Oil Industry: An Analysis
Oil prices are receding as investors brace for a recession that is likely to dampen energy demand all over the world. China’s zero-COVID policy and resurgence in virus cases are also weighing on oil prices. On July 11, West Texas Intermediate dropped near $101 a barrel.
Nonetheless, the oil industry stands to gain on the back of some long-term growth catalysts. According to an EIA report published in June, oil demand could reach 101.6 mb/d in 2023. China will account for the biggest chunk of this growth in the oil market as the country continues to show relentless economic growth.
Recently, JPMorgan Chase warned that oil could reach $380 a barrel if Russia decides to retaliate against the West by suspending oil and gas supplies to Europe. However, Citigroup is of the view that oil price would collapse to $65 per barrel by the end of 2022 and to $45 by the end of 2023 in case of a recession.
Photo by Viktor Kharlashkin on Unsplash
Our Methodology
In this article, we chose some of the most notable and biggest oil companies in the world.
Most Valuable Oil Companies in the World
15. Devon Energy Corporation (NYSE:DVN)
Founded in 1971 and headquartered in Oklahoma City, Devon Energy Corporation (NYSE: DVN) primarily focuses on the exploration, development, and production of oil and gas. Devon Energy Corporation utilizes around 3942 gross wells.
14. Marathon Petroleum Corporation (NYSE:MPC)
The company focuses on the refinery, transport, and advertisement of petrol in America. Marathon has experienced some great peaks as it continues to grow in the market.
Marathon Petroleum Corporation (NYSE:MPC) was founded in 1887 and operates from Findlay, Ohio. By December 31, 2020, it had 7090 branded chains in operation, covering 35 states. They also deal in the production of aromatics, sulfur, propylene, and propane, while selling to wholesale markets locally and abroad.
13. Schlumberger Limited (NYSE:SLB)
Based in Houston, Schlumberger Limited (NYSE: SLB) provides technological assistance in reservoir characterization, drilling, and processing to the international gas and oil markets. It offers interpretation and consultancy of data and practices using its production systems and software while assisting others with equipment such as coiled tubing and hydraulic fracturing. SLB’s revenue in the past 12 months has been $21.65B.
Schlumberger Limited operates in more than 120 countries.
Like Royal Dutch Shell plc (NYSE: RDS-A), Saudi Arabian Oil Company (TADAWUL: 2222.SR), Exxon Mobil Corporation (NYSE: XOM), and Chevron Corporation (NYSE: CVX), Schlumberger Limited is one of the most valuable oil companies in the world.
12. CNOOC Limited (HKSE:0883.HK)
CNOOC Limited (HKG: 0883) develops, sells, and produces oil and gas in Canada, America, China, England, Iraq, Brazil, Australia, and many other countries. The business is divided into three key departments: Exploration and Production, Trading Business, and Corporate. By December 2019, it had reserves of around 5.18 billion barrels of oil equivalents.
CNOOC Limited (HKG: 0883) recently announced production of the Liuhua 21-2 Oilfield has commenced. CNOOC Limited (HKG: 0883) operates in the Americas (Argentina, Brazil, Canada, Colombia, Guyana, Mexico, Trinidad and Tobago, USA), Europe (UK), Middle East, and Africa (Algeria, Republic of the Congo, Gabon, Iraq, Nigeria, Senegal, Uganda), and Asia Pacific (Australia, Indonesia, Papua New Guinea).
11. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
Petróleo Brasileiro S.A. – Petrobras (NYSE: PBR) manufactures and sells oil and gas internationally and in Brazil. It also provides prospecting, drilling, processing, and transporting oil from onshore to offshore fields. Its Exploration and Production departments focus on producing oil, while the Transportation and Marketing departments get that oil to its destination, handling the supply chain.
Petróleo Brasileiro S.A. – Petrobras operates in Brazil, Argentina, Bolivia, Colombia, Chile, Paraguay, Uruguay, America, Netherlands, United Kingdom, and Singapore. The company ranked 277th on the 2021 Fortune Global 500 list. In 2017, Forbes ranked Petróleo Brasileiro S.A. – Petrobras as the 24th biggest oil and gas company.
10. China Petroleum & Chemical Corporation (NYSE:SNP)
Established in July 1998 and headquartered in Beijing, China Petroleum & Chemical Corporation deals in the energy and chemical industry. The company operates in 5 sectors: Exploration and Production, Chemicals, Refining, Marketing and Distribution, Refining, and Corporate and Others.
The group is the second-largest oil company in China, and it ranked 2nd on Fortune’s Top 500 list in 2019.
9. Enbridge Inc. (NYSE:ENB)
Founded in 1949 and headquartered in Calgary, Canada, Enbridge Inc. (ENB) specializes in five segments: Liquids Pipelines, Renewable Power Generation, Gas Distribution and Storage, Gas Transmission and Midstream, and Energy Services.
Enbridge Inc. (NYSE: ENB) transports around a quarter of the crude oil produced in North America, which covers around 65% of the American-bound Canadian production. According to the company’s 2018 Sustainability Report, it serves 1.5 million commercial, industrial, residential, and institutional customers across 400 communities in southwestern, eastern, and northern Ontario.
8. BP p.l.c. (NYSE:BP)
BP p.l.c. (NYSE: BP) focuses on international energy. It focuses on natural gas trade and production, while offering biofuels, de-carbonization strategies, along with wind and solar-powered facilities. BP p.l.c. (NYSE: BP) operates in 70 countries
BP p.l.c. (NYSE: BP) has exited from The Gambia, which means it no longer has any stake in Block A1.
7. Public Joint Stock Company Gazprom Neft (OTC:OGZPY)
Incorporated in 1995 and situated in St. Petersburg, Russia, this oil company is a subsidiary of PJSC Gazprom. Public Joint Stock Company Gazprom Neft (OTCMKTS: OGZPY) operates in two fields: Upstream and Downstream. Public Joint Stock Company Gazprom Neft exports to over 50 countries. The company supplies and advertises through 1870 filling stations. It is the largest company in Russia by revenue. Public Joint Stock Company Gazprom Neft is ranked 84th on Fortune’s 2021 Global 500 list.
6. TotalEnergies SE (NYSE:TTE)
Launched in 1924 and located in Paris, France, TotalEnergies SE (NYSE: TTE) focuses on four segments: Exploration & Production, Marketing & Services, Refining & Chemicals, and Integrated Gas, Renewables & Power.
Like Royal Dutch Shell plc (NYSE: RDS-A), Saudi Arabian Oil Company (TADAWUL: 2222.SR), Exxon Mobil Corporation, and Chevron Corporation, TotalEnergies SE is one of the most valuable oil companies in the world.
5. PetroChina Company Limited (NYSE:PTR)
Inaugurated in 1999 and located in Beijing, China, PetroChina Company Limited (NYSE: PTR) has 4 segments: Exploration and Production, Natural Gas and Pipeline, and Chemicals, Marketing, and Refining. By December 31st, 2020, PetroChina Company Limited covered 31,151 km, with 22,555 km of pipelines for natural gas, 7190 km of pipelines for crude oil, and 1406 km of pipelines for refined produce.
In China, the company produces 102.25 million tons of crude oil per year. PetroChina Company Limited’s joint venture, Petroineos, serves more than 90 countries with more than 40 subsidiaries in more than 20 countries.
charlie-hang-Hf1Wk-T4Lxo-unsplash
4. Shell plc (NYSE:SHEL)
Founded in 1907, Royal Dutch Shell plc (NYSE: RDS-A) is focused on finding crude oil and natural gas around the world. It has been departmentalized into Corporate, Integrated Gas, Downstream, and Upstream. Ranking fourth in our list of most valuable oil companies in the world, Royal Dutch Shell plc (NYSE: RDS-A) ranked 19th in Fortune’s 2021 Global 500 list.
Shell actually has its core subsidiary, Shell Oil Company, headquartered in Houston, Texas while the parent company operates from the Netherlands. Royal Dutch Shell plc (NYSE: RDS-A) operates in more than 70 countries and sold 69.67 million tonnes of liquefied natural gas in 2020. The company produces 3.4 million barrels of oil equivalents daily. Royal Dutch Shell plc (NYSE: RDS-A)’s downstream sector serves more than 30 million customers at around 46,000 branches daily.
3. Chevron Corporation (NYSE:CVX)
Founded in 1879, Chevron Corporation, headquartered in San Ramon, California, ranks as the second biggest American oil company. In 2005, the company changed from ChevronTexaco Corporation to Chevron Corporation. They are also a major supplier of aviation fuel in America.
Ranking third in our list of most valuable oil companies in the world, it operates in about 180 countries and is ranked 27th in Fortune’s 2021 Top 500 list. Chevron Corporation’s upstream segment focuses on exploration, development, and production of crude oil and natural gas, while also specializing in processing, liquefaction, transportation, and regasification associated with liquefied natural gas. The downstream segment focuses on transporting crude oil and refined products through pipeline, marine vessel, motor equipment, and rail car; refining crude oil into petroleum products; marketing crude oil, refined products, and lubricants are some other activities.
Tupungato / Shutterstock.com
2. Exxon Mobil Corporation (NYSE:XOM)
Founded in 1999 and situated in Irving, Texas, Exxon Mobil Corporation focuses on transport, production, sale, exploration, and more of crude oil. Ranking second in our list of most valuable oil companies in the world, the company ranks 23rd in Fortune’s 2021 Global 500 list.
Exxon Mobil Corporation mainly operates in the Asia Pacific (Australia, China, India, Japan, Singapore, Thailand), Europe (Belgium, France, Germany, Italy, Netherlands, United Kingdom), Middle East (Saudi Arabia), North America (Canada, Mexico, United States), and South America (Brazil).
This year, Exxon Mobil Corporation established a new business portfolio, revolving around commercializing its extensive low-carbon technology. Dubbed, ExxonMobil Low Carbon Solutions, the department is centered around carbon capture and storage, which is a key step towards meeting its climate goals detailed in the Paris Agreement.
Barry Blackburn / Shutterstock.com
1. Saudi Arabian Oil Company (TADAWUL:2222.SR)
Originated in 1933 and situated in Dhahran, Saudi Arabia, Saudi Arabian Oil Company (TADAWUL: 2222) focuses on Upstream and Downstream sectors. By December 31, 2019, the company’s reserves were filled with 258.6 billion barrels of oil equivalents. Saudi Arabian Oil Company (TADAWUL: 2222) is mainly established in the Asian, North American, and European markets.
In May 2021, Saudi Arabian Oil Company (TADAWUL: 2222) ranked 5th in the Forbes Global 2000 list. Saudi Arabian Oil Company (TADAWUL: 2222) also ranked 1st in S&P Global Platts Top 250 Global Energy Company Rankings.
curraheeshutter/Shutterstock.com
You can also take a peek at the 10 Cheap Blue-Chip Dividend Stocks to Invest In and 15 Best Mid-Cap Stocks for 2021.
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This article is originally published at Insider Monkey.
