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Shell-BG Deal Puts Pressure on Big Oil to Consolidate Again

A photo of a refinery at the World Petroleum Congress in Madrid, in this July 1, 2008 file photo.

A photo of a refinery at the World Petroleum Congress in Madrid, in this July 1, 2008 file photo.

Photographer: Victor R. Caivano/AP Photo

In the words of Royal Dutch Shell Plc’s boss, the fundamental logic behind his decision to buy BG Group Plc “always existed.”

What pushed the $70 billion deal over the finish line was that it had become “very compelling from a value perspective” after oil prices fell by half to $50 a barrel.