Canada’s Oil Patch On Track For Biggest M&A Wave In A Decade

Nearly a decade ago, the Canadian Oil Patch recorded a major asset sale and consolidation wave as oil majors exited the oil sands in favor of higher margins in U.S. shale oil as well as environmental concerns amid the ESG investing craze. To wit, Shell Plc NYSESHEL sold the majority of its oil sands interests to Canadian Natural Resources Ltd. NYSECNQ in 2017 a transaction valued at roughly $11.1 billion CAD $8.5 billion USD, while Cenovus Energy NYSECVE acquired most of ConocoPhillips'NYSECOP Canadian assets for C$17.7 billion approximately US$13.2 billion. And now a similar dynamic is unfolding across Canada's energy sector Canada's oil patch has recorded over $30 billion in mergers and acquisitions so far in the current year, with Wall Street projecting that this year's final tally will surpass the $53 billion recorded in 2017.