Chevron Corporation (NYSE:CVX) is a California-based company that is engaged in the integrated energy and chemicals operations in the United States and around the world. On Monday, October 23, Chevron announced that it had agreed to buy the US oil and gas producer Hess Corporation in a $53 billion all-stock deal.
Many of the top energy companies in the United States, Canada, and around the world have signalled that they are buying in on the green energy revolution. For some companies, that means committing to a transition from the core of their business over the next several decades. That is not to say that there are not ripe economic opportunities in the renewable energy space.
Allied Market Research recently valued the global renewable energy market at $881 billion in 2020. The same report projected that this market could reach $1.97 trillion by 2030. That would represent a compound annual growth rate (CAGR) of 8.4% from 2021 through to the end of the forecast period.
Chevron’s big move to gobble up Hess is an interesting one in large part because so many industry leaders have made their pivot to renewable energy so explicit. This move indicates that Chevron is making a big bet on the future of fossil fuels for many years to come. They are not the only top energy company to predict that fossil fuels will have more staying power than many believe.