Energy Deals Shift to Renewables and U.S. Shale Bargains
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At a time when deal activity in the energy and natural resources sector has slowed dramatically—down 26.2% globally year-on-year—one development in particular may define the industry’s near-term future.
In mid-May 2020, French oil major Total opted not to pursue a deal, announced in 2019, to purchase the African assets of Anadarko Petroleum, a U.S. producer that was being acquired by Occidental Petroleum. Two weeks after it withdrew its $ 8.8 billion proposal for offshore oil and gas properties in Ghana, Total announced it would spend about $ 3.8 billion for a majority stake in a renewable energy project in the British North Sea. Total’s decision to move away from traditional oil and gas investments could be an indicator of what lies ahead for the industry.
The oil and gas sector was already on the brink of radical change before the COVID-19 pandemic crushed global demand for energy.…
