As per the trusted sources of information, the sharp rebound in the Oil price to the highs of over two years is giving opportunities for a long-awaited opening to the companies and several private equity firms to give up the unlikable assets in the US Oil patch.
Moreover, about USD 6.9 billion worth of land parcel sales were announced at the beginning of the year 2021, which covers the value of USD 7 billion, which was recorded in the entire 2020, as stated by the data vendor Enverus. Amidst the pandemic in 2020, the US acreage sale witnessed a worse hit since the year 2006, after there was a decline in the energy prices due to the decrease in demand.
As per the reports, several more deals are on their way. In the United States, about USD 12 billion worth of land pieces is likely to come up for sale or are being prepared to come up in the market, as several investor bankers and industry experts claimed in their interviews.Further, there is a surge in the crude Oil prices in the US by 43% this year, reaching the highest point it has hit since October 2018.
The year has made some unlikable acreage popular and desirable for the small group of buyout companies along with some of the publicly listed energy companies who are ready to spend money.The firms that are looking forward to selling Oil and gas exploration are seeking to pay the debt and use the money for new drilling firms.