Volatility and the oil industry go hand in hand but, after a year of high prices and fears of the next political calamity, bankers are declaring the sector ripe for a shake-up. They have been set to work to find acquisitions for eager clients.

Oil companies are sitting on a huge cash pile but mergers and acquisitions activity depends on the price of a barrel of oil falling from last year's peak of over $50. Bankers and analysts have predicted prices will fall to below $40, but many say a low to mid-$30s price would spark serious M&A activity this year.