ExxonMobil’s $60 Billion Power Play in the US Oil Market

ExxonMobil, a big US natural gas company, is getting close to making a $60 billion deal to buy another company called Pioneer Natural Resources. This deal would make Exxon one of the top companies producing oil in the US. Right now, Pioneer is worth about $50 billion.

This deal would be the biggest one for Exxon since they joined forces with Mobil Corp. in 1999. It’s expected to happen smoothly without many problems. If this deal goes through, Exxon will become the biggest producer of oil in the US, making about 1.2 million barrels of oil every day. That’s even more than many countries in a group called OPEC. Also, Exxon will have more places to drill for oil, and this will help them get cheap and safe oil for a very long time, even beyond the year 2050. They need this oil to run their big refineries on the Gulf Coast.

Exxon has been looking to buy companies in the Permian area of Texas and New Mexico for a while, but they had some problems because of the pandemic. Oil prices dropped, so they had to spend a lot of money and borrow more to pay their investors. However, they managed to save money and make a huge profit of $59 billion in 2022.

In July this year, Exxon’s CEO, Darren Woods, said they would keep looking for companies to buy but they would be careful and choosey about it.

Image Source: https://www.exxonmobilchemical.com/en/exxonmobil-chemical

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Amar Shinde is a writer and researcher specializing in the intersection of culture, technology, and society. In their free time, they enjoy playing chess.