The overall appetite for mergers and acquisitions within the oil and gas industry in the United States appears to be waning, according to new research by GlobalData.
According to Rigzone, the research shows 44 M&A deals during July, a decrease of 6.4 percent from the previous month and a 34.3 percent drop when measured over a 12-month average.
Not only that, but the value of M&A deals hit a 10-year low in the first quarter, but bounced back in the second quarter, according to Drillinginfo.
Still, industry players are showing hesitation. In July, only $9.89 billion worth of U.S. M&A deals took place — a steep 58.8 percent drop from last year’s $23.98 billion. Even though U.S. volume is on the wane, it’s still a significant share of global activity. GlobalData says the United States was responsible for a 51.1 percent share of the $19.36 billion global oil and gas M&A deal value in July.
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