Reuters
Published Feb 28, 2023 01:48PM ET
Updated Feb 28, 2023 02:07PM ET
By Sabrina Valle
HOUSTON (Reuters) - Chevron Corp. (NYSE:CVX) Chief Executive Michael Wirth on Tuesday said a consolidation between the five top Western oil producers remains a possibility but would face regulatory hurdles.
Soaring stock prices and cash levels at oil-focused U.S. energy majors has driven Wall Street talk of potential deals for European oil producers. Citi analysts in January speculated Chevron or Exxon Mobil (NYSE:XOM) could acquire BP (NYSE:BP) PLC, Shell (LON:RDSa) PLC or TotalEnergies due to valuation differences.
"I never say never about anything," Wirth said in a media briefing following the company's annual business update for investors. "But it would not be simple to execute, just given the realities of getting something like that approved."
Regulatory and government approvals make the process more complex than in the late 1990s when the greater number of oil companies and depressed shares prices triggered consolidation that led a handful of supermajors.
"As you get down to fewer people who overlap, the regulatory challenges and government approvals, etc., gets a little bit more complex," Wirth said.
Chevron is not in a hurry for M&A in oil or renewable energy and remains committed to keeping a tight rein on spending even during periods of high energy prices and cash abundance, he said.
"Spending faster doesn't necessarily make opportunities better. It just means spending faster," Wirth said. "We will be patient."
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.