Characteristics and Outlook of the Global Oil and Gas Resource M&A Market in 2022

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Abstract The global oil price fluctuated widely at a high level throughout 2022 due to the combined impact of limited investment growth in global upstream oil and gas, the increasing regional geopolitical risks of oil and gas driven by the Ukraine Crisis, and a slower global economic growth resulting from repeated COVID-19 outbreaks, which exerted a negative influence on the global oil and gas resource M&A market. The total number of global oil and gas resource M&A transactions in 2022 was only 215, down by 19% from 2021 and close to the lowest level in 20 years. The total amount of M&A transactions was only USD 88 billion, down by about 36% from 2021. The global oil and gas M&A market in 2022 had four overall characteristics: First, the number and amount of transactions worldwide showed a “double decline” trend, with the number of transactions in Africa hitting an eight-year high; second, the overall amount of M&A transactions by various international oil companies decreased, and international oil giants continued to sell “non-core” oil and gas assets; third, the Implied Long-Term Oil Price continued to rise, with significant differences from the trend of international oil prices; fourth, in North America, unconventional oil and gas asset transactions remained active, and the amount of oil sand transactions approached the highest value in nearly 10 years. Looking forward to 2023, with the international oil price fluctuating at a high level and the global epidemic gradually becoming stable, it is expected that M&A activities in Africa and South America will significantly increase, international oil giants will seek transactions on both the buying and selling sides, and unconventional oil and gas resource transactions in North America will still be a market hotspot.

Published: 04 November 2024

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