Azerbaijan, Baku, 13 October / Trend / Devon Energy's president expects the current credit squeeze will force many midsize players in the oil and gas industry who are short of cash to merge in order to fund their operations, said Energy Intelligence Group.
"You're going to see a lot of consolidation among the intermediate group, midsize companies that will see an advantage in becoming larger size and having a larger scale and being able to take advantage of some of the economies of scale," Devon President John Richels told investors at the 2008 Oil & Gas Investment Symposium in San Francisco on Wednesday.
"A lot of people put together some pretty exciting and highly prospective assets and there is going to be a squeeze on their ability to be able to develop that," he added. "The likelihood of consolidation is going to be higher in the next few years than it has been."