Exxon Eyes Oil M&A as Clean Energy Shift Seen Taking Decades
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Exxon Eyes Oil M&A as Clean Energy Shift Seen Taking Decades

Exxon Mobil CEO Darren Woods is eyeing oil and natural gas deals despite calls to reduce emissions, saying any shift in the world’s energy supply will take decades. “Energy transitions take a long time,” Woods said Wednesday at the Barclays CEO Energy-Power Conference in New York. “In the meantime, the world’s rising demand for energy must be met.”Exxon sees oil demand growing at 0.6% per year over the long term and demand for natural gas increasing 1.3% per year even as policy makers look for ways to wean countries off of fossil fuels. That means significant new investments, including acquisitions, will be needed, Woods said, even though shareholders are calling for Big Oil to reduce spending and return more cash to shareholders.More consolidation is in the offing for independent shale drillers, and Exxon will be watching for potential acquisition targets, he said. “If there is the opportunity to acquire something that bring unique value to Exxon Mobil, we’ll be in a position to transact on that,” Woods said. Source: World Oil, 9/4/2019. TCGR Note: Whether it’s ExxonMobil or Chevron (as seen in its recent unsuccessful bid to buy Anadarko Petroleum), the trend towards more industry consolidation will continue for additional reasons, including reduced conventional fuels, demand as biofuels and more electric and hybrid transportation is adopted.