Reserve Judgment In Deal for Unocal, Chevron Gambles On High Oil Prices

Chevron’s decision to swallow Unocal comes amid an increasingly tense debate over whether the world’s oil supplies have hit a peak and are about to start running out. If so, that will mean sky-high oil prices and a race for control of companies such as Unocal that own proven reserves.

Some leading oil companies, including No. 1 Exxon Mobil Corp., flatly reject the so-called peak-oil theory. They say there’s still plenty of oil out there. They think oil prices, which hit $64 a barrel this week, will retreat over the long run and it doesn’t make sense to pay a premium price for companies like Unocal.
Wall Street Journal via ShellNews