A new report by Goldman Sachs analyst Ruth Brooker focuses on the M&A environment in the oil industry. The collapse in oil prices has put many smaller oil companies in a precarious position when it comes to their balance sheets, and Goldman believes that oil majors could soon take advantage by going on a shopping spree.

Cash To Spend

According to Brooker, global oil majors currently have $150 billion of firepower than can be used for M&A and have the ability to defer another $325 billion in capex on marginal projects. With that much cash available for potential deals and up to 15 mnbls/d of production potentially available for purchase, Goldman believes a pickup in M&A activity in the oil & gas space will be coming soon.

Underexposed To U.S. Shale

The report indicates…

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