A new year always signifies the dawn of business opportunities. In the oil and gas industry, the prospects for potential takeovers are set off. Recent years have been unkind to the market; with various political junctions and new frontiers for energy exploration at the back burner, industry analysts are adopting an optimistic stance about 2017.
The end of 2016 saw a surge in deal activity, mostly among private companies. Some mid-sized publicly traded companies foresee stronger growth at the beginning of 2017. Additionally, these mid-sized companies are strategically placed in core areas such as the Permian, Anadarko, and Appalachian Basins. Some even have stakes in the Bakken and Niobrara areas. Such existing circumstances will play a role in evolving the oil and gas industry, particularly as demand for cheaper, more efficient yet lucrative mines is peaking.
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Of particular interest are companies able to integrate their systems into an online environment. Cloud computing technology is a rapidly growing trend, and many oil and gas companies are migrating processes previously handled by significant portions of their workforce into the cloud. This shrinks the pool of employees, thereby lessening expenses. But it also expands market reach toward other parts of the world.
Globalization is not a new topic, but oil and gas companies are awakening to its impact and seeming inevitability. It has never been more important for businesses to achieve real-time interactions among themselves in critical moments.
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Mid-sized companies are slated to be part of the expected takeover round during the first quarter of 2017.