RE:AcquisitionsRallying oil prices have been driving increased mergers and acquisitions activity in the global upstream sector in recent quarters and are set to incentivize more deals in 2022. Deal-making and high-value deals in the sector returned in 2021 as commodity prices rebounded, international majors moved to divest non-core assets, and U.S. shale producers consolidated and built quality inventories of assets. If oil prices - currently at their highest since the autumn of 2014 - remain high, M&A activity has a good chance of booking a multi-year high this year, analysts say. The U.S. shale patch will likely continue driving deals value globally, and private equity-backed firms will continue to be important players in the upstream M&A deals. Yet, the new realities in the global upstream market suggest that private equity will not be the panacea for deal activity, although it will continue to be an option for companies looking to divest, Wood Mackenzie says.