Exxon and Chevron’s recent acquisitions show that despite global decarbonization pushes, the energy transition is likely to be long and slow.
Less than two weeks prior, Exxon Mobil announced it was acquiring oil company Pioneer Natural Resources for $59.5 billion in stock.
But based on their acquisitions, Chevron and Exxon are seemingly preparing for a different world than the IEA is portending."The large companies — nongovernment companies — do not see an end to oil demand any time in the near future. That's one of the messages you have to take from this. They are committed to the industry, to production, to reserves and to spending,""They're in this in the long haul. They don't see oil demand declining anytime in the near term.
Also, while electric vehicles are growing in popularity, they are just one section of the transportation pie, and many of the other sections of the transportation sector will continue to use fossil fuels, said, senior research scholar and board member at Columbia University's Center on Global Energy Policy. Kah was previously the chief economist of ConocoPhillips for 25 years.
"One might speculate that Exxon and Chevron are anticipating the European oil majors divesting their global reserves over the next decade due to European policy changes," Hiatt told CNBC. Also, sanctions of state-controlled oil and gas companies in countries like those in Russia, Venezuela and Iran are providing Exxon and Chevron a geopolitical opening, Jaffe said.
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