Shale gas boosts US energy deals in 2011

The total value of US oil and gas mergers and acquisitions (M&A) has increased significantly in 2011, according to PwC US. The analysis suggested it was due to continued investment […]

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By Priyanka Shrestha

The total value of US oil and gas mergers and acquisitions (M&A) has increased significantly in 2011, according to PwC US.

The analysis suggested it was due to continued investment in US shale gas infrastructures and continued interest from foreign buyers in the energy industry.

Last year there were 191 deals worth an estimated $186.5 billion, which was a 38% increase from $706 million in 2010.

Rick Roberge, partner in PwC’s energy M&A practice said: “M&A activity in the US oil and gas sector was extremely active in 2011 as shale plays continued to attract the large multinational energy companies, foreign buyers and private equity firms.”

“International players invested heavily in US shale plays through joint ventures in 2011 and we believe a trend to watch out for in 2012 is for foreign buyers to acquire entire companies that operate in shale plays so they can take more control of the assets through operatorship.”