Exxon and Chevron's recent acquisitions show that despite global decarbonization pushes, the energy transition is likely to be long and slow.
Less than two weeks prior, Exxon Mobil announced it was acquiring oil company Pioneer Natural Resources for $59.5 billion in stock.
But based on their acquisitions, Chevron and Exxon are seemingly preparing for a different world than the IEA is portending. "These companies believe in the long-term viability of the oil and gas industry because hydrocarbons remain the most cost-effective and easily transportable and storable energy source," Hiatt told CNBC.
"One might speculate that Exxon and Chevron are anticipating the European oil majors divesting their global reserves over the next decade due to European policy changes," Hiatt told CNBC. Also, sanctions of state-controlled oil and gas companies in countries like those in Russia, Venezuela and Iran are providing Exxon and Chevron a geopolitical opening, Jaffe said.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Chevron and Exxon Might Have Kicked Off an Oil Land GrabFew sizable targets remain after the oil supermajors’ mega acquisitions, setting off a scramble for what is left
Read more »
Chevron makes $53 billion deal for Hess, following Exxon’s big moveIt’s the second big buyout among major producers this month as oil prices surge - following Exxon Mobil's $60 billion deal for Irving-based Pioneer Natural...
Read more »
Analysis: Mega transatlantic oil mergers less likely after Exxon, Chevron dealsThe prospect of Exxon Mobil (XOM.N) or Chevron (CVX.N) buying European majors has receded after the two leading U.S. oil companies announced major acquisitions focused on the Americas this month, investors said.
Read more »
Analysis: Cash-rich Exxon, Chevron use stock for mega deals amid energy market jittersExxon Mobil (XOM.N) and Chevron (CVX.N) are flush with cash yet their acquisition targets are taking stock as the only form of payment, an arrangement that allows the two largest U.S. energy companies to clinch transformative deals despite volatile oil and gas prices.
Read more »
Exxon, Chevron Look to the West in an Increasingly Uncertain WorldThe oil majors are spending more in the Americas as international exploration becomes fraught with new risks
Read more »
Chevron to acquire Hess Corp for $53 billion in second big oil merger in a monthThe acquisition follows Exxon Mobil's acquisition of Pioneer Natural Resources just weeks ago.
Read more »