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Articles: Which world are we preparing for: the one with oil industry still going strong or the one where we move towards clean energy sources?

All eyes are now on the two megadeals in the oil industry that are happening now: Exxon's acquisition of Shale rival Pioneer Natural Resources (USD 59.6 billion) and Chevron's acquisition of Hess (USD 53 billion) in Guyana. What does this mean for the chances to build sustainable world?

According to Rystad Energy we are now to see the trend of consolidation and big-money deals to increase in the sector. These deals signify the shift to a multi-year boom phase that should last well through this decade". Both energy behemoths believe oil demand has not yet peaked.  Last week International Energy Agency released its annual world energy outlook report that projects global demand for coal, oil and natural gas will hit an all-time high by 2030. "The transition to clean energy is happening world wide and it's unstoppable", Birol said in a written statement.  But based on their acquisitions, Chevron and Exxon are seemingly preparing for a different world than the IEA is portending.

Does Guyana have other choices to overcome poverty and increase its GDP? Guyana's economy is growing rapidly: 62.3 per cent last year according to the IMF, as oil revenues come in. These petrodollars are creating a source of funding that the government says will be used to improve social services, agriculture, manufacturing etc.<

These two deals show that the energy game is changing, but these companies are now navigating stormy waters of public opinion, climate change, investor's pressure and push for sustainability.

What does it mean for Net Zero targets? Share your thoughts.

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Aya Pariy
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This morning I read our member's @John Teahan 's  blog which I found very interesting. I also remembered this post shared earlier on "Which world we are preparing for?" mentioning those recent big takeovers by oil majors (Exxon and Chevron).

John's blog gives me hope. While most news outlets described these takeovers as signs of oil majors' confidence that fossil fuel output will not be hampered, John looks beyond what seems to be obvious.

John writes "When an industry is in decline, the natural response of the industry is to consolidate…It reflected the need to cut costs and find synergies to remain profitable as volumes declined. It reflected the fact that regulation and a change in consumer behaviour had fundamentally changed the industry forever".  John analyses the recent deals (Exxon and Chevron) further and states that neither company is willing to spend more money on exploring for new oil and gas assets, but both companies are focused on making their portfolios more flexible, low cost and resilient in the face of a transition that is undoubtedly underway".

It is my hope that out of all the discussions and debates, especially around fossil fuel economy and how to transition (including COP28), the most sensible and efficient strategy will emerge that will allow those companies to transition successfully.

Have a read here

If you have experience in this space, it would be great to hear your thoughts.