While European oilers such as BP PLC (LSE:BP.) and Shell PLC (LSE:SHEL, NYSE:SHEL) are expected to splash the cash from the recent oil price windfall on share buybacks and inflated dividends, their American counterparts are seen as a little more gung-ho.
The rumour in the US has always been that big beasts would use their over-endowed balance sheets to make acquisitions.
That thesis appears to have been confirmed if a report carried by the Wall Street Journal turns out to be true.
The financial gossip sheet reckons Exxon Mobil Corporation is considering the acquisition of US shale oil producer Pioneer Natural Resources (NYSE:PXD) Co, which is currently valued at just over US$51bn.
The discussions have been informal and Exxon executives have also discussed a potential tie-up with at least one other company, the WSJ said.
Exxon sees Pioneer as a top target for utilizing its windfall profits, though the talks may not result in formal negotiations or a deal.
It posted record earnings of US$55.7bn last year and had US$29.6bn in cash and equivalents by year-end.
Rival Chevron Corporation (NYSE:CVX) is also seen as keen on joining the consolidation game with a recent research note citing it as a potential suitor for BP.
The London-listed oilers were higher in early trade, though this reflected a firmer crude price rather than the pricing in of an M&A premium.