Chevron, America’s second-largest oil company, has announced it’s buying fellow US producer Hess for a cool $53B, the biggest deal in Chevron history.
Where’s the international intrigue?
- 🛢️ This is yet another big bet on oil, shrugging off the International Energy Agency’s recent forecasts that peak oil is on the horizon
- 🤝 It’s another sign the sector is consolidating, as more players struggle with higher interest rates and lower economies of scale, and
- 🇬🇾 It’s another big bet on Guyana (where Hess has a stake), with the South American country discovering 11 billion barrels of oil and gas in the past decade.
Intrigue’s take: Every past energy transition has been slow, uneven and contested. And we’ve generally seen more of an energy addition rather than transition: oil and gas overtook coal six decades ago, yet coal consumption has since tripled.
Stay on top of your world from inside your inbox.
Subscribe for free today and receive way much more insights.
Trusted by 119,000+ subscribers
No spam. No noise. Unsubscribe any time.
We say this not to claim how the world ought to be, but as a reminder of how it is. Speaking of which, there’s evidence we don’t have a lot of time.
Also worth noting:
- The IEA says about $2.8T will be invested in the global energy sector this year, with $1.7T going to clean tech and the remainder towards coal, oil and gas.
