Behind the Money
Big Oil’s big bet
Podcast summary created with Snipd AI
Quick takeaways
- Chevron's acquisition of Hess focuses on incorporating valuable oil assets off the coast of Guyana, while Exxon's acquisition of Pioneer Natural Resources allows them to produce cheaper oil and continue production for decades in the Permian Basin.
- Despite predictions of declining fossil fuel demand, oil majors like Chevron and Exxon are betting on oil's longevity due to the developing world's reliance on affordable energy and their desire for cheap oil.
Deep dives
Growing skepticism about the decline of fossil fuels
Despite the International Energy Agency (IEA) predicting that fossil fuel demand will peak by the end of the decade, some oil and gas companies like Chevron and Exxon are doubling down on oil. Chevron acquired US oil and gas producer Hess, while Exxon purchased pioneer natural resources. These deals are occurring because oil majors are currently flush with cash, and acquisitions allow them to increase production without draining their cash reserves. The oil company executives believe that demand will remain strong as the developing world still relies heavily on oil for cheap energy. Investors generally see these acquisitions as positive moves, while environmental groups express frustration and view the acquisitions as contrary to climate goals.
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