OIL: Chevron/Hess Deal Highlight US Oil Consolidation

Chevron earlier agreed a deal for US producer Hess in a $53bn all-stock transaction it said today in a move for US onshore, Gulf of Mexico and Guyana assets.

• It referred to Guyana’s Stabroek block as "an extraordinary asset with industry-leading cash margins and low carbon intensity that is expected to deliver production growth into the next decade".
• Guyana has gone from zero oil output in 2019 and is expected to produce over 500,000 bpd in early 2024. Exxon and Chevron (after Hess deal) are leading development in the region.
• The deal highlights US oil’s consolidation efforts following Exxon’s recent acquisition of Pioneer as well as the desire to produce more energy security in the Atlantic Basin following rising energy security instability of late.