On Wednesday, shareholders of ExxonMobil as well as Chevron met for their annual meetings amid criticism from politicians and climate activists.
ConocoPhillips announced its plans to purchase Marathon Oil for $17.1bn in all-stock transaction hours before the meeting. This makes it the latest US energy conglomerate to make a large bet on fossil fuel production.
Both Exxon (and Chevron) are being investigated by Democrats over a recent dinner where Donald Trump reportedly made an offer of a “quid pro quo” to oil executives.
Chevron, Exxon and others have been criticized for spreading doubt about global climate change in spite of knowing its harmful effects and for breaking previous climate promises when gas prices rose.
ExxonMobil announced in October plans to purchase the Texas oil company Hess. These are the two largest oil and natural gas deals the United States has seen in many years. ExxonMobil has completed its purchase this month. Chevron, meanwhile, is working to complete its transaction.
Environmental campaigners have condemned the deals and warned that they could worsen climate change by allowing big oil companies to expand despite scientific agreement that fossil energy must be phased-out to avoid climate catastrophe.
ConocoPhillips has acquired Marathon oil for $22.5bn including $5.4bn of debt. This comes as oil prices are rising. Crude oil prices are up more than 12% in the past year. A barrel of oil cost over $80 last week.
Cassidy DiPaola is the communications director of the Make Polluters pay campaign which focuses on accountability in the oil industry. These deals, which are worth billions of dollar, show that the major players still bet heavily on fossil fuels as a source of energy.
Exxon shareholders voted Darren Woods as chair, Joseph Hooley as lead director, and all twelve directors back to the board of the company. The company had been battling a “vote-no” campaign launched as a response to a lawsuit Exxon brought against investors who wanted to reduce the company’s emissions of greenhouse gases.
California Public Employment Retirement System , the largest US public pension manager, voted to reject the re-election of every board member in response to Exxon’s lawsuit filed against Arjuna Capital, and Follow This activist investor groups who submitted a shareholder proposition earlier this year to compel Exxon’s to reduce its greenhouse gas emission. Exxon says that the shareholder proposal is designed to undermine the business of the company.
Investors in – Chevron reelected all twelve of the company’s directors, putting their support behind the leadership of the oil giant.
During the Gaza war, Chevron was criticized for extracting the gas that Israel claimed in the eastern Mediterranean. its investors gathered on Wednesday morning in the Bay Area, and dozens of protesters blocked the entrance to Chevron’s headquarters. They called for the company to divest itself from Israel operations and to boycott it.
Matt Leonard, of Oil and Gas Action Network, said that Chevron was literally fueling the genocide waged by the Palestinians.
ConocoPhillips CEO and chair Ryan Lance said that the company’s acquisition of Marathon Oil will add “high quality, low-cost supply inventory” to its operations. ConocoPhillips, he said, and Marathon Oil share “similar values and cultures” with an emphasis on operating responsibly and safely to create long-term shareholder value.
Lee Tillman is the chair, president, and CEO of Marathon Oil. He hailed it as a “proud” moment for his company.
The deal is expected to be completed in the fourth quarter, after it has been approved by Marathon Oil shareholders and cleared by regulators.
The merger of Exxon and Pioneer, recently approved by the FTC, has been scrutinized after the regulatory body alleged that Scott Sheffield, former CEO of Pioneer, had privately coordinated with Opec+ officials in order to maintain high fuel prices.
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