Chevron CEO does not rule out consolidation among oil fundamentals | – #Chevron #CEO #rule #consolidation #among #oil #fundamentals
HOUSTON, Feb 28 (Reuters) – Chevron Corp. (CVX.N) Chief Executive Michael Wirth said on Tuesday that consolidation among the top five Western oil producers remains a possibility but will face regulatory hurdles.
USArising stock in oil-based energy companies prices and cash levels have Wall Street talking about potential deals for European oil producers. January Citi analysts may buy Chevron or Exxon Mobil ( XOM.N ) BP PLC ( BP.L ), Shell PLC ( SHEL.L ) or TotalEnergies ( TTEF.PA ) based on valuation differences.
“I never say never about anything,” Wirth said in a media briefing after the company’s annual business update for investors. “But given the realities of confirming such a thing, execution It wouldn’t be easy to do.”
Regulatory and government approvals make the process more complicated than it was in the late 1990s, when more oil companies and depressed stock prices led to consolidation that led to several supermajors.
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Wirth said, “When it comes to fewer people overlapping, there are regulatory issues and government approvals and so on. it gets a little more complicated,” he said.
According to him, Chevron is in no rush to M&A in oil or renewable energy, or even high energy prices and remains committed to tight spending controls even in times of cash crunch.
“Spending faster doesn’t necessarily improve opportunities. It just means spending faster,” Wirth said. “We will be patient.”
Reporting by Sabrina Valle
Our standards: Thomson Reuters Trust Principles.
2023-02-28 23:54:10
Source – reuters
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