Oil Industry Consolidates with Over $100B in Mergers Amid Rising US Output, Betting on Ongoing Oil Demand Growth
• This year has seen over $100B in oil & gas mergers, like Exxon's $59.5B deal for Pioneer Natural Resources
• Rising US oil production, hitting 13M barrels per day, points to industry confidence in ongoing crude demand
• Consolidation seen as a way to reduce costs and achieve economies of scale versus past boom-and-bust cycles
• Deals suggest the industry is shrugging off concerns over peak oil demand, expecting growth for years
• Pace of mergers may cool in 2023 but financial health of mid-size companies should improve through consolidation