Investment firm EnCap has merged two of its portfolio companies to create a shale oil producer in the Permian worth $4 billion, Reuters has reported , citing unnamed sources familiar with the matter. Advance Energy Partners and Ameredev II both operate in the Delaware Basin and, according to the report, will see total Permian oil production reach 5 million bpd for the first time as soon as next month. The merger of the two will result in one of the largest privately held players in the Delaware Basin at a time when the shale oil industry is undergoing the latest consolidation drive. This consolidation could accelerate in the near future as the recent increase in oil price volatility motivates more companies to merge or sell assets, especially amid equally increased uncertainty about the long-term future of the oil industry stemming from the global emissions-cutting drive. Consolidation is one way […]