Oil industry consolidations will create stable prices: Analyst

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Oil Prices News

Oil Industry,Jason Gabelman,Marathon Oil

The oil industry is seeing major consolidations at play as Hess (HES) shareholders approved a $53 billion merger with Chevron (CVX), and ConocoPhillips (COP)...

"We think it creates a more healthy environment for our shareholders," Gabelman explains. He says that the mergers will lead larger companies to have more control of the oil in the US, which will ultimately allow them to execute"moderate, low-to-mid single-digit oil production growth that should result in a healthier commodity backdrop where there will be less responsive to spikes in oil prices and support higher and more stable oil prices.

So you'd have prices tick up and companies would start to drill more that resulted in depressed and more volatile oil pricing and less returns available to shareholders. TORONTO — Hitachi Rail says it is adding around 1,000 employees in Canada through its $2.5-billion acquisition of Thales' Ground Transportation Systems.

 

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