Global energy companies are getting back to basics and focusing on the hunt for new sources of oil and gas, ending years of underinvestment in exploration. Rebuilding reserves through acquisitions rather than exploration will be challenging after the number of massive deals in recent years.
“Companies are realizing this huge reserves replacement gap is not one that they can M&A their way out of,” Bracewell’s Adam Blythe told Reuters.
“While new acquisitions can help in part, many of the most obvious and impactful opportunities have already happened,” he said.
