Navigation Links
Bender Consulting Predicts Key Trends and Merger and Acquisition Activity for the Oil & Gas Sector in 2010
Date:1/16/2010

AUSTIN, Texas, Jan. 7 /PRNewswire/ -- Bender Consulting, a premier boutique consulting firm, today announced its predictions for key trends and merger and acquisition (M&A) related activity that will have the biggest impact on the oil and gas sector for 2010. Bender Consulting combines proven industry experts and world-class consulting resources to execute complex transformation initiatives for High Tech, Energy and Bio Tech clients. The talent at Bender Consulting has been involved in major mergers, acquisitions, deals and restructuring for many years. John Bender, managing director and founding partner of Bender Consulting, was a key player in the HP-Compaq merger in 2001.

"We expect 2010 to be an exciting year in the energy sector," said Jonathan Dison, managing director and partner for Bender Consulting. "Climate legislation will continue to be a key issue for all the energy companies - both upstream and downstream. Additionally, we expect to see acquisitions similar to Exxon's purchase of XTO Energy as the year unfolds."

Key M&A Trends for the Oil and Gas Sector in 2010:

  • Acquisition of Proven Reserves:
    • Supermajors will look to buy reserves in 2010. U.S.-based reserves will be particularly attractive - and will cause a premium price, similar to the XTO purchase by Exxon.
    • Natural gas will be an increased player in the nation's energy future and will be an acquisition focus. The same holds true for the oil sands in Canada.
    • Devon is still a likely target for Exxon because the belief is Exxon will have the cash to expedite exploitation of the reserves.
    • Smaller private equity money will begin to flow back into the upstream market (increasing throughout 2010). Capital markets will continue to loosen during 2010.
  • Carbon Legislation Plays a Role:
    • A cause for increased acquisition activity on the upstream side.
    • On the downstream side, it will cause uncertainty - and a "wait it out" mentality. Cap and trade could lead to distressed downstream assets on the market - Valero, Sunoco, Tesoro and other independent refiners could be acquired.
    • U.S. supermajors will not likely increase acquisition of foreign downstream assets. Far reaching legislation could push supermajors toward exiting the downstream business - or drastically optimizing it to maintain outlets and full value chain insight.
  • "Shrink to Grow" Downstream Mentality:
    • Supermajors will continue to optimize and reduce downstream headcount and markets of operation. Result will likely be net job loss.
    • While tight margins and cap and trade complexity will push supermajors to strongly consider exiting the downstream business, our prediction is that they will remain in order to maintain their brand and knowledge gained from exposure to the full value chain. We anticipate that they will look to build capability to further exploit "full value chain knowledge" for profit (ex: increased trading for profit; strategic market acquisition, etc).
    • ConocoPhillips will not be acquired. New international refining capacity (China and India) will continue to squeeze refining margins. Again, combining this with the "unknown" of cap and trade creates an environment of too much complexity to acquire new downstream assets.
    • Independent Refiners (Valero, Sunoco, Tesoro, etc.) could be in trouble. Depending on the degree of cap and trade legislation, this current business model may require drastic transformation or it could become extinct. It's hard to see how they could survive significant legislation.
  • Reducing Risk is a Priority:
    • Trading value at risk (VAR) exposure will be minimized in 2010 as executives do not truly understand trading and will look to minimize exposure.
    • As usual - the oil and gas industry will be behind any economic upswing.

Jonathan Dison continued, "It will be interesting to see what happens with independent refiners, such as Valero, Sunoco and Tesoro. Significant carbon legislation could be extremely harmful and unsustainable for their current business models."

About Bender Consulting

Bender Consulting is a specialized management consulting firm helping High Tech, Energy and Bio Tech clients efficiently complete complex business transformations involving strategy, organizations, processes and systems. Their unique business model gives clients access to experienced CxO's, E/VPs, and directors - along with some of industry's best consulting resources - for less cost than other firms. The company was founded in 2004 and has offices in Austin, Houston and the Bay Area. For more information, visit: www.bendercon.com


    For More Information, Contact:
    Andy Prince
    512-289-4728mailto:
    andy.prince@porternovelli.com

SOURCE Bender Consulting

RELATED LINKS
http://www.bendercon.com

'/>"/>

SOURCE Bender Consulting
Copyright©2010 PR Newswire.
All rights reserved

Related biology technology :

1. eBioscience Acquires Bender MedSystems; Business Combination Adds Cutting-Edge Product Lines and Expands International Operations
2. Cadient Interactive Announces the Launch of HATCH Consulting Services
3. Double Helix Consulting Enhances its Strategic Product Commercialization Services with Appointment of Michael Rizzo as Vice President
4. North Highland Ranks in Top Five of Consulting Industrys Best Firms to Work For
5. Record Revenue Growth for Medical Device Software Consulting Firm Full Spectrum Software
6. Abidance Consulting Partners with the FBI
7. PAREXEL Consulting Releases New Study Data on Drug Development Timelines in Safety First Era
8. Clinical Trials Move to Emerging Regions, Heighten Need for Local Risk Consulting: Aon Global Risk Map
9. New Jersey Surgery Centers Pick Health Informatics Consulting to Implement Patient Electronic Health Record Systems
10. Biosciences Firm Chooses CloudCraze for eCommerce Business Solution -- LI-COR and EDL Consulting Take Expertise into the "Cloud"
11. Global One Consulting Announces Exclusive Contract to Expand Saigene Biotech, Inc. Sales in Emerging Markets
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:4/20/2017)... Dutch philosopher Koert van Mensvoort - founder of the Next Nature Network ... - has written a ,Letter to Humanity, in support of International ... a slave and victim to its own technology, but to employ technology to ... ... – founder of the Next Nature Network and Fellow of ‘Next Nature’ at ...
(Date:4/19/2017)... ... April 18, 2017 , ... The Vibrating Orifice Aerosol Generator ... generating monodisperse droplets of known diameters for research applications such as for calibrating ... by drying monodisperse droplets. , The VOAG requires forcing liquid out of ...
(Date:4/19/2017)... ... 2017 , ... Optofluidics today announced that it's changing its ... changed focus to making analytical tools for biopharmaceutical quality control. “We are excited ... Robert Hart. Founders Bernardo Cordovez, Robert Hart and David Erickson have steered the ...
(Date:4/19/2017)... , ... April 19, 2017 , ... ... difficile (C. diff) infections through education and advocacy. Founded in 2010 in ... a C. diff infection, the foundation has become the most-consulted source for patient-focused ...
Breaking Biology Technology:
(Date:4/11/2017)... Fla. , April 11, 2017 ... and secure authentication solutions, today announced that it ... Intelligence Advanced Research Projects Activity (IARPA) to develop ... Thor program. "Innovation has been a ... IARPA,s Thor program will allow us to innovate ...
(Date:4/11/2017)... MELBOURNE, Florida , April 11, 2017 ... "Company"), a security technology company, announces the appointment of independent ... John Bendheim to its Board of Directors, furthering the ... ... behalf of NXT-ID, we look forward to their guidance and ...
(Date:4/5/2017)... , April 5, 2017 Today HYPR ... that the server component of the HYPR platform is ... providing the end-to-end security architecture that empowers biometric authentication ... HYPR has already secured over 15 million users across ... manufacturers of connected home product suites and physical access ...
Breaking Biology News(10 mins):