The purchase values Endeavor at about $26 billion, including debt. The amount will be paid in shares added to $8 billion in cash, according to a statement.
Full consolidation
The sector is in full consolidation, with mergers and acquisitions in a particularly favorable context, since high hydrocarbon prices boost the profits of these firms.
In October, ExxonMobil announced the $60 billion purchase of shale specialist Pioneer Natural Resources, which also concentrates its exploitation, like Diamondback and Endeavor, in the immense Permian basin of west Texas and southeastern New Mexico.
For its part, Chevron announced, the same month, an agreement to buy Hess for $53 billion.
This account represents 5.8 million barrels of oil per day, around 45% of the country’s production.
Biden, together with the extreme left, launched a war against American oil companies hours after sitting in the Oval Office of the White House, where he signed more than a dozen executive orders linked to this sector. He canceled oil pipelines, reduced drilling, discouraged “fracking” (hydraulic fracturing to stimulate hydrocarbon extraction), among other measures. In short: he turned the US into a nation of supplication for the reduction of internationally imposed oil prices.
The set of measures reversed the energy independence of the United States achieved by the Donald Trump administration in 2019 and which turned North America into the largest oil exporter in the world.
Biden se retracta
Among other of Biden’s measures were the brake on the expansion of land for oil exploration, reducing the production of fossil fuels and not bidding for new contracts for extraction, among others.
The above triggered fuel prices that led to the worst inflation crisis in the last almost 50 years, causing suffering for the vast majority of American consumers.
A year and a half later, when the average price of a regular gallon of gasoline exceeded $5 in the United States, Biden was forced to reverse many of his executive orders in the midst of energy chaos that increased with the war on Ukraine and Washington’s dependence on international prices for a barrel of crude oil.
In 2023, and in the vortex of a visible contradiction of what the Biden administration promised, the US oil industry registered a record average production figure of above 13 million barrels of oil per day, compared to 12.2 million of barrels per day that were produced in 2019 during the administration of President Donald J. Trump.
And the fact is that Russia’s invasion of Ukraine – encouraged in part by Washington -, the little or no effect of the sanctions on Moscow and the refusal of Saudi Arabia and OPEC and OPEC+ to increase daily crude oil exports have not left it no room for maneuver for Biden other than avoiding another historic inflation peak in the US.
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Source: With information from AFP.
