Growing Consolidation in the US Oil & Gas Sector

The US is the world's top producer of oil and gas, accounting for one-fifth of the global market share by producing ~13mn barrels of crude oil and ~100bn cubic feet of natural gas daily. In recent times, the US oil and gas sector has witnessed a significant surge in merger and acquisition (M&A) or consolidation activities, primarily led by larger companies seeking to increase production and secure access to extensive reserves, given the current favorable oil and gas environment. Furthermore, the reduced valuations of smaller firms and strategic exits by private equity entities in response to the growing energy transition have opened M&A prospects for major corporations. In this report, we delve into the recent trend of production and growing consolidation in the US oil and gas industry.