Oil: a new study by corporate advisors Harrison Lovegrove and research firm John S. Herold documents the recent mergers and acquisitions frenzy within the oil industry in the race to secure the sources of energy.

Oil: A new study by corporate advisors Harrison Lovegrove and research firm John S. Herold documents the recent mergers and acquisitions frenzy within the oil industry in the race to secure the sources of energy. The study finds that the value of global mergers and acquisitions in the oil and gas industry reached $160 billion in 2005, its highest level since 1998, as 240 deals, a 40% jump from 2004. High oil prices are credited for fueling the confidence of oil companies, which were willing to pay 54% more for North American acquisitions and 155% more for deals outside of North America. Overall, global acquisition prices soared 350% in 2005, with Canadian firms commanding the highest prices. State-run oil companies made $13 billion in acquisitions in 2005, tripling 2004's number. Transactions by Chinese oil and natural gas companies alone reached $6 billion in 2005, increasing 600%, and marking the emergence of China as a worldwide energy power player. But larger oil companies are divided about the future prospect of costly acquisitions. At least one big company, however, is seeking candidates to snatch up once oil prices dip below $45 a barrel.

Source: Financial Times