Thread regarding Chevron Corp. layoffs

Should Exxon and Chevron merge? In the short term, no. But in the next 2 to 3 years, it could be a real possibility. Here’s a recent article in Barron’s for The Case for an Exxon-Chevron Merger - https://www.barrons.com/articles/exxon-and-chevron-should-merge-analyst-argues-51602517256
And here’s a recent 6 minute video at CNBC that will leave you thinking - https://www.cnbc.com/video/2020/10/08/why-chevron-and-exxonmobil-should-merge.html
Don’t think it’s not in the cards. It very well May happen before the end of 2021.

We need to stop investing in cow pharts and look to the future of energy. I don’t know what the heck CTV does, but it’s not enough.

That would even a stupid play. Exxon management take no prisoners style would soon dominate the combined company and sink both boats. Smarter to look toward using some cap to broaden base ... could be renewables or something totally different (fusion and electrical infrastructure). We have huge competency is subsurface but also broad skills in mega project management and execution. Oil not going anywhere tomorrow but a few decades from not we better also have irons in other fires.

EM employee here. The free thinkers at EM would much prefer to work for chevron. I think a merger would never happen - EM has a high cost, high carbon intensity portfolio of assets. Who wants that c-ap? And the management is a bunch of robotic sychophants that have no clue how to run a profitable business. Just be glad to work for a company with some common business sense and not a zombie/toxic culture. You’ll likely be double our market cap in five years if they don’t fire DW and Bring in an outsider that is competent. You don’t like your bean counter? Well take him. You can poach looney and buy nextera

@faa+17lTbhrI, haven't you noticed that Chevron's energy transition plan is to produce oil at a lower GHG emissions intensity–which includes using renewables to power our operations? Execs have zero interest in moving beyond our core competency. Carbon capture and storage is attractive because we know how to put stuff into the ground. Other investments are for learning and window dressing.

My bet would be placed on Chevron buying a piece of the renewables market.

I agree a better play for CVX would be renewables but MW has very little vision, he is just a transition bean counter until he retires in 5 years. The real Question is there a visionary at Chevron being groomed or do they bring in an outsider.

Culture melding would be challenging. Exxon management would need to be eradicated down to a low level to k–l the command and control autocratic silos and prevent a cultural infection. Just leave the techs and engineers who’d be happy with some freedom, flexibility, and a fresh start.

Agreed that regulators wont be an issue. Market cap is about 15% of Apple combined.

Some states would require divesting assets, mostly CA, but actually not a lot of overlap outside Texas and Texas is business friendly.

It probably won't happen any time soon, but I doubt antitrust would be an issue. The original Standard Oil basically controlled the entire oil supply in the US. A combined Chevron/Exxon would be large, but still nowhere near as close to having the level of control of the original Standard Oil. BOE/day would be around 7MM, which is less than 10% of worldwide production. In addition, the market cap would be around $300B of a combined org. TSLA currently has a bigger market cap than that.

10 Billion in administrative overhead at Exxon. So many synergies to be had.

You ever hear of Standard Oil? Ida Tarbell, John D Rockefeller, John Archbold? The Sherman Antitrust Act?

Seems like a better play for Chevron would be to purchase a NextEra type company as an energy transition play. A Chevron/Exxon would just be a bigger piece of a shrinking pie.

That would never be approved by regulators.