According to a recently-released report titled "Financing the Future Energy Landscape: Private Equity Trends in Oil and Gas" by Ernst & Young and Mergermarket, a little over half of private equity executives are inclined to invest in the oil and gas industry. The report, of which its survey was participated by 100 respondents, revealed that 44% of the participants said the next driver of their investment activity is availability of financing, followed by global expansion at 36%.

EY is a leading assurance, tax, transaction and advisory services provider in the world, while Mergermarket is an independent intelligence service focused on Mergers and Acquisitions (M&A).

EY Global Deputy Private Equity Sector Leader Michael Rogers said in the report, "The oil and gas industry is in a period of major capital investment. PE firms are well positioned to be a key player in driving future growth of the industry. Fitting well into their evolving model, PE firms can leverage their operational and commercial insight, oil and gas sector expertise and financial discipline to influence outcomes."

A growing trend observed was the formation of funds that target specific subsectors in oil and gas, with 64% of the survey respondents saying that fund-raising opportunities in this sector will increase next year. 65% of the respondents, the report revealed, will be actively raising funds.

Moreover, investment in the emerging markets regions would get the highest attention from private equity over the next two years, with 82% of the respondents projected increased private equity activity in Latin America and 79% in Asia pacific, the report revealed.

EY's Global Oil and Gas Transaction Advisory Services Leader Andy Brogan added, "We are seeing an influx of capital investment into the emerging markets. The risk profile of emerging markets investments can be very different from those of developed markets. Companies are exercising caution, but optimism around the potential returns from acquisitions remains high."