Oil and gas.

Oil and Gas: A survey of 384 financial executives at US energy companies conducted by KPMG indicates that merger and acquisition activity in the sector will continue to increase. Twenty-eight percent of survey respondents said they expect their companies to be involved in a merger or acquisition

in the coming year. Shrinking petroleum reserves are a serious concem for the industry, according to 83% of those surveyed, and price volatility was considered a negative for the industry by 58% of respondents. Of the companies planning to increase their credit ratings this year, 45% said they would do so by reducing debt, 39% said they were increasing exploration in order to secure new oil reserves, and 30% said acquisitions would bring new reserves. The biggest financial issue facing their companies, according to 49% of those surveyed, were the cost of materials, supplies and equipment, while 20% cited economic conditions.

Source: Financial Times