Oil companies have had a rough attack ever since the epidemic sent its main product to a tailspin. In an effort to maintain dominance in a rapidly changing world, two of America’s largest oil companies Exxon and Chevron apparently weighed in on a blockbuster merger.
The Wall Street Journal reported Sunday night that Darren Woods and Mike Weirth, who are CEOs of related companies, held secret talks last year about what would be one of the largest corporate mergers in history. The newspaper said that the talks were “preliminary and ongoing, but may return in the future.” The weight of a merger of two companies (Exxon is third while Chevron is fifteenth) near the top of the Fortune 500 should tell you how fast the oil industry is changing as the sun oil era begins. .
This year was already taking a shape that would define the trajectory of the fossil fuel industry for the coming years. The news of the Exxon and Chevron merger only confirms this. Both companies have seen their flames dim over the past decade, and the epidemic has cut off the oxygen they need to burn even faster. The economic stagnation that followed last spring led to a drop in oil demand and prices. The oil and gas industry closed exploration leaks, went behind on debt, and shed more than 100,000 workers last year. Smaller firms grew in belly while the larger ones in the US and Europe faced losses of billions of dollars. Oh, and every major US bank also went out of its way to discover the oil of money in the Arctic, one of the most risky and most potentially harmful forms of extraction on Earth.
After 92 years on the index, Exxon fell due to the loss of its stove and lost the title to the largest oil company in the US, while Chevron took its place in relation to both, not that it is running anywhere where was it. Epidemic. Meanwhile, several revelations have also been made in the past, with its own analysts hoping that this could be permanently reduced. It is against this backdrop that Exxon and Chevron are reportedly considered to be a merger.
On the one hand, it is not surprising that all gave. According to the Wall Street Journal, on the other hand, these are two monster companies that, if merged, would be worth an estimated $ 350 billion. A twelve-figure merger does not normally occur, however, in everyday situations.
But the epidemic has evaporated everyday situations. Therefore, there is also a climate crisis. The world must cut carbon pollution by 78% this decade to reduce the alarming levels of global warming and all attendant effects. To do so would require eliminating the use of oil and gas (as well as coal) and decarbonizing every area. Oil companies have a business model, which deals with carbon pollution. Get some breakthrough technology that does not exist to suck carbon from the sky, this line of business is incompatible with a habitable planet.
While European oil companies have made lukewarm overhead, at least about trying to clean up their carbon pollution, Chevron and Exxon have steadily climbed to continue their polluting business model. A theoretical merger may help them extract more oil at a lower cost. But in the end, it will either spoil the planet or leave them with heaps of worthless property (or both!).
In any case, the merger talks do not appear to go anywhere. Also, what shall we call this company? Chexon? Exxon? It seems wrong just on the basis of nomenclature.
With President Joe Biden replacing Donald Trump in the White House for a more oil and trade friendly, it is unclear how regulators will handle a major oil mega-merger. Biden last week promised to end a $ 40 billion subsidy for the industry and said he would take steps to protect oil workers from the industry’s continued decline rather than protect those in the C-suite. This leaves CEOs like Woods and Wirth in a difficult position, particularly Woods, who is under pressure from activist investors to address the company’s climate impact and take a new course. Which honestly, cannot happen to a good man.