Last updateTue, 13 Apr 2021 2pm

S&P: Oil and Gas M&A Activity Surges

Oil and gas M&A deal-making in the first quarter of 2021 rebounded from year-ago levels as supermajors divested assets and corporate consolidation continued, according to S&P Global Market Intelligence data.

The industry announced 28 more whole-company and minority-stake deals in first-quarter 2021 than in the first quarter of 2020: 117 deals compared to 89. In the same period, the combined value of deals soared from $3.86 billion to $26.37 billion. The number of announced asset transactions fell slightly from 89 to 86, but their aggregate value climbed nearly $10 billion to $11.38 billion. 

Haynesville Gas Output Approaching Record Levels

Given the Haynesville shale's strategic proximity to the U.S. Gulf Coast, a bullish outlook for LNG export demand this summer is giving producers there another good reason to grow output.

According to a recent forecast from S&P Global Platts Analytics, U.S. terminals should continue to operate at over 90% capacity utilization through the summer. Last summer, record-low global gas prices prompted many exporters to defer cargo-liftings, slowing feedgas demand and ultimately shutting-in some U.S. liquefaction capacity. 

Global LNG Demand Highest Since Pandemic Began

Imports of liquified natural gas (LNG) “jumped 5.8% in March from a year earlier, the biggest increase since March 2020,” according to ship-tracking data compiled by Bloomberg. “Demand for the fuel used in heating and power generation had been steadily growing before COVID-19, as nations shift away from coal-fired power over climate concerns.” 

U.S. Energy Consumption Fell by a Record 7% in 2020

In 2020, total U.S. energy consumption fell to 93 quadrillion British thermal units, down 7% from 2019, according to EIA’s Monthly Energy Review. Last year marked the largest annual decrease in U.S. energy consumption in both percentage and absolute terms in the consumption data series that dates back to 1949. Much of the 2020 decrease in energy use is attributable to economic responses to the COVID-19 pandemic that began in the U.S. during the spring of 2020.

Before 2020, the largest recorded annual decrease in U.S. energy consumption occurred between 2008 and 2009, when consumption decreased by 5% during the economic recession. Other large annual decreases in U.S. energy consumption occurred during economic recessions in the early 1980s and in 2001. 

Report: Automation Could Save Oil & Gas Industry Billions

In a report that looked into the adoption of robotics across the petroleum industry, Rystad Energy found that existing solutions could replace hundreds of thousands of oil and gas jobs globally and reduce drilling labor costs by several billion dollars by 2030, if there is an industry push for such a transition.

Overall, Rystad Energy believes that at least 20% of the jobs in segments such as drilling, operational support, and maintenance could in theory get automated in the next 10 years. Looking at the current staffing headcount of some key oil and gas producing countries, the U.S. could reduce its staffing needs by over 140,000 employees. 

VALVE Magazine Print & Digital


• Print magazine
Digital magazine
• VALVE eNews
Read the latest issue

*to qualified valve professionals in the U.S./Canada

Looking for a career in the Valve Industry?

ValveCareers Horiz

To learn more, visit the Valve Careers YouTube channel to watch the videos below or visit ValveCareers.com a special initiative of the Valve Manufacturers Association

  • Latest Post

  • Popular

  • Links

  • Events

New Products