The reports state that the industry has made more mergers and acquisitions in the first quarter of 2014 as compared to the same period in more than a decade. The consulting firm PricewaterhouseCoopers has released a report of the quarterly analysis of the deals that have taken place in the industry were above the tag of $50 million. The firm announced that 43 deals worth $19.8 billion have occured this year in the first quarter as compared the ot 41 deals in the first quarter last year.
Nearly a third, or 31% of the deals that have taken place in the first quarter have involved the booming business of extracting oil and natural gas from shale rock through drilling, a process commonly known as fracking.
PwC has said that the first three months of 2014 represent a historic first quarter across the span of 10 years. The tremendous start has been credited to the interest from foreign buyers and the focus on the explorations and the production of oil and natural gas that accounted for nearly two-thirds of the deal activity.
The consulting firm has said that they will be focusing on the shale operations that are being carried out and the that they expect the foreign interest to remain strong as the non-U.S. Investors are looking into the U.S. oil and gas industry for security of supply, low-cost resources and the technical expertise available in the industry.
Even though the industry saw the best first quarter in a decade, the number of mergers and acquisitions was actually lower than the statistics of the fourth quarter of 2013. The oil and gas industry saw 56 large deals take place in the fourth quarter last year that came to a total of $43 billion.