
Chevron defeats Exxon in dispute over Guyana oil assets, clearing path for Hess acquisition
The ruling by the International Chamber of Commerce in favor of Chevron clears a path for the oil major to complete its $53 billion acquisition of Hess Corporation.
Chevron shares jumped about 3% in premarket trading.

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New York Times
43 minutes ago
- New York Times
Charleston's Climate Lawsuit Against Oil Giants Is Dismissed
A judge in Charleston, S.C., dismissed on Wednesday the city's lawsuit against oil and gas companies over their role in climate change, ruling that the case raised questions that were far beyond the bounds of state laws. During two days of hearings in May, lawyers for the city argued that the companies, ranging from giants like Exxon Mobil and Chevron to local firms, had covered up what they knew about the dangers of greenhouse gas emissions. They accused the companies of mounting a disinformation campaign to cast doubt on climate science and failing to warn the public about the dangers ahead. Those actions increased demand for fossil fuels, which led to emissions and the grave risks linked to climate change that the historic coastal city now faces, including flooding and sea-level rise, they argued. The case cited state tort laws and the state's Unfair Trade Practices Act and sought funds for adaptation and mitigation projects. In his 45-page decision, Judge Roger M. Young wrote that while the lawyers argued the claims were about deception, 'they are premised on, and seek redress for, the effects of greenhouse gas emissions.' He said that those issues fall squarely under federal and not state law, and that the court lacked jurisdiction over out-of-state companies. He cited a 2021 decision by the U.S. Court of Appeals for the Second Circuit in a similar lawsuit filed by New York City against oil companies. In that case, Judge Richard J. Sullivan of the Circuit Court addressed whether the municipalities could use state tort laws to hold multinational companies liable for damages caused by greenhouse gas emissions. 'Given the nature of the harm and the existence of a complex web of federal and international environmental law regulating such emissions, we hold that the answer is 'no,'' Judge Sullivan wrote. Want all of The Times? Subscribe.


Forbes
2 hours ago
- Forbes
Why Managers Are Becoming Obsolete: Leaders May Be Asleep At The Wheel
Last week's earning call with Chevron led the Wall Street Journal (WSJ) to publish an article with the bold headline, 'The Leaner, Meaner Chevron' along with a half-page sketch of Chevron CEO Mike Wirth, wearing boxing gloves and a grim expression, pugnaciously inviting a fight. Yet reading the transcript of the call reveals no sign of lean-and-mean pugnacity. There is talk of reorganizing but no mention of a change in strategy. Indeed, CEO Mike Wirth is at pains to 'reiterate the consistency in our strategy' which is 'to continue to deliver growth and shareholder value.' Innovation is put in terms of becoming more efficient, not of doing anything different. With no mention of customers or the environment, the goal is clear: making money for shareholders and executives. (Wirth's own compensation rose from $28 million in 2023 to $33 million in 2024.) Changing The Culture? The WSJ reports that in February earlier this year, at a company meeting, Wirth had a 'stern message' for Chevron's 40,000 employees. 'Stop being so nice to each other.' Now, six months later, WSJ reports that Chevron is 'overhauling the oil giant's culture.' Apparently, 'overhauling' means putting a patch on things, rather than basic change. Thus Wirth said, 'I'm incredibly proud of Chevron's culture and wouldn't trade it for anybody else's. We're working to further strengthen our culture with an even sharper focus on performance by executing faster and more efficiently, simplifying our organization, and delivering targeted innovation.' Chevron is thus getting a facelift to its existing way of doing things, rather than rethinking from first principles what it could mean to be a oil-drilling corporation in the age of the Internet, AI and a global environmental crisis. Wirth ended the call with a wish to 'reiterate the consistency in our strategy and our fundamental commitment to capital discipline and superior shareholder returns and how we intend to continue to deliver growth and shareholder value into the future.' At best, Chevron's strategy is to become more like its bigger brother, the litigious Exxon-Mobil, which according to the WSJ is sometimes seen 'as a law firm that produces oil." Now Chevron can triumphantly wave around its victory over Exxon-Mobil in the long and costly arbitration over Guyana drilling rights. Although revenues fell short of expectations for the last quarter, earnings per share were up, due to the dubious magic of share buybacks. Reorganization: Moving the Boxes Around On the call, Devin McDermott (Morgan Stanley) politely inquired about the differences between 'the new organizational structure versus what Chevron currently has.' The answer was that 'we come from a decentralized kind of operating model where we really get things done locally and have very strong relationships locally, we wanted to build on that to unlock incremental value.' The goal is to 'achieve cost reduction, by centralization, standardization, and reducing staff numbers.' Chevron expects 'faster innovation and scaling of solutions like AI to optimize fracs in real time and accelerate exploration data analysis, among other use cases." Chevron's Mission Is Drilling Chevron's mission in life is to 'drill, baby drill' the single-minded goal of making large amounts of money for the executives and the shareholders. Wirth has spent 40 years at Chevron. With its arbitration victory, Chevron is becoming steadily more like the litigious Exxon-Mobil, which has been 'likened by some to a law firm that produces oil.' Last year, Chevron moved its headquarters from California to Texas, to join Exxon-Mobil in a state that is less likely to ask pesky questions about the environment or customers. In Texas, Chevron can get on with drilling and making more money. A Future For Chevron Beyond Drilling: Equinor? Oil is a dying industry, although oil drilling won't vanish overnight. Some estimates suggest that the industry will have a long dusk, lasting 30-50 years as a major business, transitioning to niche roles after 2070. So Chevron could continue to survive with its 'drill, baby drill' mission for some decades. Yet with different leadership, Chevron could also envisage a different future by addressing wider societal concerns. Take Equinor, the Norwegian multinational energy company, which was once just an oil company, like Chevron. But in 2007, it began making investments in renewable energy and lithium mining. Although it is still much smaller than Chevron, Equinor's ten-year performance (2015–2025) shows strong relative value growth compared to Chevron: Maybe it's time for Chevron to think about a future beyond drilling. It might discover that today, firms that create new kinds of value make more money than those focused solely on making money. And read also: Millions Of Managers Are Becoming Obsolete: Master Value Creation Now Millions Of Managers Are Becoming Obsolete—By Solving The Wrong Problem
Yahoo
5 hours ago
- Yahoo
OPEC Turns The Output Tap On: What It Means For Oil ETFs
Oil-focused ETFs came under pressure this week after OPEC+ announced plans to boost production starting in September, raising fresh concerns over an oversupplied market. USO ETF is in the red today. Check its prices live, here. The cartel will unwind the last leg of its voluntary production cuts, adding roughly 547,000 barrels per day back into global supply, reported Bloomberg. The move weighed on crude prices and hit popular oil ETFs tied to near-term futures contracts. Also Read: Futures-Heavy ETFs Take A Hit ETFs like the United States Oil Fund (NYSE:USO) and United States Brent Oil Fund (NYSE:BNO) fell over 5% in the past week when speculations began. Both funds track front-month oil futures and are vulnerable in a contango environment, when futures contracts are priced higher further out, eroding returns on rollovers. Leveraged products such as the ProShares Ultra Bloomberg Crude Oil (NYSE:UCO) also saw outsized losses, down about 10% in the past week, reflecting amplified exposure to daily moves in crude prices. Also Read: Alternative Strategies Show Resilience Not all oil-linked ETFs suffered. Funds using optimized roll strategies or offering equity exposure to energy companies held up better. Equity-based funds like the Energy Select Sector SPDR Fund (NYSE:XLE) and VanEck Oil Services ETF (NYSE:OIH) were more insulated, losing around 1.7% during the same period, with underlying holdings such as ExxonMobil Corp (NYSE:XOM) and Halliburton Co (NYSE:HAL) expected to benefit from increased drilling activity. Geopolitics Add Another Layer Of Risk The OPEC+ move comes amid rising geopolitical tensions, with reports suggesting the U.S. may consider secondary sanctions on China for importing Russian crude, like it just did for India. Investors seeking to reduce exposure to such risks may look to globally diversified resource ETFs. The SPDR S&P Global Natural Resources ETF (NYSE:GNR) and FlexShares Global Upstream Natural Resources ETF (NYSE:GUNR) offer broader exposure to energy and commodities worldwide. Outlook As oil markets digest the upcoming supply increase, ETF investors may consider shifting strategies. Futures-heavy funds could continue to face headwinds, while equity-based or globally diversified funds may offer more stability in the months ahead. Read Next: Photo: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article OPEC Turns The Output Tap On: What It Means For Oil ETFs originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.