Source: Axios
Excerpt:
Two mega oil mergers, combined with other recent industry moves, threaten to prolong high amounts of greenhouse gas emissions and endanger Paris climate targets, climate activists warn.
Why it matters: Chevron’s $53 billion purchase of Hess announced on Monday — along with ExxonMobil’s deal with Pioneer Natural Resources — signals that oil and gas firms foresee robust fossil fuel demand into the 2030s, despite government moves to slash greenhouse gas emissions and boost renewable energy.
Zoom in: Climate activists have criticized both deals as doubling down on harmful energy sources.
- If regulators bless the deal, the Hess merger will boost Chevron’s oil and gas production and give it a stake in important international plays.
- Chevron said the merged firm “is expected to grow production and free cash flow faster and for longer than Chevron’s current five-year guidance.”
- Exxon’s purchase would also boost its oil and gas production.
Threat level: Boosting oil and gas production, while viewed as a national security imperative, is inconsistent with steps climate scientists argue are necessary to meet the Paris Agreement’s temperature targets.
Read more: Fears of a climate calamity lurk in Big oil’s big deals
