US Oil Companies ExxonMobil and Chevron Discussed Merger at End of Last Year

[Asia Economy Reporter Park Byung-hee] The CEOs of the two major U.S. oil companies, ExxonMobil and Chevron, reportedly discussed a merger at the end of last year, according to the Wall Street Journal citing sources on the 31st of last month (local time).

The WSJ explained that if the merger is completed, it could become the largest merger in history.

According to sources, Mike Wirth, CEO of Chevron, and Darren Woods, CEO of ExxonMobil, immediately began talks about a merger as the COVID-19 pandemic continued. Both companies are under significant financial pressure due to reduced demand for crude oil and natural gas.

Sources said the merger discussions remained at an early stage and are not currently progressing. However, the source predicted that merger talks could resurface in the near future.

The WSJ noted that both companies trace their roots back to John Rockefeller's Standard Oil, and if the merger is completed, it would create a giant oil company similar to Standard Oil, which was broken up into several companies by U.S. antitrust regulations in 1911.

If the two companies merge, they would become the world's second-largest oil company by market capitalization and production volume. The combined market capitalization is expected to exceed $350 billion, with daily crude oil and gas production reaching approximately 7 million barrels.

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