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Significance
The current oil industry downturn has not led to the same sort of industry mega-mergers that previous down cycles have produced. However, as oil prices stabilise at 45-50 dollars per barrel and a return to 30-dollar oil looks less likely, the strongest US shale producers are initiating deals that position them to take advantage of the price recovery.
Impacts
Despite the broader industry downturn, the US shale sector remains an attractive long-term investment for many investors.
Large-scale megaprojects are likely to fall out of favour as companies shift spending to smaller short-cycle investments, such as shale.
Oilfield service companies will benefit from increased activity as stronger companies buy up weaker drillers.
Keywords:
economy,
industry,
corporate,
debt,
energy,
finance,
gas,
hard commodities,
investment,
oil,
prices,
United States,
NA
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2016
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