The rapid fall in oil prices in the last quarter of 2008 has dried up activity in the oil and gas sector. According to a new report produced by Australia's Pricewaterhouse Coopers, the total value of deals for the sector surpassed US$180.4 billion in 2008, an amount which is a far cry from the US$292.2 billion in 2007.
According to the Oil and Gas Deals 2008 report, the value of deals was down by 59 percent in the quarter ending December 2008 compared with the same period for 2007, and 72 percent compared with 2006.
Coal-seaming remained the only area of increased activity, with deals increasing from US1.7 billion in 2007 to US16.6 billion in 2008.
According to the report's commentary, large oil companies with cash reserves would continue to be on the look out for good opportunities for mergers and acquisitions.
