· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on The New York Times or enjoy below:
🗞️ Driving the news: The oil industry is witnessing a new wave of consolidation, with Chevron's $53 billion takeover of Hess coming shortly after Exxon Mobil's $59.5 billion bid for Pioneer Natural Resources
🔭 The context: Despite facing pressures from climate-conscious policymakers, investors, and activists, companies like Chevron and Exxon are able to make significant acquisitions by virtue of their financial strength and rising oil prices
• Their share prices have been on an upward trajectory, making them attractive for mergers and acquisitions
🌍 Why it matters for the planet: The ongoing consolidations in the oil industry could lead to increased fossil fuel production and consumption
• While European oil giants have been emphasizing carbon emission reductions, their potential shift to match the strategies of their American counterparts
• The environmental implications of these industry shifts are significant, as they could impact global carbon emissions and the pace of the energy transition
⏭️ What's next: Speculations suggest that midsize American shale producers are on the prowl for acquisitions, with Devon Energy considering Marathon Oil and CrownRock, and Chesapeake contemplating a bid for Southwestern Energy
💬 One quote: "We’re not only locking in and preserving the value we’ve created over the last several years but we still participate in the upside that you’re talking about," (John Hess, CEO of Hess)
📈 One stat: The recent Chevron-Hess deal is valued at $53 billion, indicating the scale and potential of industry consolidation
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