Shale mergers bring billions to Rocky Mountains
Merger and acquisition activity relating to shale gas has brought billions to the Rocky Mountains.
During 2011, merger and acquisition deals relating to tight-sands and shale formations in the Rocky Mountains generated $9.9 billion (£6.25 billion), a study detailed in the Denver Post revealed.
The investigation - which was undertaken by accounting and consulting enterprise Deloitte LL - found this is 32 per cent higher than what was seen in 2010.
Overall, the majority of these deals - which may have required negotiation techniques - were for oil-field properties, with a total value of $7.2 billion.
Others related to infrastructure projects enabling gas and oil to be processed and moved, which accounted for $2.3 billion, while other services amounted to $200 million.
"It is clear people are really focused on these oil-rich plays," the company's portfolio leader for the mid-Americas Roger Ihne was quoted by the news source as saying.
By 2025, the number of workers employed in the shale industry of the US could grow by one million, PwC recently remarked in a document called Shale Gas: a renaissance in US manufacturing.
Posted by Ron Maverick
Source: Denver Post, February 8th