Heather Exner-Pirot, director of energy, natural resources and environment for the Macdonald-Laurier Institute, said the Canadian oilpatch saw a significant amount of consolidation in 2021 as the country began to emerge from the COVID-19 pandemic. But she said the deals that are happening now are very different.

"Immediately post-COVID it was a sign of weakness. There were some companies that just weren't going to make it and were vulnerable, and were ripe for the picking by those that were still strong enough to do it," she said.

Signs of strength

"Now what I think we're seeing are signs of strength. These companies have excellent balance sheets and the capacity to go and acquire and strengthen their empires."

South of the border, U.S. multinational oil giant Exxon Mobil Corp. announced last week it will acquire Pioneer Natural Resources in a US$59.5 billion mega-deal.

That merger has been interpreted by many industry watchers as Exxon demonstrating its confidence in fossil fuels, even as the world continues to seek to transition to lower-carbon energy sources in order to slow the pace of climate change.

Exner-Pirot said she agrees with that assessment, and added that the global energy crisis sparked by Russia's invasion of Ukraine has brought investors flooding back to the industry on the assumption that fossil fuels will still be in high dem

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