Merger and acquisition (M&A) activity in the oil sector has historically depended on the advice of investment banks, according to a new industry report.

Research organisation GlobalData argues that, in recent years, oil companies have looked to investment banks to identify their best prospects for M&A deals.

Since 2007, for example, around $20 billion of transactions have been undertaken with the involvement of Merrill Lynch.

But with the economic turbulence recently seen by Merrill Lynch, Bear Stearns and Lehman Brothers, the availability of guidance to oil companies could be restricted.

Greater training on identifying trends in the industry and prospects for investment could be of growing importance in order to counter this fall in third-party advice.

And GlobalData notes that many firms have been looking to inorganic techniques - such as M&A transactions - in order to maintain growth in the mid-term.

Meanwhile, representatives from a number of UK oil and gas companies recently told a Scottish energy committee that they have no intention to stop offering safety training to their employees in light of the recession, the Press and Journal reported.

Oil and Gas Directory: Training and Development