In this article we are going to list the 11 Most Valuable Energy Companies In The World. Click to skip ahead and jump to the 5 Most Valuable Energy Companies In The World.
The energy industry is easily one of the most important industries in the world right now. After all, it has been absolutely intrinsic in the development of the modern world, powering the Industrial Revolution and being integral in how the world has been shaped in the past 25o years. The energy sector consists of companies which are either directly or indirectly engaged in the production or / and the distribution of energy which is required to sustain and improve our economy. These companies are generally divided into two categories; renewable and non-renewable.
And this is where the debate rages nowadays unabated. While the negative effects on the environment which are a direct resultant of methods of production of energy have been well-documented, most people didn’t pay a lot of attention since the effect was to take place in the future and things seemed fine initially. But now that the world has seen these effects first hand, as adverse weather events are taking place across the world. Cities which never saw snow are seeing snowfall, states which faced mild winters are now facing extremely harsh winters with major storms, other cities which would barely see any rainfall now see days with more than 200mm with the infrastructure not built to manage the deluge. Every new year is recorded as the hottest year in history, which clearly shows the devastating impact that the use of non-renewable energy resources have wrought upon the world.
Before we discuss how to control this, let’s first take a look at how global warming occurs. When companies use non-renewable energy resources such as fossil fuels (which include oil, natural gas and coal), they release greenhouse gases in the air, which contain carbon dioxide, and harm the planet. But on the other hand, the energy requirements of the world are consistently increasing as well. However, there are other, better options available. Renewable energy resources, such as solar, wind, geothermal and hydroelectric power are used across the world to generate energy in a more sustainable method. While these technologies still have their own drawbacks, there is no doubt that they are still much better alternatives to the traditional fossil fuel extractions, which have played a major part in climate change.
Renewable energy has not been overlooked by many oil companies, including the most valuable energy companies in the world featured in our list. For example, Exxon Mobil Corporation (NYSE:XOM) last year announced a new five-year climate change plan following pressure from activist investors amid declining financial performance. Recently, Exxon Mobil Corporation (NYSE:XOM) has expanded a deal to buy up to 5 million barrels of renewable diesel per year for five years, doubling the previously agreed amount. Exxon Mobil Corporation (NYSE:XOM) will be acquiring biodiesel from the Barkersfield biorefinery which is expected to start production in 2022.
Royal Dutch Shell plc (NYSE:RDS) went even further and engaged in a number of renewable projects. Only last week, Royal Dutch Shell plc (NYSE:RDS) and Australian renewables investment company Edify have been awarded a $2.5 billion contract to build a 100-megawatt battery to power Australian state of New South Wales. Additionally, Royal Dutch Shell plc (NYSE:RDS) has announced plans to cut carbon emissions by 45% by the end of this decade.
Regardless of the strength and power of the energy industry, it was still seriously affected by the Covid-19 pandemic, which has devastated the world, even a year on from it being declared a pandemic. Because of this, around 50% of the share of energy use was faced with restrictions by mid April in 2020. While the initial expectation was the the lockdown would last for just a few weeks, the spread and damage wrought by the virus was unprecedented in scope and resulted in lockdowns lasting several months and then, were reinstated multiple times over the next year as the virus would make an upsurge even after a period of relative normality.
Because of the lockdowns, the demand for energy significantly fell, even as industries and offices were closed, though this was slightly offset by the increased usage in the residential sector as people started staying in homes and working from home. Global coal demand was the hardest hit, with demand in the first quarter of 2020 falling by 8% as compared to the same quarter in 2019. Meanwhile, oil demand also fell by around 5%, though renewable energy’s demand actually increased.
The most valuable energy companies in the world have a combined market cap of $3.1 trillion, although more than half of this is contributed by just one company, and I’m sure many of you can guess which company that is. These companies are spread all across the world, with entries from Europe, the United States, Latin America and China too. These companies may have suffered from the pandemic, but they’ve managed to withstand the worst of it. So without further ado, let’s take a look at the the companies mainly responsible for the generation of energy in their countries, starting with number 11:
11. Petroleo Brasileiro SA Petrobras (NYSE:PBR)
Total market cap of the company as at April 2, 2021 (in billion of dollars): 53.174
Brazilian majority state-owned Petroleo Brasileiro SA Petrobras (NYSE:PBR) is the first on our list of most valuable energy companies in the world. Petroleo Brasileiro SA Petrobras (NYSE:PBR) had revenues of more than $76 billion in 2019, with close to 50,000 employees. The company also reported net income of more than $10.1 billion. Petroleo Brasileiro SA Petrobras (NYSE:PBR) was founded 67 years ago in 1953.
10. Equinor ASA (NYSE:EQNR)
Total market cap of the company as at April 2, 2021 (in billion of dollars): 64.039
Equinor ASA (NYSE:EQNR) is a Norwegian company, which is majority owned by the government of Norway. Equinor ASA (NYSE:EQNR) has operations in at least 36 countries and has revenues of more than $60 billion, with at least 20,000 employees. Equinor ASA (NYSE:EQNR) has also been aware of the shifts in the energy industry and has been focusing on Solar and Wind power projects. It aims to become a net-zero emissions company by 2050.
9. ConocoPhillips (NYSE:COP)
Total market cap of the company as at April 2, 2021 (in billion of dollars): 53.174
Next in line in our list of most valuable energy companies in the world is ConocoPhillips (NYSE:COP). Headquartered in Texas, ConocoPhillips (NYSE:COP) is one of the biggest energy companies in the US, and was founded 146 years ago in 1875. The company reported revenues of nearly $37 billion and at least 10,400 employees as well. ConocoPhillips (NYSE:COP) operates in at least 17 countries.
8. BP plc (NYSE:BP)
Total market cap of the company as at April 2, 2021 (in billion of dollars): 82.796
BP plc (NYSE:BP) is a British company, and one of the most valuable energy companies in the world. BP plc (NYSE:BP) has a presence in more than 80 countries, and recorded revenues of $183.5 billion, though this is a decrease when compared to 2019, while also employing more than 70,000 people. BP plc (NYSE:BP) is responsible for the worst oil spill in history, known as the Deepwater Horizon Spill, which has ended up costing BP plc (NYSE:BP) at least $65 billion in costs, penalties and fines.
7. General Electric Company (NYSE:GE)
Total market cap of the company as at April 2, 2021 (in billion of dollars): 116.353
On the seventh spot among most valuable energy companies in the world is General Electric Company (NYSE:GE). US-based General Electric Company (NYSE:GE) has been considered to be one of the biggest conglomerates in the world, and was considered to be among the most profitable companies in America, and even the word, around a decade ago, but then started to significantly underperform, which has led to an erosion of profits. General Electric Company (NYSE:GE) reported more than $75 billions in 2020 and net income of $5 billion in 2020, while employing more than 200,000 employees. At least two employees of General Electric Company (NYSE:GE) are Nobel Prize winners. General Electric Company (NYSE:GE) has also entered into the renewable energy sector, focusing on Wind power generation.
6. Total S.A. (NYSE:TOT)
Total market cap of the company as at April 2, 2021 (in billion of dollars): 122.072
Total S.A. (NYSE:TOT) is a French energy company, and one of the most valuable energy companies in the word. The company was founded in 1924, 97 years ago and in 2019, reported revenues of more than $200 billion, with net income exceeding $11 billion. Total S.A. (NYSE:TOT) also employs more than 107,000 employees and is headquartered in Paris. In addition to oil, the company is also engaged in the production of chemicals.
Please continue to see the 5 most valuable energy companies in the world.
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Disclosure: None. 11 most valuable energy companies in the world is originally published at Insider Monkey.