The Globe and Mail reports in its Tuesday, Oct. 24, edition that Chevron has agreed to acquire Hess in an all-stock deal valued at $53-billion (U.S.). A New York Times dispatch to The Globe reports that the deal marks a further consolidation of the energy industry, where smaller companies are joining forces with bigger players. The transaction follows Exxon Mobil's $60-billion (U.S.) purchase of shale driller Pioneer Natural Resources this month, another sign of confidence among large industry players in the future of fossil fuels even as policy makers promote cleaner energy sources. Like Exxon's acquisition of Pioneer, Chevron's move shows that big oil companies want to invest closer to home amid rising political risks in Asia, the Middle East and Africa. In recent years, Chevron has increased its holdings in the Rocky Mountains and the Permian basin. Third Bridge analyst Peter McNally says, "Besides the United States, South America is the region where Chevron is making its bet." The jewel of the deal is the acquisition of Hess's investment in offshore Guyana, which, in partnership with Exxon, is producing 400,000 barrels a day, up from nothing four years ago. Output is expected to triple by 2027.