According to research from international law firm Pinsent Masons, many senior executives within the oilfield services industry expect to see an increase in mergers and acquisitions over the next year. Out of 200 surveyed leaders, 86 percent believe merger activity will rise, while 70 percent said they were considering acquisition themselves.
Of those surveyed, 74 percent think international expansion will drive such mergers and acquisitions. The most attractive emerging markets were China, Indonesia, Mexico, Nigeria and Singapore. Meanwhile, 67 percent of respondents said they expect the U.K. will become the best of established markets over the next three years. Almost all respondents – 96 percent – feel the U.K. Continental Shelf will recover peak profitability over time.
David McKEwing, a partner in the oil and gas team at Pinsent Masons, said most of the conversation surrounding oil and natural gas has primarily been concerned with responding to an unpredictable economic climate. Still, he continued, the oilfield services industry is a crucial job provider and should be worth $144 billion by 2020. He also said the industry was a significant wealth creator.
“What our research shows is an industry on the cusp of transformation,” he noted. “