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The chief executives of U.
S.
oil majors Exxon Mobil Corp and Chevron Corp discussed a merger between the two companies after the coronavirus outbreak last year, according to people familiar with the matter
.
▲ Exxon Mobil CEO Darren Woods according to the Wall Street Journal
▲ Exxon Mobil CEO Darren Woods according to the Wall Street JournalThe combined market value of the two companies could exceed $350 billion
.
The combined market value of the two companies could exceed $350 billion
.
According to the production level before the epidemic, its combined daily oil and gas production can reach about 7 million barrels, and in terms of market value and production, it will become the world's second largest oil company after Saudi Aramco
.
It is reported that the impetus for the two companies to discuss a merger is likely to come from the impact of the new crown epidemic on the oil and gas industry
.
Independent analyst Paul Sankey pointed out that by combining, the two companies could cut a combined $15 billion in overhead and $10 billion in annual capital expenditures
.
▲In 2020, the stock prices of both companies fell sharply according to the Wall Street Journal
▲In 2020, the stock prices of both companies fell sharply according to the Wall Street JournalExxon Mobil has a market value of $190 billion and Chevron has a market value of $164 billion.
The combined size will reach $350 billion, making it the world's second-largest oil company by market value and production, after Saudi Aramco
.
Exxon Mobil has a market value of $190 billion and Chevron has a market value of $164 billion.
At pre-pandemic levels, the combined company could produce about 7 million barrels a day of oil
.
The deal would be far bigger than the big oil mergers that took place in the late 1990s and early 2000s, including Exxon and Mobil, Chevron and Texaco Inc.
It could also be the largest corporate merger ever
.
If the deal goes ahead, the two largest oil companies spun off from Standard Oil Monegority will be reunited and could reshape the oil industry
.
Under a Biden administration, however, such a merger could face regulatory and antitrust challenges
.
Under a Biden administration, however, such a merger could face regulatory and antitrust challenges
.
President Biden said climate change is one of the biggest crises facing the United States, and he will push the U.
S.
energy industry to "transform from the oil industry
.
"
S.
energy industry to "transform from the oil industry
.
"
Traditional energy accounts for about 90 percent of U.
S.
energy production, and Biden-era policies could have some impact on traditional industries
.
S.
energy production, and Biden-era policies could have some impact on traditional industries
.
Still, a merger agreement is still possible between the two companies, as Biden has yet to show a strong stance on antitrust issues and the Biden administration has yet to nominate the head of the Justice Department’s antitrust division
.
.
Consolidation could make the industry more efficient, Worth said in an interview on Friday discussing Chevron's performance
.
.
But he only spoke in general terms, and did not say more about the possibility of a merger between Exxon and Chevron
.
.
"Larger mergers have happened before
.
Time will tell," said Worth
.
But now, they do have that vision
.
.
Time will tell," said Worth
.
But now, they do have that vision
.
Many countries are seeking to reduce their reliance on fossil fuels to combat climate change
.
But Exxon and Chevron have not made substantial investments in renewable energy, opting instead to double their investment in oil and gas
.
.
But Exxon and Chevron have not made substantial investments in renewable energy, opting instead to double their investment in oil and gas
.
Both companies believe that the world will still need large amounts of fossil fuels for decades to come, and they can profit from the current underinvestment in oil production
.
.
