There Will Be (More) Blood: Exxon Should Acquire BP

SourceForbes
SectorTechnology
CountryMiddle east

The 2007 movie thriller There Will be Blood portrayed the ruthless quest for wealth throughout the 1920s oil boom. Wannabe oil barons menacingly clamored for land and used any method to extract and convert crude oil to wealth. Fast forward to 2020 and we have a new script being written as the oil industry moves from thriller to horror story: Oil demand is getting crushed by a COVID-related slowdown. The accelerating electric mobility movement is limiting demand for transportation fuels.

En masse corporations are revisiting environmental impact and carbon footprint metrics. Meanwhile the everyday consumer is now face-first with a continuous barrage of oceanic and land-based climate disasters. This confluence of events is leading to an unavoidable event: messy and major consolidation amongst the traditional energy superpowers. And here is the first move on the oilfield: Exxon should acquire BP. These two stalwarts are down 50% year to-date. And while both stocks are being decimated by lower demand for oil and expected heavier regulations, BP offers an important lifeline to Exxon. Why? Renewables are the future, and BP is focused on renewables. Aiming to be net zero by 2050, BP has built up the organizational structure, wind & solar ...read more...