tomder55
Oct 24, 2023, 04:51 AM
One big energy company buying the assets of another giant oil and gas assets doesn't make much sense in the era of the green new steal.
And yet Chevron is going to invest $53 billion to that end.
Chevron buys Hess for $53 billion, 2nd megadeal in the oil patch this month as energy prices soar | AP News (https://apnews.com/article/chevron-hess-exxon-oil-merger-acquisition-37ff382d6fa713b7a1e887c7be5f1e93)
And they are not alone.
Exon Mobile has $60 billion it is using to merge with Pioneer
ExxonMobil announces merger with Pioneer Natural Resources in an all-stock transaction (https://corporate.exxonmobil.com/news/news-releases/2023/1011_exxonmobil-announces-merger-with-pioneer-natural-resources-in-an-all-stock-transaction)
Now part of this consolidation can be explained in that higher interest rates leave some of the smaller fish cash strapped.
And some of it can be explained in that despite Clueless Joe's appeasement of his radical base ;he knows his election chances could depend on the price of gas. And the dipsh*t has pretty much drained the reserve stockpile our country strategically accumulated when prices were lower. He has asked BIG OIL to bail him out . Actually he threatened them to drill baby drill ;pump baby pump.
Biden urges oil companies to boost supply, slams high profit margins as 'not acceptable' in new letter | CNN Politics (https://www.cnn.com/2022/06/15/politics/joe-biden-oil-companies/index.html)
The energy companies see the writing on the wall. They have spent considerable amount of time research and money investing in the green new steal. They aint stupid however. They know that for the foreseeable future our economy will be powered by fossil fuels .
Not So Fast, Euro Major BP Reconsiders Pace Of Energy Transition (forbes.com) (https://www.forbes.com/sites/daneberhart/2023/02/12/not-so-fast-euro-major-bp-reconsiders-pace-of-energy-transition/?sh=cbef93054a30)
Shell considers selling green energy stake in shift back to oil and gas (telegraph.co.uk) (https://www.telegraph.co.uk/business/2023/07/13/shell-fossil-fuel-pivot-consider-green-energy-business-sale/)
They used to talk about peak oil which meant that there was only so much oil in the earth. Peak renewables could be the demand for renewable power that may have already peaked .
The big energy companies did not get where they are by making the wrong bet in the direction of the market.
I don't think they are wrong here either. Governments that try to mandate the direction of the economy do not succeed .
And yet Chevron is going to invest $53 billion to that end.
Chevron buys Hess for $53 billion, 2nd megadeal in the oil patch this month as energy prices soar | AP News (https://apnews.com/article/chevron-hess-exxon-oil-merger-acquisition-37ff382d6fa713b7a1e887c7be5f1e93)
And they are not alone.
Exon Mobile has $60 billion it is using to merge with Pioneer
ExxonMobil announces merger with Pioneer Natural Resources in an all-stock transaction (https://corporate.exxonmobil.com/news/news-releases/2023/1011_exxonmobil-announces-merger-with-pioneer-natural-resources-in-an-all-stock-transaction)
Now part of this consolidation can be explained in that higher interest rates leave some of the smaller fish cash strapped.
And some of it can be explained in that despite Clueless Joe's appeasement of his radical base ;he knows his election chances could depend on the price of gas. And the dipsh*t has pretty much drained the reserve stockpile our country strategically accumulated when prices were lower. He has asked BIG OIL to bail him out . Actually he threatened them to drill baby drill ;pump baby pump.
Biden urges oil companies to boost supply, slams high profit margins as 'not acceptable' in new letter | CNN Politics (https://www.cnn.com/2022/06/15/politics/joe-biden-oil-companies/index.html)
The energy companies see the writing on the wall. They have spent considerable amount of time research and money investing in the green new steal. They aint stupid however. They know that for the foreseeable future our economy will be powered by fossil fuels .
Not So Fast, Euro Major BP Reconsiders Pace Of Energy Transition (forbes.com) (https://www.forbes.com/sites/daneberhart/2023/02/12/not-so-fast-euro-major-bp-reconsiders-pace-of-energy-transition/?sh=cbef93054a30)
Shell considers selling green energy stake in shift back to oil and gas (telegraph.co.uk) (https://www.telegraph.co.uk/business/2023/07/13/shell-fossil-fuel-pivot-consider-green-energy-business-sale/)
They used to talk about peak oil which meant that there was only so much oil in the earth. Peak renewables could be the demand for renewable power that may have already peaked .
The big energy companies did not get where they are by making the wrong bet in the direction of the market.
I don't think they are wrong here either. Governments that try to mandate the direction of the economy do not succeed .