Mergers and acquisitions in the U.S. upstream oil and gas sector dropped for the third quarter in a row, totaling $9.7 billion in the third quarter, down 28% from the second quarter. The industry has been impacted by low crude prices, with U.S. crude futures averaging around $65 a barrel.

The decrease in U.S. dealmaking has been linked to the lack of opportunities in the Permian Basin, prompting E&P companies to explore other regions. Private equity firms with oil-weighted assets have faced challenges due to weak crude prices, hindering potential M&A opportunities.

In contrast, Canada’s upstream M&A activity has remained strong, with deals totaling nearly $12 billion in the first half of the year. Canada’s Oil Sands have a lower breakeven point compared to U.S. shale companies, allowing for profitability at oil prices that may cause losses for many U.S. firms.

Top takeovers in Canada included Whitecap Resources’ acquisition of Veren for $15 billion and CNRL’s purchase of Shell Plc’s stake in the Athabasca Oil Sands Project. However, Strathcona Resources recently terminated its bid for MEG after a higher offer from Cenovus Energy.

Read more at Yahoo Finance: U.S. Upstream Oil & Gas Dealmaking Falls Again Amid Low Oil Prices