ExxonMobil has agreed a deal to purchase shale oil and gas producer Pioneer Natural Resources for US$59.5 billion, one of the largest acquisitions by ExxonMobil for decades, as the Financial Times reports. The move will approximately double ExxonMobil’s output from the Permian Basin in the south-west of the United States, which has helped make the country the world’s largest oil and gas producer – as Pioneer controls around 15% of the Basin’s production. It also demonstrates ExxonMobil’s belief in the future prospects for oil in a changing energy landscape. Mark van Baal of Dutch shareholder activist group Follow This responded to the news by saying that “this is really Exxon telling the world, ‘We don’t think the Paris climate agreement will ever be achieved. We’ll buy more assets and we’re going to fight tooth and nail to prevent the Paris climate agreement’s achievement.”

ExxonMobil CEO Darren Woods told reporters that “as long as the world needs oil and gas, we’ll all be focused on making sure that they have the most efficient, effective and responsible operator making and producing oil and gas, and doing it with the lowest carbon intensity”. The deal is still subject to antitrust approval, but according to the Financial Times, antitrust experts believe it will not prevent the deal from occurring. Pioneer was established in 1997 by CEO Scott Sheffield, and ExxonMobil is paying 18% above the market price per share of the company.