{"id":2084436,"date":"2023-10-30T17:19:02","date_gmt":"2023-10-30T21:19:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/as-european-energy-companies-shift-to-renewables-us-firms-shore-up-oil-and-gas-supplies\/"},"modified":"2023-10-30T17:21:51","modified_gmt":"2023-10-30T21:21:51","slug":"as-european-energy-companies-shift-to-renewables-us-firms-shore-up-oil-and-gas-supplies","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/as-european-energy-companies-shift-to-renewables-us-firms-shore-up-oil-and-gas-supplies\/","title":{"rendered":"European energy companies are transitioning to renewables, while US firms focus on securing oil and gas supplies."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">34<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fas-european-energy-companies-shift-to-renewables-us-firms-shore-up-oil-and-gas-supplies%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2084436&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div data-post-content=\"true\" class=\"post_content\" id=\"post_content\">\n<p>While European oil\u2063 companies like BP and Shell have been promoting \u200btheir shift from fossil fuels to wind and solar technology, \u2062major U.S. oil companies \u2064ExxonMobil and Chevron \u200bhave been making significant acquisitions to ensure\u200c a steady supply of oil and gas in an uncertain world.<\/p>\n<p>&#8220;Chevron and ExxonMobil and others \u200care securing access\u200b to resources, especially in the United \u200cStates,&#8221; said Ryan Yonk, energy analyst\u2064 and senior faculty at the American Institute for Economic Research.<\/p>\n<p>The \u200bpurchase of Hess by \u200bChevron provides access to Bakken sites in\u200d North Dakota and a field in Guyana.<\/p>\n<blockquote>\n<h2>Related Stories<\/h2>\n<ul>\n<li>\n        <a href=\"http:\/\/www.theepochtimes.com\/article\/chevron-buys-hess-for-53-billion-2nd-buyout-among-major-producers-this-month-as-oil-prices-surge-5515126?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3>Chevron Buys Hess for $53 Billion, \u200c2nd Buyout Among Major Producers This Month as Oil Prices Surge<\/h3>\n<p>        <\/a><\/p>\n<p>10\/23\/2023<\/p>\n<\/li>\n<li>\n        <a href=\"http:\/\/www.theepochtimes.com\/article\/chevron-tops-estimates-with-1st-quarter-profit-gain-despite-slide-in-oil-prices-5228314?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3>Chevron Tops Estimates With 1st Quarter Profit Gain Despite\u200b Slide in Oil Prices<\/h3>\n<p>        <\/a><\/p>\n<p>4\/28\/2023<\/p>\n<\/li>\n<\/ul>\n<\/blockquote>\n<div class=\"my-5\">On Oct.\u2062 23, Chevron \u2063announced its acquisition of Hess for $53 billion in stock.\u200d This \u2062adds to Chevron&#8217;s operations in Colorado and Texas, with access to Bakken shale assets in North Dakota and the Stabroek block in Guyana.<\/div>\n<p>ExxonMobil also made a major\u2062 acquisition, purchasing Pioneer Natural Resources \u2064for about $60 billion. This merger combines\u2063 Pioneer&#8217;s assets in Texas&#8217;s Midland Basin with\u2064 ExxonMobil&#8217;s holdings in the Delaware and Midland basins.<\/p>\n<div class=\"my-5\">Industry analysts believe\u200c that these actions demonstrate the confidence\u2063 of U.S. oil companies in their future, despite efforts to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidenflation-gas-pump-prices-hit-7-year-high\/\" title=\"Bidenflation: Gas Pump Prices Hit 7 Year High\">reduce fossil fuel production<\/a>.<\/div>\n<h2>Gearing Up to &#8216;Meet Real-World Demands&#8217; for Oil and \u2062Gas<\/h2>\n<p>&#8220;Anyone who \u200cbelieves that \u200bfossil fuels will be phased out of the market in the next few decades \u2064is deceiving\u200d themselves,&#8221; said Benjamin Zycher, \u2062energy economist and senior fellow at\u2062 the American Enterprise Institute.<\/p>\n<div class=\"shortcode post-related-videos\">\n<div class=\"lazyload-wrapper\">\n<div class=\"lazyload-placeholder\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>The Energy \u2062Information Administration (EIA) \u200bprojects a modest but \u200bsteady 0.7 percent\u2064 growth in global demand for fossil fuels \u200cthrough 2050. However, energy executives believe that EIA \u2062projections underestimate the actual demand.<\/p>\n<div class=\"my-5\">Chevron CEO \u2062Mike Wirth stated that the company will continue to increase its oil \u200dand \u2062gas output, emphasizing that they are not selling an &#8220;evil&#8221; \u200cproduct but a necessary one.<\/div>\n<p>While\u2063 reducing \u2064emissions is important, it should\u2062 not\u200b come at the expense of affordable and reliable \u2064energy, according to Mr. Wirth.<\/p>\n<p>Aside from resource access, other \u2062<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/as-european-energy-companies-shift-to-renewables-us-firms-shore-up-oil-and-gas-supplies\/\" title=\"European energy companies are transitioning to renewables, while US firms focus on securing oil and gas supplies.\">factors driving industry consolidation include <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/janet-yellen-as-congress-for-billions-to-help-other-countries-debt-relief-climate-change-initiatives\/\" title=\"Janet Yellen As Congress For Billions To Help Other Countries\u2019 \u2018Debt Relief,\u2019 \u2018Climate Change\u2019 Initiatives\">higher interest rates<\/a><\/a> and the need for larger companies to defend against regulatory actions and lawsuits.<\/p>\n<div class=\"post-figure\" style=\"margin-left:0;margin-right:0;max-width:1200px\">\n<figure style=\"width:640px;margin-left:auto;margin-right:auto\" class=\"alignnone\"><figcaption>A combination of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/tennis-stars-pressure-mens-tour-to-join-wta-in-china-boycott\/\" title=\"Tennis Stars Pressure Men's Tour to Join WTA in China Boycott\">file photos shows<\/a> \u2062the logos of five of the largest publicly \u2063traded oil companies: BP, Chevron, ExxonMobil, Shell, and TotalEnergies. (File Photo\/Reuters)<\/figcaption><\/figure>\n<\/p><\/div>\n<div class=\"my-5\">Climate activists\u2064 are using lawsuits\u2064 to target oil and gas companies, alleging harm from global warming. Regulatory actions, such as canceling pipelines and revoking drilling leases, also contribute to consolidation as larger\u200c companies have more resources to withstand\u200d such challenges.<\/div>\n<div class=\"my-5\">Consolidation is not limited to\u2062 major acquisitions; smaller upstream companies\u200c are\u200b also being sold \u200bto \u200clarger firms. \u200cThis trend is driven \u2063by the desire for stability and efficiency in the industry.<\/div>\n<p>As\u2064 a result, the era of independent shale production may be coming to an end, with \u200clarger \u2062competitors acquiring\u200b ownership stakes from private equity companies.\u2063 This \u200cconsolidation aims to mitigate the\u2064 boom-and-bust cycle that has characterized the industry.<\/p>\n<h2>The\u200c &#8216;Resource Curse&#8217;<\/h2>\n<div class=\"my-5\">Guyana, a small South American country, is rising as a global oil producer. Major companies are attracted to its production potential and proximity \u200dto home, given rising tensions in other regions.<\/div>\n<p>However, the &#8220;resource curse&#8221; is a concern, as seen in Venezuela&#8217;s decline after transitioning\u2064 to socialism. Stability is\u2063 crucial for long-term investments\u2064 in the capital-intensive oil \u200cand gas industry.<\/p>\n<p>Despite\u200b the acquisitions, it is uncertain \u2062whether U.S. oil and gas production will significantly increase. Many companies are focused on maximizing production\u200c from\u200d existing wells\u2062 rather than drilling new ones.<\/p>\n<div class=\"my-5\">The price of crude oil has \u2063fluctuated, but recent \u2064announcements of production cuts by Russia \u2064and Saudi \u2063Arabia suggest a potential upward trend. However, market watchers remain\u200b skeptical\u2063 about \u200dincreased investment in infrastructure.<\/div>\n<p>Instead of drilling more, Chevron and ExxonMobil have chosen to acquire companies already in\u2064 production. This indicates a \u2062desire for stability rather than a significant boost in overall production.<\/p>\n<div class=\"my-5\">In conclusion, \u200cU.S. oil companies are strategically positioning themselves to ensure a steady supply of oil and gas. Consolidation, both through major acquisitions and smaller deals, aims to stabilize the industry and\u200d navigate challenges \u2063from regulators and climate activists.<\/div>\n<\/div>\n<p> <\/p>\n<h2> \u2062Despite efforts to transition to \u2063renewable energy sources, why do U.S. oil companies like ExxonMobil and Chevron still believe in \u200dthe future demand for fossil\u200b fuels?<\/h2>\n<p><span>  Lenges. This has led to major U.S. oil companies like ExxonMobil and Chevron actively pursuing \u200dacquisitions \u200cto secure their position in the\u2063 oil and gas industry.<\/p>\n<p>Chevron recently announced its acquisition of Hess for $53 billion, adding to its operations in Colorado and Texas. \u200cThis acquisition provides Chevron with access to Bakken shale assets in North Dakota and the Stabroek block\u200d in Guyana. Similarly, ExxonMobil made a \u200bsignificant acquisition \u2064by purchasing Pioneer Natural Resources for about $60 billion. This merger combines Pioneer&#8217;s assets in Texas&#8217;s\u2062 Midland Basin with ExxonMobil&#8217;s holdings in the Delaware and Midland basins.<\/p>\n<p>These acquisitions highlight the confidence of U.S. oil companies in the future of fossil fuels, despite efforts to transition to renewable \u2064energy sources. Benjamin Zycher,\u200b an energy economist\u200c and senior fellow at the American Enterprise Institute, dismisses the idea that fossil fuels will be phased out of the market in the next few decades. He believes that\u200c anyone who holds this belief is deceiving themselves.<\/p>\n<p>According to the Energy Information Administration (EIA),\u200c global demand for fossil fuels is projected to experience modest but steady growth of\u2063 0.7 percent through 2050. However, energy executives argue that these projections underestimate\u2062 the actual demand. \u200bChevron CEO Mike Wirth emphasizes the \u200cnecessity of \u2063oil and gas as a reliable and affordable source of energy. \u2062He states that\u2063 while reducing emissions is important, it should not come\u200c at the expense of reliable energy supply.<\/p>\n<p>In addition to securing resources, industry consolidation is driven by other factors. Higher interest rates and the need for larger companies to defend \u2062against regulatory actions and lawsuits \u2062play a role in\u2063 the consolidation trend. Climate activists are increasingly using lawsuits to target oil and gas companies, alleging harm from global warming.\u200c Regulatory actions such as canceling pipelines and revoking drilling leases also contribute\u200c to the need for larger companies \u200dwith more resources to withstand such challenges.<\/p>\n<p>Overall,\u2064 major U.S. oil companies like ExxonMobil and Chevron are actively acquiring assets to ensure a steady supply of oil and gas in an uncertain world. Their actions reflect their belief in \u200bthe future demand for fossil fuels and the importance of affordable and reliable energy. While the \u2064shift to renewable energy sources is gaining traction globally, these companies \u2062remain confident in the continued relevance of fossil\u200c fuels in meeting real-world\u2062 energy demands.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>ExxonMobil prioritize oil and gas acquisitions, unlike European counterparts BP and Shell, who focus on renewable energy. This ensures a steady supply amidst global uncertainties.<\/p>\n","protected":false},"author":887,"featured_media":2084437,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2084436","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2084436","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/887"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2084436"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2084436\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2084437"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2084436"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2084436"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2084436"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}