Exxon, Chevron deals set to boost oil production, CCS
Chevron’s announcement Monday that it is planning to purchase competitor Hess for $53 billion is underscoring confidence among oil majors that fossil fuels will remain the dominant energy source for a decade or more.
The all-stock purchase is slated to be the fourth-largest oil production deal of all time. It follows another massive oil shake-up on Oct. 11, when Exxon Mobil announced that it intended to acquire Permian-production powerhouse Pioneer Natural Resources in a deal valued at about $60 billion.
Related Knowledge Center: ENERGY BASICS: petroleum
While electric-powered vehicles may be the ride of the future, oil remains at least for now the dominant fuel for transportation around the world. And after a period of time at the end of the 20th century when oil was subject to wide fluctuations in price, new supplies in North America as a result of non-conventional recovery techniques have helped stabilize prices.
Related Knowledge Center: Carbon capture
The federal government is investing heavily in the development of carbon capture and storage (or sequestration), which offers the enticing prospect of preventing carbon dioxide emissions produced during combustion from entering the atmosphere and contributing to climate change. But the technologies involved, while proven, remain expensive, an obstacle to widespread adoption.