Dealmaking may continue to rise, as price volatility abates and companies embrace energy transition
Increased energy demand as economies moved out of COVID-19 restrictions through 2021 helped oil & gas M&A continue its recovery in H2. Deal values jumped by 24 percent year-on-year to US$102.7 billion in 2021, while the number of deals increased by 16 percent to 150 deals.
Rising demand drove the surge in energy commodity prices through 2021, although some volatility remained—the price of the benchmark West Texas Intermediate (WTI) crude took a sharp dip in November on the news of the emergence of the Omicron COVID-19 variant.
While there will be some volatility over the coming period—in particular as COVID-19 is not yet fully under control—prices are expected to be more stable in 2022, absent a major shock. This should unlock the M&A market further, given that volatility is…