Oil Deal Spend Hits Two-Year High Amid Seller's Market — SkimNews
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- Ultra-high-net-worth investors and family offices are increasing interest in mineral rights and oil and gas assets, fueled by Iran war energy pressures and the AI boom, but attractive deals are scarce due to competition from institutional investors and private-equity firms.
- Oil and gas deal spend for the first half of 2026 hit a two-year record according to Wood Mackenzie, with gas production project deal spend alone exceeding $32 billion — the highest level in over a decade.
- Brent crude has traded between $70.14 and $102 per barrel since early June, a roughly 45% spread, and jumped nearly 10% in a single July session, creating volatility that complicates dealmaking.
- Family offices can still carve out a niche in deals under $100 million, such as $30 million non-operated assets that are undervalued because few buyers focus on that size range, according to Baker Botts partner Cody Carper.
- Bank of America's Andrew Dock said investors are treating pipeline and export facility plays as a "structural shift" in energy demand rather than a cyclical commodity trade.
- Tolleson Wealth Management's Peter Suberlak said clients favor stakes in mature fields with producing wells for predictable cash flow and inflation hedging, not commodity-price speculation.
Why it matters: With H1 2026 oil and gas deal spend at a two-year high and gas deals alone topping $32 billion, family offices hunting for energy exposure are being pushed into sub-$100 million niches like $30 million non-operated assets — the only segment where attractive valuations still exist. Brent crude's 45% price swing since early June adds further transaction complexity for anyone trying to time an entry.
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