It sounds counterintuitive but a megamerger between oil giants Exxon Mobil and Chevron could provide big environmental payoffs by making it easier for President Joe Biden to take aggressive action on climate change. President Biden wants to kick the oil habit but even the most aggressive plan will take decades and require trillions in new infrastructure and technology investment. And while policymakers can’t end demand overnight – even the most bearish long-term forecasts expect demand for oil and natural gas to continue for decades – they can make it more expensive. That would be a mistake since energy consumption and economic growth are closely tied. A marriage of America’s two largest oil companies might be just the ticket to keep a lid on energy prices while giving policymakers more room to rein in carbon emissions. While the talks reportedly went nowhere last year, a merger between Exxon and Chevron makes strategic sense in an increasingly carbon-constrained economy. As carbon-cutting goals become more aggressive and investors press public companies...read more...
SectorOil & Gas