The oil and gas service sector has attracted the attention of many a deal makers in the country and all of them are trying to get as many merger and acquisition contracts to close as quickly as possible. In the past couple of years, a lot of businesses have made investments in companies that serve the oil and gas sector such as compliance companies, equipment manufacturing firms, software groups and so on.
Recently we caught up with a CEO of a waste management company that has also acquired a company in the oil and gas service sector. We decided to interview him and gain a deeper insight into the present market situation. The CEO told us that the popularity of hydraulic fracking has exploded, which is why so much focus is being made on this sector right now. As such there are so many opportunities out there, and they are definitely worth an investment.
The CEO shared with us that it had been quite some time since they were looking for an opportunity. After a lot of efforts, luck finally sided up with them and they conducted a deal with a company that appeared very promising. The organization which they have acquired uses hydraulic fracking technology for producing oil. They utilize many wells for this that produce water in huge amounts. These quantities of waters have to be managed, and this was made easier by conducting a deal.
From the talk that we had with the CEO, we gathered a few reasons as to why the oil and gas service industry is so popular right now. Hydraulic fracking and shale oil are two factors that have increased the demand of water management and disposal. The utilized technology results in an emersion of both oil and water from the wells. This water is extremely dirty and polluted and cannot be left on the surface; it has to be injected into the earth once again through special procedures.
As oil wells age, they produce even larger quantities of water, which has led to an increase in demand. Many businesses have realized this and are keen to cash in on the opportunity.
Deals are taking place in other subsectors as well of the oil and gas industry. Hopefully, they will have a positive effect on the merger and acquisitions market.
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