Big Oil Doubles Down on Fossil Fuel Despite Clean Energy Shift

  • 📰 YahooFinanceCA
  • ⏱ Reading Time:
  • 54 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 25%
  • Publisher: 63%

Energy Energy Headlines News

Energy Energy Latest News,Energy Energy Headlines

Exxon's $60 billion deal to buy Pioneer and Chevron's $53 billion tie-up with Hess sends a clear message: big oil is investing in fossil fuel despite the shift to clean energy. The International Energy Agency's prediction of oil demand peaking by 2030 raises questions about the rationale for increased spending on fossil fuel. However, the transition to clean energy is a long and expensive process, which explains why oil giants are not diversifying into clean energy projects.

Exxon’s $60 billion deal to buy Pioneer and Chevron’s $53 billion tie-up with Hess sends a clear message to investors: The world may be shifting to clean energy, but big oil is doubling down on fossil fuel.

"There's going to be an energy transition, but it's going to be a lot longer, it's going to be a lot tougher, and it's going to be a lot more expensive," Wells Fargo senior energy analyst Roger Read warned on Yahoo Finance Live. "And if you look at that aspect of it, it speaks to why you would invest in oil and why Exxon would do this transaction.

The gradual decline is a result of a "disconnect between the developing and developed world," Greg Beard, who was Apollo Global Management’s Head of Energy for over a decade, told Yahoo Finance. "In the transition to greener energies, we are still going to need oil and natural gas for some time… this basically ensures that those assets will be developed in a way that's cleaner and with a lower production cost," Essner said. "By combining companies, they’re able to rapidly increase shareholder buybacks and dividends… which the free market can ultimately invest in green technologies."Dozens of elephants mysteriously dropped dead in Zimbabwe.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 47. in ENERGY

Energy Energy Latest News, Energy Energy Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Oil demand's big picture on clean energy pushes, mergersMassive mergers between 4 major oil companies have been announced in October alone — Chevron’s (CVX) proposed buyout of Hess (HES) for $53 billion...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Oil & solar: Where to buy during energy transitionOil (BZ=F, CL=F) rose this week on escalations in the Middle East. Solar stocks, on the other hand, saw a their shares prices decline despite the green...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Former Russian President Medvedev Criticizes Europe's Energy CooperationDmitry Medvedev, Russia's former president, criticizes Europe's decision to walk away from energy cooperation, stating that it is frozen or pointless due to Europe's poor growth prospects.
Source: SaltWire Network - 🏆 45. / 63 Read more »

Former Russian President Medvedev Criticizes Europe's Energy CooperationDmitry Medvedev, Russia's former president, criticizes Europe's decision to walk away from energy cooperation, stating that it is frozen or pointless due to Europe's poor growth prospects.
Source: SaltWire Network - 🏆 45. / 63 Read more »