With record-level deal making in the first quarter of 2018, 90% of oil and gas executives now expect the global mergers and acquisitions (M&A) market to improve in the next 12 months, up from 43% in April 2017. That is according to the EY Oil & Gas Global Capital Confidence Barometer, which finds that oil and gas companies represent the highest deal making appetite among all sectors surveyed, with 62% of executives intending to pursue M&A in the next 12 months compared with 52% globally.
Looking ahead, 90% of oil and gas sector executives view global economic growth as improving or stable. However, respondents cite inflation (49%) and market volatility (40%) as the biggest risks to investment plans, amid rising oil prices and oilfield services looking to renegotiate contracts at higher rates. Oil and gas executives also view political uncertainty (54%) and geopolitical tensions (40%) as the two biggest risks to growth.