The prospect of mega transatlantic oil mergers is less likely after Exxon Mobil and Chevron announced major acquisitions focused on the Americas this month.
Exxon Mobil agreed to acquire Pioneer Natural Resources for $25 billion, while Chevron agreed to acquire Noble Energy for $5 billion. These deals are expected to give the two U.S. oil giants a stronger foothold in the Permian Basin, the largest oil-producing region in the United States.
The deals also come at a time when the European oil majors, such as BP and Shell, are under pressure to reduce their carbon emissions and invest in renewable energy. As a result, they are less likely to be interested in making large acquisitions.
In addition, the regulatory environment for mergers and acquisitions has become more challenging in recent years. For example, the European Commission has blocked a number of proposed mergers in the telecommunications and energy sectors.
Overall, the outlook for mega transatlantic oil mergers is less likely. The recent deals by Exxon Mobil and Chevron suggest that the U.S. oil giants are more focused on consolidating their positions in the Americas. The European oil majors are also under pressure to reduce their carbon emissions and invest in renewable energy, which makes them less likely to be interested in making large acquisitions. The regulatory environment for mergers and acquisitions has also become more challenging in recent years.
Here are some additional factors that could make mega transatlantic oil mergers less likely:
The increasing cost of developing new oil and gas resources.
The growing popularity of renewable energy sources.
The increasing pressure from governments and investors to reduce greenhouse gas emissions.
It is important to note that the oil and gas industry is constantly changing, and it is difficult to predict the future. However, it is likely that mega transatlantic oil mergers will become less common in the coming years.