Why Big Oil Deals Are Ready for an Explosion, in Three Charts

As oil began crashing late last year, many prepared for a buying spree. Shale was going on sale. That sale has yet to show up. Global oil and natural gas deals so far this year are at the lowest level in a decade. The oil and gas producers that created a U.S. energy revolution haven’t seen their shares fall nearly as much as oil prices, leading to a disconnect between buyers and sellers. That discrepancy has begun to narrow, and deals are sure to follow. The three charts below help explain why a deal surge is around the corner. Chart 1: The going rate on reserves is cheaper than any time in the last 10 years. Chart 2: The reality of low prices is taking hold. Chart 3: The value of oil and gas companies, as estimated by analysts, is finally falling in line with actual share prices. (VIEW LINK)