Osmar Abib Sees 'Substantial' Oil Deals, Equity Issuance

The video discusses the allocation of CapEx budgets to US shale, with a focus on Exxon Mobil's investments. It explores private deals in the shale industry, M&A trends, and the challenges of valuations. The transcript highlights the high valuations in the Permian Basin and the substantial IPO backlog in the oil services sector. It also covers regional focuses like Eagleford and Bakken, and the future of IPOs driven by expected market improvements rather than current fundamentals. The discussion includes the impact of oil prices on IPOs and the importance of innovation and safety for smaller companies entering the market.

What is a significant challenge for big oil companies investing in the shale industry?

• High valuation issues

• Environmental regulations

• Lack of technology

• Shortage of skilled labor

Which region is noted for having high company valuations compared to others?

• Permian Basin

• Eagleford

• Bakken

• Delaware Basin

What is driving the expected recovery in the oil services sector by 2018?

• Increased activity and consolidation

• Significant price improvement

• Technological advancements

• Government subsidies

What factor is not primarily driving the current IPOs in the oil services sector?

• Investor perception

• Technological innovation

• Current market fundamentals

• Future improvement expectations

What do investors and customers reward in smaller companies going public?

• Size and scale

• Low prices

• High debt levels

• Innovation and safety