$53 billion Chevron-Hess deal is oil market’s second megadeal this month

Chevron said Monday it plans to acquire its longtime rival Hess Corp, marking the second oil industry deal within the month. The sale will give Chevron more access to shale oil production in the Nevada's Bakken region and new assets in Guyana. The new assets set Chevron up for greater growth by diversifying its “advantaged portfolio, said Chevron CEO Mike Wirth. He said the Hess merger would be simple thanks to overlapping company values.

What other oil companies have consolidated? Exxon Mobil Corp. announced earlier this month that it plans to buy Pioneer Natural Resources for $59.5 billion. The deal is projected to double Exxon’s presence in the Permian Basin, allowing the company to potentially double its production. Environmentalists have criticized the recent deals, saying oil companies should use the money to transition to cleaner forms of energy.  

Dig deeper: From the WORLD archives, read Marvin Olasky’s report on an interview with a Texas oil CEO.