The merger between Chevron and Hess for $53 billion in shares demonstrates the US energy companies’ pursuit of lower-risk fossil sources and higher shareholder returns.

The deal increases competition between Chevron and Exxon, and makes them partners in Guyana’s burgeoning oilfields, estimated to produce 1.2 million barrels per day by 2027.

The deal follows Exxon’s acquisitions of Pioneer Natural Resources and Denbury, which established Exxon’s carbon storage business on US shale.

Chevron CEO Michael Wirth predicts further acquisitions.

Hess Corp CEO John Hess will join Chevron’s board in the first half of 2024, and the combined firms are expected to produce $1 billion in cost synergies within a year.