsh treatment meted out to ExxonMobil and Shell when they exited—and could even restart operations if geopolitical conditions improve
