The absent European boom

2005 was a great year for oil M&A – but not in Europe. While the volume of US oil deals more than doubled to $110bn, in Europe they barely grew to just $15bn. That looks odd. After all, conditions could hardly be more promising for M&A. Oil firms are bulging with cash. Crude prices are high, but costs are rising too, eroding returns. And fresh reserves are hard to find. Mergers would seem an obvious answer to these problems. By bulking up, Western oil firms could see off competitors better; cu...