This story was originally published by the Guardian and is reproduced here as part of the Climate Desk collaboration.
Oil giant ExxonMobil agreed to buy the shale group Pioneer Natural Resources for $59.5 billion in a deal that places a vast bet on a future for fossil fuel production in the United States.
America’s largest oil and gas deal in more than two decades will increase Exxon’s dominance in the Permian Basin shale field, at the heart of the country’s transformation into the world’s biggest oil producer.
Shares in Exxon have almost doubled over the past two years as oil and gas prices rose sharply. Its takeover of Pioneer – an all-stock transaction – capitalizes on this market rally.
While the Biden administration has sought to hasten the shift towards renewable energy in the face of the climate crisis, this acquisition underlines the confidence of America’s largest oil company that fossil fuel output will not be significantly hampered in the coming years.
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