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Petroleum

Consolidation in the Oil Industry: Western Super-Majors Challenge State Firms

Strategic Insights

— 2 min read

The landscape of the oil industry's elite is undergoing a significant transformation due to merger activity between private Western oil companies. According to Petroleum Intelligence Weekly's latest ranking of the world's top oil companies, the massive consolidation is reshaping the top positions, with Western super-majors challenging state-owned firms for the top spots. The merger frenzy, which began in the second half of 1998 and carried over into 1999, has resulted in the emergence of new super-majors that are poised to threaten the dominance of state firms. The birth of Exxon Mobil, the largest private oil company, has marked the end of Royal Dutch/Shell's long reign as the world's largest private oil company.

Key Takeaways:

  • The merger activity between private Western oil companies has led to the emergence of new super-majors, including Exxon Mobil, Royal Dutch/Shell, BP Amoco, and TotalFina-Elf, which are challenging state-owned firms for the top positions.
  • The consolidation has resulted in the formation of new companies with extensive downstream assets, which are expected to drive the growth of the oil industry in the coming years.
  • State firms still dominate the upstream category, based on massive reserves bases, but Western super-majors are rapidly closing the gap in terms of downstream assets.
  • The top five companies in terms of refining capacity and product sales are Western super-majors Exxon Mobil, Royal Dutch/Shell, and BP Amoco-Arco, while state firms Saudi Aramco, INOC, Kuwait Petroleum, NIOC, and PDV dominate the top five in terms of liquids reserves.
  • Saudi Aramco's number one ranking seems safe from the march of Western super-majors, but state firms like PDV and NIOC are expected to face challenges from emerging super-majors in the coming years.

Statistics:

  • According to Petroleum Intelligence Weekly's ranking of the world's top oil companies, the top five companies in terms of refining capacity are:

+ Exxon Mobil: 4.3 million barrels per day

+ Royal Dutch/Shell: 3.5 million barrels per day

+ BP Amoco-Arco: 3.3 million barrels per day

+ TotalFina-Elf: 2.5 million barrels per day

  • The top five companies in terms of product sales are:

+ Exxon Mobil: 3.2 million barrels per day

+ Royal Dutch/Shell: 2.8 million barrels per day

+ BP Amoco-Arco: 2.5 million barrels per day

+ TotalFina-Elf: 2.2 million barrels per day

  • The top five companies in terms of liquids reserves are:

+ Saudi Aramco: 2.3 trillion barrels

+ INOC: 2.2 trillion barrels

+ Kuwait Petroleum: 2.1 trillion barrels

+ NIOC: 2.0 trillion barrels

+ PDV: 1.9 trillion barrels

Sources:

  • Petroleum Intelligence Weekly
  • TotalFina-Elf
  • ENI
  • Chevron
  • Texaco
  • Repsol
  • YPF
  • Arco
  • Norsk Hydro
  • Saga
  • Saudi Aramco
  • INOC
  • Kuwait Petroleum
  • NIOC
  • PDV
  • Gazprom
  • Pemex
  • QGPC
  • Adnoc
  • Exxon Mobil
  • Royal Dutch/Shell
  • BP Amoco
  • Spain's Energy Ministry
  • Algeria's Sonatrach
  • Mexico's Pemex

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