The executives of US oil companies ExxonMobil and Chevron held preliminary talks in early 2020 to try merging the two largest US oil producers, making it the largest merger deal in history.
Such conversations indicate the pressure that the largest dominant energy companies are facing after the spread of the Corona epidemic and the decline in crude oil prices, and the conversations were so intense between Exxon CEO Darren Woods and Chevron CEO Mike Wirth that legal documents were needed to include specific aspects of the deal.
The talks have been described as still in their early stages and are expected to restart again in the future. It is worth noting that Exxon and Chevron have a market value of about $190 and $164 billion, respectively, and that the merger deal will form a company with a market value of $350 billion, which will make it the second largest oil company in the world in terms of market value and production rate, right after Aramco for oil production in Saudi Arabia.
But such a massive merger of American oil companies may face oversight problems and antitrust difficulties by the new administration of US President Joe Biden, which re-participated the country in the Paris climate agreements, and also last week, Biden signed new environmental orders, saying the climate crisis is an existential threat that requires immediate action.
The two companies are believed to have missed the opportunity to complete the merger deal under former President Donald Trump, who withdrew from the Paris climate accords, in addition to having strong ties to the fossil fuel industries.