The U.S. shale gas industry may usher in a new wave of mergers and acquisitions

According to a report from China Petroleum and Chemical Corporation on May 31st, following some huge transactions in the shale sector in the United States last year, ConocoPhillips merged with Concho Resources and Chevron acquired Devon Energy.

In recent years, shale oil shareholders have indeed demanded higher returns, and the epidemic crisis that swept the industry last year will only exacerbate these requirements and prompt shale oil companies to re-adjust their priorities.

During the last round of economic downturn in 2014-2016, shale oil producers also promised to control production growth and return more cash to shareholders.

At present, radical shareholders who are vying for a seat on the board to transform oil and gas companies and are not focusing too much on oil and gas are targeting the super giants.

Hao Fen translated from oil price network

The original text is as follows:

The US Shale Patch Could Be In For Another Wave of Mergers

After last year saw some huge deals in the US shale space, with ConocoPhillips merging with Concho Resources and Chevron buying Devon Energy, among others, it looks that this year will see a continuation of the M&A trend.

Shale oil shareholders have indeed become more demanding about returns lately, and the pandemic-driven crisis that shook the industry last year only served to sharpen these demands and prompted shale companies to reorganize their priorities.

During the last downturn in 2014 to 2016, shale producers also promised to rein in production growth and return more cash to shareholders.

For now, activist shareholders vying for board seats to make oil and gas companies mend their ways and stop being so much about oil and gas are targeting the supermajors.