Sunday, February 19, 2012

Private equity follows oil price gains

Private equity investments in oil and gas has completed almost $25 billion in deals  versus $8.5 in 2010. The value of deals increased by 17%.  Oil and gas deals peaked at $65.7 billion in 2007 and then fell off a cliff for the last three years. Merger and acquisition deals increased 3 times form $28.5 billion in 2008 to $106.4 billion in 2011.  The bi money may have been made as supply increases and competition stiffens. The next move in oil may be down so assumptions of 10+% gains in price may be overly optimistic.

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