Abstract
This paper surveys cross-border oil and gas mergers and acquisitions (M&A) transactions in recent years using a large sample of 18,179 transactions announced over the period 2000–2018. M&A activities depend on economic fundamentals, but also on sector specifics and this particularly holds true for the oil and gas industry. Therefore, we have added sector specific to the standard economic explanations of mergers and acquisitions by accounting for institutions, resources, and politics. Indeed, our outputs show that industry-specific factors seem much more important in motivating M&A in the oil and gas industry than the familiar and researched economic conditions. In particular, the pattern of cross-border M&A is almost unrelated to opportunities offered by the resource base in different countries while political, institutional, and legal constraints shape the directions of cross-border M&A. The research covers the recent trends in the oil and gas M&A transactions, strengthens the understanding of various dynamics and sheds light on the potential future directions of the M&A market in the oil and gas industry.
Highlights
The oil and gas industry provides more than half of the world’s primary energy needs, Reddy andXie and Bos et al [1,2]
The strong growth is broad-based—increases in low-cost supplies to react to increasing supplies of liquefied natural gas (LNG) [3]
In the light of previous literature, we aim to cover a sector-specific discussion through mergers and acquisitions (M&A) in the oil and gas industry and potential drivers of the deals from various theoretical perspectives
Summary
The oil and gas industry provides more than half of the world’s primary energy needs, Reddy andXie and Bos et al [1,2]. Crude oil and natural gas are among the most traded commodities States (the U.S.), in hydraulic fracturing, horizontal drilling, drilling fluids and other techniques, shale oil and gas exploration and production have changed the industry substantially, Reddy and Xie and. Natural gas production reached 3309 million tons of oil equivalents in 2018. The strong growth is broad-based—increases in low-cost supplies to react to increasing supplies of liquefied natural gas (LNG) [3]. Overall, this growth in oil and gas supply enhances the investments in the industry
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