ChevronTexaco Buying Unocal in $16.4B Deal

[DoYouEverWonder]

April 4, 2005

NEW YORK - ChevronTexaco Corp., the nation's second biggest oil concern, is buying rival Unocal Corp., the ninth biggest U.S. oil and gas exploration and production company, for about $16.4 billion in cash and stock.

Under the deal announced Monday, ChevronTexaco would also assume $1.6 billion of debt in the deal.

Unocal has been evaluating a possible sale and reportedly had also drawn interest from the Italian oil company Eni SpA and China National Offshore Oil Corp., a large Chinese state-owned company.

The deal would be the largest takeover in the oil sector in years, and comes as crude oil futures prices have been hitting record levels albeit they are still lower than the peaks reached in the 1980s in inflation-adjusted terms.

http://news.yahoo.com/news?tmpl=story&ncid=749&e=1&u=/ap/20050404/ap_on_bi_ge/chevrontexaco_unocal&sid=84439559

[Deja Q]

1. Oh good. ANOTHER merger. So 'ChevronTexacoUnocal' will be the new

name, I suppose.

[TheFarseer]

2. I can't wait til they all merge

so they don't have to be so sneaky about price gouging. Also all this fluctuation in the price confuses me. If they're all together, they can just set the price at 5 bucks a gallon and not move it around so much, oh unless they decide they need higher profits, then they could raise it more, but hopefully by round numbers so we don't have to fuss with pennies. I think that would be handy for us all.

[Roland99]

3. Yeah....this is going to be GREAT for competition

if you're Bush.

[Wright Patman]

4. What's really cool

about this time around is that there will be no call for "windfall profits" taxes. Price gouging is "godly."

The sheep may bleat as they are fleeced, but the Oilmen of God (GOP = God's Oil Party) in Washington, D.C., are in control and will protect your "moral values" from corruption.

[Up2Late]

5. ChevronTexaco to Buy Unocal for $16.4 Bln (Reuters)

(This can't be a good thing for us, the consumer)

ChevronTexaco to Buy Unocal for $16.4 Bln

Mon Apr 4, 2005 11:59 AM ET

By Deepa Babington

NEW YORK (Reuters) - ChevronTexaco Corp. (CVX.N: Quote, Profile, Research) won a close race to scoop up smaller California rival Unocal Corp. (UCL.N: Quote, Profile, Research) for about $16.4 billion on Monday, expanding its drilling reach in Asia and strengthening its position in the Gulf of Mexico. The deal gives ChevronTexaco, the No. 5 global oil company by market capitalization, a keenly sought after portfolio of discovered and undeveloped deepwater oil and natural gas assets overseas, specifically in the Asia Pacific region.

While it comes on a day when crude prices rose above $58 a barrel to a record, ChevronTexaco played down talk it was making a major acquisition at the top of the market, citing Unocal's large exposure to natural gas. "We are not buying today's crude price," ChevronTexaco Chief Executive Dave O'Reilly told reporters on a conference call. "We're buying a company with long-term assets and with a great potential, primarily centered in Asia and the gas markets."

Soaring crude prices have left oil companies flush with cash, but fewer exploration opportunities coupled with limited access to oil-rich regions such as the Middle East and Russia have led them to seek acquisitions to boost reserves. Among its U.S. peers, Unocal has the largest exposure to Asia, a region that has reshaped the energy landscape over the past year because of its burgeoning demand for oil. "Unocal should make a good fit with ChevronTexaco," said James Halloran, analyst with National City Private Client Group, in Cleveland, which manages $33 billion in assets. "It gives them a much stronger presence in exploration and production, especially in the Far East."

ChevronTexaco beat out Italian oil group Eni (ENI.MI: Quote, Profile, Research) , China National Offshore Oil Corp. (CEO.N: Quote, Profile, Research) (0883.HK: Quote, Profile, Research) and other potential suitors to acquire the No. 9 U.S. oil and gas producer, whose operations stretch from Thailand and Indonesia to the Congo and Brazil and the Gulf of Mexico.

(more at link above)

[mac56]

6. Maybe the Federal government will step in and stop it...

as a undue restriction of competition in the oil industry.

(long silence)

BWAH-HA-HA-HA-HA-HAAAAAAAAAAA!!!

(wipes tears of laughter from eyes)

Oh, I kill me.......

[Moderator]

7. kick to combine

[KalicoKitty]

8. ChevronTexaco Buying Rival Unocal for $17B

http://www.sun-sentinel.com/business/nationworld/ats-ap_business11apr04,0,3310574.story?coll=sns-business-headlines

Excerpt:


"ChevronTexaco earned $13.3 billion last year, the most profitable year since its inception in 1879. Unocal earned $1.21 billion last year, nearly doubling its profit from the previous year."


We are being gouged so they can profit BILLIONS! We can't do a damn thing about it because they own the administration! BIG OIL rules!

[caligirl]

9. and here is the real scandal.

ArnoldWatch Web Log: - Apr 04, 2005 - 12:15 PM
Chevron-Texaco's LNG-Gate
by: Jamie Court and Doug Heller
Sign up to receive free web logs via email

Today's announcement of Chevron-Texaco's purchase of Unocal has a back story that could be the biggest scandal of the Schwarzenegger Administration yet. Back in July '04, some of Arnold's top brass were treated by Chevron-Texaco to an overseas trip -- it included luxury accommodations at the Four Seasons Hotel in Sydney, Australia -- to sell the gov's people on why Liquefied Natural Gas (LNG) should be California's new source of electricity. Today's announced merger is mostly about Chevron-Texaco's desire to corner the market on LNG, of which Unocal controls significant supplies in the Far East. It's a $16 billion bet that California will open the door to coastal LNG terminals and make the long-term commitment to gas produced electricity.

What kind of insider information could that type of bet hinge on? Arnold's campaign committees have accepted $222,200 from Chevron-Texaco. Chevron-Texaco's former lobbyist, Patricia Clarey, is now Schwarzenegger's chief of staff. There's no energy company in the state that Arnold's Administration is closer to.

But if Chevron-Texaco corners the international market on LNG, it will be in the same position to withhold electricity supply and drive up electric prices that Enron and other energy firms like Reliant and Dynegy were in five years ago. (Don't forget Chevron owned about 27% of Dynegy when the market was manipulated last time.) And reporting by the Orange County Register last year showed that Chevron-Texaco shipped three tankers full of California gasoline out of state just as California drivers were paying record prices at the pump.

The state legislature and/or California Attorney General should immediately investigate all discussions between Arnold's Administration and Chevron-Texaco about LNG and the timing of those discussions. Bechtel Corporation, a top Republican donor, stands to benefit greatly from a new LNG market by building the coastal terminals needed for it, but the energy company that controls the LNG stands to profit the most. Chevron-Texaco's campaign cash, with the help of all-expense paid trips and a lobbyist in the gov's inner circle, should not be able to buy that company a new grip on California's electricity supply. If state officials drill a little they might just find "LNG-gate" not too far below the surface.

Read more at: http://ArnoldWatch.org

[Massacure]

10. Energy monopoly + energy shortage = good game United States.

:(

[chlamor]

11. Chevron Texaco to Purchase Unocal for $16.4 Billion

ChevronTexaco to Purchase Unocal for $16.4 Billion

April 4 (Bloomberg) -- ChevronTexaco Corp., the second- largest U.S. oil company, agreed to buy Unocal Corp. for $16.4 billion in stock and cash to increase reserves in Asia, the world's fastest-growing energy market.

The purchase, the oil industry's biggest since 2002, values Unocal at $62 a share, ChevronTexaco said in a statement today. El Segundo, California-based Unocal rose to a record $64.60 last week, up 49 percent for the year, after reports that Eni SpA of Italy and China's CNOOC Ltd. were among bidders for the company.

The Unocal purchase will add reserves in such Asian countries as Indonesia, where ChevronTexaco is the largest producer, and Thailand. Demand in the region is surging as the economies of China and India expand, helping push energy prices to record highs. Half of Unocal's reserves are in Asia.

``Unocal has got some significant reserves in locations beneficial to ChevronTexaco,'' said Douglas Ober, who manages $1.9 billion, including 625,000 ChevronTexaco shares, at Adams Express Co. in Baltimore.

http://www.bloomberg.com/apps/news?pid=10000103&refer=news_index&sid=ac2n7ZAkMqog

[earthside]

12. Proof that we've reached the peak.

At nearly $60 a barrel and trending up, if there was more oil to be found and pumped, ChevronTexaco would spend a small portion of the $16 billion on exploration.

But they know there isn't much left to be found, so they just buy someone else's reserves.

Consolidation of the oil industry is proof that the peak of oil production has been reached ... get ready for $4 and $5 gasoline! Recession, depression, revolution ... Woo-hoo!

[chlamor]

14. Heard a report

today on the radio discuusing this sale and the energy analyst said that oil companies "Were desperately looking for reserves"- exact words.

[Warren Stupidity]

15. and that we would see a lot more consolidation

and then npr went on to do its faux news equal and balanced thing by presenting the expert opinion that this would be good for consumers (complete bullshit, why would less competition be good for consumers) alongside the obvious conclusion that consumers would lose big time.

I was waiting for the 'and its all them libruls stopping us from drilling out Anwar thats got us into this mess'. They did not manage to go there.

Notoriously Putrid Radio also couldn't really be bothered to point out *directly* that chevron using acquisition to increase its 'proven reserve balance sheet' rather than exploration is a sign, as noted elsewhere here, that the peak is now. We are here folks. Its happening. Oil companies are hoarding their reserves rather than putting their capital into exploration EVEN THOUGH OIL PRICES ARE UP 60%. Gee, why would they be doing that?

[chlamor]

16. N (National) P(Propaganda) R(Radio)

Presented that awful story from the investors angle. Of course those who understand their crap know that buyouts and mergers means oops outta businees we'll save your bacon to keep the shell game goin'.

You are on the money. Peak oil is here recommend reading the report on Ghawar that dying beast. I'll post link later, can't find it now. Pdf file. Cantarell is cracking apart also. Damaged fields and low quality oil.

[earthside]

19. Ghawar Report

I reprinted the "oil" section of the Harris Nesbitt report on the peaking of Ghawar on Saturday, April 2, on my web site: Earthside.com.

It is definitely worth reading.

[illflem]

13. At least the Chinese didn't buy Unocal

they were in on the bidding a while back

[DemoTex]

17. Meanwhile, windfall profits (remember that term) go un-taxed!

The airlines are on the ropes because of fuel prices (NOT LABOR!), and the oil companies are making windfall profits. This is FUCKED-UP my friends. Nationalize oil, nationalize airlines now! Know whut ah mean Vern?

[ConcernedCanuk]

18. Odd they don't mention all the CANADIAN reserves they get their hands on??

.
.
.

And that recent find in the North West Territories??

By a Unocal Company bought from Canada a few years back?

"Calgary-based Northrock Resources Ltd. is a wholly owned subsidiary of Unocal Corporation."

hmmmmm

Tulita (oil, gas) strike said to be biggest NWT find in decades

YELLOWKNIFE - There has been a major oil and gas discovery southwest of Tulita that industry officials say will ignite more interest in exploration in the area.

Oil company executives say it's the largest find in decades in the region, 600 kilometres northwest of Yellowknife.

... Officials say the well produced 20 million cubic feet of natural gas and 6,000 barrels of light crude oil daily during the test in two locations. The oil production is about 100 times greater than the average well in Alberta.

_________________________________________________

Big discovery,

Big purchase

Big coincidence? . . :freak: . .

[emad]

20. ChevronTexaco buys rival for $18bn

Deal expected to usher in fresh wave of energy mergers

David Teather in New York
Tuesday April 5, 2005
The Guardian

ChevronTexaco yesterday announced an $18.2bn (£9.7bn) deal to buy American rival Unocal, a move to cash in on the growing thirst for energy that has sent crude oil prices to record levels.

The agreement is expected to be the first in a wave of takeovers in the sector as energy companies post record profits and seek to boost their oil and gas reserves.

ChevronTexaco, the second largest energy producer in the United States, saw off other bidders for Unocal including the state-owned China National Offshore Oil Group and Italy's Eni. Unocal is the ninth largest producer of oil and gas based in the US and the deal adds 15% to ChevronTexaco's reserves.

http://www.guardian.co.uk/oil/story/0,11319,1452431,00.html

[DiverDave]

21. Anyone for Monopoly?

You know, the game where you control everything?, and everyone?

[sattahipdeep]

22. Why are crude prices going up?

SPITZER SHOULD TAKE ON THE
THUGS STEERING OIL MARKET

By JOHN CRUDELE


Mostly because Wall Street wants them higher--for purely selfish reasons.
But also because nobody is doing anything to bring them down.

Last week, for instance, higher crude prices were mostly caused by a report
from Goldman Sachs with the highly irresponsible prediction that the price of
a barrel of oil could reach $105 a barrel. Or it may not.

Crude oil inventories, in fact, are so large that we're
running out of places to put the goop. Just last week there
was a 5.4 million-barrel rise in stockpiles that was double
Wall Street estimates and the biggest increase since October.

http://www.nypost.com/business/43832.htm

Suit alleges GED fraud Spitzer

http://www.newsday.com/business/ny-bzged4204185apr05,0,2807582.story?coll=ny-business-headlines

AIG led a midday turnaround as state Attorney General
Eliot Spitzer said a civil resolution of his accounting
probe was "achievable."

http://www.nydailynews.com/business/story/296556p-253925c.html

[hunter]

23. ChevronTexaco will "discover" Unocal reserves were vastly overstated.

Of course they secretly knew this going into the deal, but company management will be appropriately shocked and surprised if it becomes public.

Yet behind closed doors, the combined ChevronTexacoUnocal management will be sleeping very well knowing that they have successfully covered up a very big stink, and that average Joe consumer will has no option but to pay for the deception.

This situation is analogous to a big bank taking over a smaller bank that has been run into the ground. Normally the shareholders might give a damn except that the demand for oil seems to be growing despite the rising prices.

Thirty, forty, fifty, sixty dollars... how much do I hear bid for this barrel of oil?

All along the big deception has been that the oil companies "produce" oil, when in fact they are in the business of auctioning off assets.

"Buy low, sell high" is an easy game when you own the government.

Oh yeah, let me say it now:

George W. Bush, Arnold Schwarzeneger, Condoleeza Rice, and so on --

You are nothing more than crack whores to the oil industry.

Shit, Unocal once named a tanker Condoleeza Rice, and her relationships with Chevron were always big news with the business paparazzi... Ooooh, ahhhh, pictures of Condi on an asian beach with Chevron!

Arnold and George... well, they've always been very simple minded crack whores, but quite spectacular performers on the casting couches of Wall Street.

Rah, rah! Go George, go Arnold! Go George, go Arnold! Go George, go Arnold.

Alas, it now occurs to me now that I slander true crack whores. Please forgive me.