The sustained period of lower crude prices is creating more and more pressure on global oil companies to shape up or ship out.

BHP Billiton’s decision to sell off its US shale assets after a $7.2 billion write down last year is an example of the latter.

Two board members have stepped down at the Australian mining-to-oil group amid demands for a streamlining of operations.

Total is taking advantage of AP Moller-Maersk’s own decision to concentrate on core shipping functions and sell off its Maersk Oil arm.

The French oil major sees a chance to expand but also consolidate its North Sea business with the $7.4 billion Danish takeover.

Elsewhere, Russia's Rosneft has just concluded its $13 billion purchase of Essar Oil in India.

The Indian government is now looking at consolidating much of its state-owned oil and gas interests into one new Asian major. And on a national level even the world’s largest oil exporter, Saudi Arabia, is looking to raise cash with a 5% stake sale in Aramco.

The price of Brent crude has now been bumping along at around the $50 per barrel mark since those $118 highs three years ago.

Costs have been cut, investments reduced and write downs made, and now everyone is looking at different strategic options.

The hard-hit services sector is now awash with merger and acquisition rumour and action.

Wood Group, which has just reported a 77% collapse in quarterly profits, is in the final stages of a tie-up with Amec Foster Wheeler.

Offshore rig company Ensco has lined up a merger with Atwood Oceanics, while Transocean has bid for Songa Offshore.

WorleyParsons of Australia has repeatedly been linked with a potential takeover of Oslo-based Aker Solutions.

The shake up of the industry is not just negative and we can be sure there will be a long queue of large oil companies, small independents and private equity vehicles interested in BHP’s shale assets — even with an expected $11 billion price tag.

The irony is that the wider BHP is back posting stronger profits, as iron ore and some other commodity prices have risen strongly.

But the shale business was never a good fit and activist investors have been pushing the board to concentrate on core competencies.

There is no such pressure inside Total, just a desire to seize good opportunities when they arrive.

The Maersk deal brings an immediate 6% boost to overall group oil production volumes and puts more concentration on a relatively risk-free northern Europe area while bringing interesting options in the Middle East and Africa.

For instance, Total has just taken over operatorship of the Al Shaheen oilfield in Qatar and will benefit from former-operator Maersk’s intimate knowledge there.

But the main thrust of this deal will be the North Sea, where both players are strong. Maersk will for instance bring access to Norway’s Johan Sverdrup field.

The $7.45 billion takeover comes at a time when many big home grown names such as Shell and BP have been disposing of assets.

Shell, which completed its own $52 billion mega-merger of BG last year, has sold a $4 billion package of UK North Sea fields to private equity-backed Chrysaor, while BP recently sold its Forties pipeline alongside producing fields Magnus and Erskine.

Global M&A is currently hotter than a high pressure well. Expect more to come.

"The main thrust of this deal will be the North Sea, where both (Total and Maersk) are strong."

Weekly

Oil and gas sector ripe for M&A spree