WHAT'S HAPPENING: The oil sector appears ripe for some consolidation in 2009, particularly deals involving the cash-rich oil giants and struggling smaller producers.

WHY NOW: The oil majors are sitting on enormous piles of cash after posting record profits in recent quarters. At the same time, crumbling stock and crude prices have erased huge chunks of market value for some smaller producers and made them potential targets.

GROWTH THROUGH DEALS: Acquisitions are another way for Big Oil to secure new sources of fossil fuels, at a time when exploration and production is becoming increasingly difficult.