Chevron (CVX) is doubling down on fossil fuel demand for years to come as it plans to acquire oil and gas explorer and producer Hess (HES) in an all-stock deal valued at $53 billion, or $171 per share.

The merger is another consolidation play within the energy space as super majors gobble up production assets. It comes more than a week after ExxonMobil (XOM) announced a merger with Pioneer Natural Resources in a deal valued at $60 billion.

The Hess acquisition will give Chevron 30% ownership of more than 11 billion barrels-equivalent of recoverable resources in Guyana. The small country located in South America next to Venezuela is on track to produce more than 1 million barrels per day by 2026.

“While Hess is based in the US, the real prize in the portfolio is Guyana where in less than a decade the country has vaulted into one of the most important growth areas for non-OPEC oil production,” said Peter McNally, global sector lead for industrials, materials, and energy at Third Bridge.

Exxon's Pioneer deal, meanwhile, gives the oil giant massive scale in the Permian Basin, allowing it to double its footprint in the largest oil-producing region in the US.

The mergers highlight demand for fossil fuels for years to come, despite green energy initiatives in the US and abroad.

"Everybody realizes there's going to be an energy transition, but it's going to be a lot longer. It's going to be a lot tougher. It's going to be a lot more expensive," Wells Fargo senior energy analyst Roger Read told Yahoo Finance following ExxonMobil’s merger announcement with Pioneer.

Hess's CEO highlighted the long-term demand for fossil fuels following the deal's announcement.

"Oil and gas are going to be needed for decades to come," John Hess, CEO of Hess told CNBC on Monday. "They're key to an affordable, just, and secure energy transition."

Hess shares rose slightly on Monday to hover just above $164 while Chevron shares dipped more than 2% on Monday.

“Given the growth in Guyana, Hess has much of its value ahead of it,” Citi analysts wrote in a note to clients on Monday.

Hess was the second-best performer of the S&P 500 last year, up 94%, just behind Occidental Petroleum (OXY).

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre.

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