Dealmaking in the U.S. oil patch has dramatically slowed in 2025, Reuters reports, with M&A activity falling to just $17 billion in the past quarter—down sharply from the $144 billion frenzy seen in Q3 2023.
With benchmark crude slipping to around $55 a barrel, oil producers are turning inward, focusing on squeezing value from previous acquisitions rather than pursuing new ones.
Trade tensions and political uncertainty under President Trump are further dampening the appetite for deals, while many top-tier Permian assets have already been claimed, leaving less-attractive acreage on the market.
Even giants like ExxonMobil are pausing, emphasizing value creation over expansion for its own sake.
Analysts say dealmaking may stay muted through midyear unless trade developments ease recession fears. The challenge ahead: finding acquisitions that offer true operational synergies—not just scale.
As one executive put it, “nobody wants to dilute their portfolio” in a volatile, margin-sensitive environment.
