ConocoPhillips acquires Marathon Oil for US$ 22.5 billion amidst oil industry consolidation in the United States.

The American oil giant ConocoPhillips has recently announced a multi-billion dollar agreement to acquire its rival Marathon Oil, in a transaction valued at approximately US$22.5 billion. This merger represents the latest chapter in a series of major acquisitions within the oil sector in the United States, which have taken place amidst increasing pressures and calls for a transition towards more sustainable and environmentally friendly energy sources. The acquisition of Marathon Oil by ConocoPhillips adds to other previously announced million-dollar deals in the industry, such as the purchases made by ExxonMobil and Pioneer Natural Resources for US$60 billion, Chevron and Hess for $53 billion, and Occidental Petroleum and CrownRock for $12 billion. These transactions have created a landscape of consolidation in the American oil sector, with companies seeking to strengthen their position and expand their operations in key oil and gas extraction areas. One of the main attractions of this merger for ConocoPhillips is the opportunity to strengthen its presence in regions rich in shale oil and gas resources, such as the Bakken basin in the north and the Permian basin in the south. This geographical expansion will allow the company to diversify and expand its onshore asset portfolio, adding around 2 billion barrels of additional reserves to its portfolio, as indicated in the joint statement issued by both Texas-based companies. Ryan Lance, CEO of ConocoPhillips, has highlighted the significant synergies expected to result from this acquisition, projecting savings of up to US$500 million in the years following the operation. These savings will mainly come from reducing administrative and production costs, enabling the company to optimize its operations and improve efficiency in a context of growing competition and changing environmental demands. In addition to operational benefits, ConocoPhillips plans to reward its shareholders through a share buyback program of over US$20 billion in the three years following the purchase, with an initial distribution of $7 billion in the first year. These measures aim to generate value for investors and demonstrate the company's commitment to creating long-term wealth, despite the challenges and uncertainties facing the oil sector in a changing and volatile environment. The final closing of the deal between ConocoPhillips and Marathon Oil is expected in the fourth quarter of this year, with the agreed amount including Marathon Oil's liabilities totaling US$5.4 billion. Marathon Oil shareholders will receive 0.255 shares of ConocoPhillips for each share of their company, representing a 14.7% premium over the closing price prior to the transaction announcement. In a broader context, these mergers and acquisitions in the U.S. oil sector reflect a trend towards consolidation and the pursuit of efficiencies in a highly competitive and challenging market. However, they also raise questions about the environmental and social impact of continuing to heavily rely on fossil fuels, at a time when the urgency to address climate change and promote the transition to cleaner and more sustainable energies is increasingly evident. In this sense, the decision of oil companies to carry out mega-mergers like that of ConocoPhillips and Marathon Oil contrasts with the calls from activists, experts, and civil society sectors to accelerate the transition towards a more diversified and environmentally friendly energy model. The pressure on companies to reduce their carbon footprint and adopt more sustainable practices is a crucial issue that will continue to generate debate and tensions in the future, as the world moves towards a more sustainable and equitable energy landscape.