Chevron Acquires Hess for $53B Amid Industry Consolidation and Decline in ESG Investments

Chevron's acquisition places spotlight on the shift to production expansion over ESG focus, with potential implications for a wave of future deals in the energy sector.

Chevron’s $53 billion acquisition of Hess highlights a larger trend of consolidation in the oil industry, even amongst increased pressure from climate-focused investors and policymakers.
The deal signifies a shift within the industry, moving focus from sustainable ESG investments to growing production and purchasing rivals.
This acquisition follows similar moves by Exxon, indicating a refilling of pipelines to maintain production against declining assets with companies betting on their legacy businesses staying profitable into the 2030s.
Despite the volatilities of energy markets, large oil companies like Chevron and Exxon are using their stock as a method of payment for their acquisitions, instead of cash.
Critics believe Chevron's acquisition of Hess, could create a larger industry divide between companies with the ability to buy rivals and those who cannot.