Acquisition Fever Intensifies in US Permian Shale Basin
Mergers and acquisitions (M&A) are picking up pace in the Permian, the largest oil basin in the United States.
The reason for the increase in the number of mergers and acquisitions is simple: large companies want the fastest way to replenish their reserves for production, compensating for the depletion of existing wells. This process is taking place in the Permian Basin of the USA.
The dynamics of M&A suggest that large capital in the US oil industry does not want to take unnecessary risks by investing in the development of new wells (which are quickly depleted using hydraulic fracturing), preferring to spend on purchasing ready-made units with good oil recovery.
The problem is that the change in drilling owners will not significantly increase the volume of oil extraction in the United States in the future. But few people in the industry care about this yet. A number of companies do not skimp on small things. Some deals reach $4.7 billion, such as Civitas Resources, which acquired NGP Energy Capital Management.
