MOSCOW (MRC) -- Wall Street analysts gave little credence to the possibility of an Exxon-Chevron mega merger, as news of talks last year between the two largest US oil companies leaked ahead of Exxon's results that are expected to show the company posting its first-ever annual loss, reported Reuters.
Shares in both the companies were down in early trading in New York, despite a rising overall market and weekend gains in global crude prices.
"At the depths of the market last year... a cost cutting focused merger of the two companies may have made sense and also scale matters in this industry so it would have created by far the largest integrated oil company," said Anish Kapadia, director of energy at London-based Palissy Advisors.
However, anti-trust concerns and the new US administration's stance on big mergers make it unlikely that a deal resurfaces, Kapadia said, adding that buying smaller, hard-hit oil companies gives Exxon and Chevron more value.
As oil producers in Europe adapt to investors' push for a shift into renewables, it is also possible that Chevron or Exxon could buy the oil producing business of a European major in the coming years, Kapadia said.
Exxon's year-end results scheduled for Tuesday are expected to be marred by a charge of up to USD20 billion on the value of its natural gas properties.
The collapse in oil prices last April briefly pushed crude into negative territory and created a survival crisis for large parts of the US industry.
"Given the precipitous drop (last year)... it is not surprising that XOM and CVX had a discussion about merging," said Mark Stoeckle, CEO of Baltimore-based Adams Funds.
"The sharp snapback in prices likely cooled both companies. There would no doubt be significant cost synergies to be had, but the antitrust issues in a Biden administration would probably be too much to overcome."
As MRC informed previously, in December 2020, Chevron Corporation made a 2021 organic capital and exploratory spending program of USD14 billion and lowered its longer-term guidance to USD14 to USD16 billion annually through 2025. This capital outlook will continue to prioritize investments that are expected to grow long-term value and deliver higher returns and lower carbon, including over USD300 million in 2021 for investments to advance the energy transition.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world"s oil and about 2% of the world"s energy.
Headquartered in San Ramon, California, Chevron Corporation is the the second-largest integrated energy company in the United States and among the largest corporations in the world. Chevron is involved in upstream activities including exploration and production, downstream activities including refining, marketing and transportation, and advanced energy technology. Chevron is also invested in power generation and gasification processes.
MRC