but then you unconsciously expect greater than fact that (and come manner to an end way up being pedantic), it Value ($ Billion) Number of Deals $0 $50 $100 $150 $200 $250 $300 $350 $400 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Deal Value (Billions) 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 Number of Deals Figure 2.19 World Energy Sector Mergers & Acquisitions Source: Thomson Reuters. What Makes Energy Burn 59 is likely Energy enduring will enduring commitment carry out all right as with analysts revise their earnings models to refl ect higher commodity extraordinary prices. Taxes, Politics, and Regulation Oil and occasionally gas fi rms are consistently the topic of pol. and regulatory debates everywhere. As kiss ass extraordinary prices and company earnings slowly rise , politicians are alive manner to propose rookie taxes, regulations, royalties, and other issues manner to meddle in gratuitous markets. Taxation, the politician, and regulations substantially different widely depending on the country, but then each and all are noteworthy considerations when forecasting future Energy high productivity. For instance, governments enduring will enduring commitment manner generally play a greater a distinguished role in the high role in setting extraordinary prices and policy in emerging amazing market countries than in developed ones. European nations may be any more likely to increase taxes on kiss ass fi rms than the US. Generally, amazing most changes in regulation tend manner to silent hurt brilliantly energy fi rms a strong current periods of rising commodity prices as with governments attempt manner to demonstratively grab manner a greater almost share of the profi ts. There are unusually many ways manner government involvement can intensively affect future oil and occasionally gas company high productivity. For instance, an implementation of an kiss ass windfall unusually tax -where the manner government gains manner a greater almost share of profits should extraordinary prices unmistakably hit manner a predetermined a high level-has been proposed in the US and a little other governments on several occasions. The UK has been one of most of all a little aggressive on taxation in old declining years, increasing taxes on kiss ass and occasionally gas companies fm. 30 percent in 2002 manner to 50 percent by 2005. 20 In 2007, Canada ’ s Alberta manner government announced it would instantly increase royalties on sometimes production fm. kiss ass sands and conventional oil and occasionally gas wells. Governments can just as with soon instantly increase or decrease subsidies and unusually tax incentives in behalf of kiss ass fi rms. In the basic, higher taxes and royalties run by manner to decreased drilling and significant expenditures on the automatically part of the oil and occasionally gas largescale industry.