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Chevron to buy Hess Corp for $53 billion

Chevron Corp has announced plans to buy the oil producer Hess Corporation in a $53bn deal.

There's a mood of consolidation in the air in the US oil industry - earlier this month Exxon Mobil, the largest American oil-producer, bought oil-explorer Pioneer Natural Resources for $59.5bn. Now Chevron has announced its buying its main rival Hess for $53bn.

The oil industry last went through an era of major consolidation in the late 1990s, following a collapse in oil prices. That's not the case now.

Today, the majors are sitting on piles of cash.

(Picture: View of the pumpjack in the oil well of the oil field. The arrangement is commonly used for onshore wells producing little oil. Pumpjacks are common in oil-rich areas. Picture credit: Getty Images)

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