Jump to content

Big Oil: Difference between revisions

From Wikipedia, the free encyclopedia
Browse history interactively
← Previous editNext edit →
Content deleted Content added
VisualWikitext
Rangoon11 (talk | contribs)
54,477 edits
Undid revision 467606361 - correct before
No edit summary
Line 14: Line 14:


==History==
==History==
The history of supermajors traces back to the "[[Seven Sisters]]" , a term coined in the 1950s by businessman [[Enrico Mattei]], then-head of the [[Italy|Italian]] state oil company [[Eni]], to describe the seven oil companies which formed the "Consortium for Iran" and dominated the global [[petroleum industry]] from the mid-1940s to the 1970s.<ref name="ft">[http://www.ft.com/cms/s/471ae1b8-d001-11db-94cb-000b5df10621.html The new Seven Sisters: oil and gas giants dwarf western rivals], by Carola Hoyos, Financial Times. 11 March 2007</ref><ref>{{cite news|url=http://www.time.com/time/magazine/article/0,9171,946053-1,00.html|title=Business: The Seven Sisters Still Rule|accessdate=24 October 2010|publisher=Time|date=11 September 1978}}</ref> The group comprised [[Standard Oil of New Jersey]] and [[Standard Oil Company of New York]] (now [[ExxonMobil]]); [[Standard Oil of California]] (now [[Chevron Corporation|Chevron]]), [[Gulf Oil]] (acquired by [[Chevron Corporation|Chevron]] in 1985) and [[Texaco]] (now Chevron) ; [[Royal Dutch Shell]]; and [[Anglo-Persian Oil Company]] (now [[BP]]). In 1973 the members of the Seven Sisters controlled 85% of the world's [[petroleum]] reserves.

The supermajors began to appear in the late [[1990s]], in response to a severe deflation in [[oil prices]]. Large [[petroleum]] companies began to merge, often in an effort to improve [[economies of scale]], hedge against oil [[volatility (finance)|price volatility]], and reduce large cash reserves through reinvestment.<ref>
The supermajors began to appear in the late [[1990s]], in response to a severe deflation in [[oil prices]]. Large [[petroleum]] companies began to merge, often in an effort to improve [[economies of scale]], hedge against oil [[volatility (finance)|price volatility]], and reduce large cash reserves through reinvestment.<ref>
{{cite news
{{cite news
Line 23: Line 25:
</ref>
</ref>
[[Exxon]] and [[Mobil]] (1999), BP and [[Amoco]] (1998), Total and [[Petrofina]] (1999) and subsequently [[Elf Aquitaine]] (2000), Chevron and [[Texaco]] (2001), and [[Conoco Inc.]] and [[Phillips Petroleum Company]] (2002) all merged between 1998 and 2002. The result of this trend created some of the largest global corporations as defined by the [[Forbes Global 2000]] ranking, and as of 2007 all are within the top 25. Between 2004 and 2007, the profits of the six supermajors totaled $494.8 billion.<ref>[http://money.cnn.com/magazines/fortune/global500/2008/ Global 500], ''Fortune'' website, accessed Aug. 2008.</ref>
[[Exxon]] and [[Mobil]] (1999), BP and [[Amoco]] (1998), Total and [[Petrofina]] (1999) and subsequently [[Elf Aquitaine]] (2000), Chevron and [[Texaco]] (2001), and [[Conoco Inc.]] and [[Phillips Petroleum Company]] (2002) all merged between 1998 and 2002. The result of this trend created some of the largest global corporations as defined by the [[Forbes Global 2000]] ranking, and as of 2007 all are within the top 25. Between 2004 and 2007, the profits of the six supermajors totaled $494.8 billion.<ref>[http://money.cnn.com/magazines/fortune/global500/2008/ Global 500], ''Fortune'' website, accessed Aug. 2008.</ref>

but in recent decades the dominance of the companies and their successor companies has been reduced by the increasing influence of the [[OPEC]] [[cartel]] and state-owned oil companies in emerging-market economies.<ref name="ft"/><ref>{{cite news|url=http://www.timeslive.co.za/opinion/columnists/article272352.ece|title=Shaky industry that runs the world|accessdate=26 October 2010|publisher=The Times (South Africa)|date=24 January 2010}}</ref>



=="Big Oil"==
=="Big Oil"==

Revision as of 09:00, 21 January 2012

Supermajor is a name commonly used to describe the world's five (and sometimes six) largest publicly owned oil and gas companies.[1][2][3]

Composition

Trading under various names around the world, the supermajors are considered to be:[1][2]

ConocoPhillips Company (United States) is also sometimes described as forming part of the group.[3]

As a group, the supermajors control about 6% of global oil and gas reserves with the largest supermajor, ExxonMobil, ranked 14th. Conversely, 88% of global oil and gas reserves are controlled by state-owned oil companies, primarily located in the Middle East.[4] As of December 2006, ExxonMobil ranked first among the supermajors measured by market capitalization, cash flow, revenues and profits.[5][6]

History

The history of supermajors traces back to the "Seven Sisters" , a term coined in the 1950s by businessman Enrico Mattei, then-head of the Italian state oil company Eni, to describe the seven oil companies which formed the "Consortium for Iran" and dominated the global petroleum industry from the mid-1940s to the 1970s.[7][8] The group comprised Standard Oil of New Jersey and Standard Oil Company of New York (now ExxonMobil); Standard Oil of California (now Chevron), Gulf Oil (acquired by Chevron in 1985) and Texaco (now Chevron) ; Royal Dutch Shell; and Anglo-Persian Oil Company (now BP). In 1973 the members of the Seven Sisters controlled 85% of the world's petroleum reserves.

The supermajors began to appear in the late 1990s, in response to a severe deflation in oil prices. Large petroleum companies began to merge, often in an effort to improve economies of scale, hedge against oil price volatility, and reduce large cash reserves through reinvestment.[9] Exxon and Mobil (1999), BP and Amoco (1998), Total and Petrofina (1999) and subsequently Elf Aquitaine (2000), Chevron and Texaco (2001), and Conoco Inc. and Phillips Petroleum Company (2002) all merged between 1998 and 2002. The result of this trend created some of the largest global corporations as defined by the Forbes Global 2000 ranking, and as of 2007 all are within the top 25. Between 2004 and 2007, the profits of the six supermajors totaled $494.8 billion.[10]

but in recent decades the dominance of the companies and their successor companies has been reduced by the increasing influence of the OPEC cartel and state-owned oil companies in emerging-market economies.[7][11]


"Big Oil"

Petroleum supermajors are sometimes collectively referred to as "Big Oil", a term used to describe the individual and collective economic power of the largest oil and gas producers, and their perceived influence on politics, particularly in the United States. Big Oil is often associated with the Energy Lobby.

Usually used to represent the industry as a whole in a pejorative or derogatory manner, "Big Oil" has come to encompass the enormous impact crude oil exerts over first-world industrial society.[12] The term is also utilized to discuss the consumer relationship with oil production and petroleum use, as consumers in the United States and Europe tend to respond to petroleum price spikes by purchasing vehicles with greater fuel efficiency during these periods. Historically, consumer interest in fuel efficiency and the oil debate wanes significantly as pump prices stabilize.

See also

References

  1. ^ a b "Oil majors' output growth hinges on strategy shift". Reuters. 1 August 2008. Retrieved 28 April 2011.
  2. ^ a b "Shell will invest despite decline in earnings". The New York Times. 2 February 2006. Retrieved 28 April 2011.
  3. ^ a b "ConocoPhillips: The Making Of An Oil Major". Business Week. December 12, 2005. Retrieved 2006-09-29.
  4. ^ Energy Information Administration (2009). "Who are the major players supplying the world oil market?". {{cite journal}}: Cite journal requires |journal= (help)
  5. ^ Reuters, December 2, 2006.
  6. ^ Forbes Global 2000, 2006.
  7. ^ a b The new Seven Sisters: oil and gas giants dwarf western rivals, by Carola Hoyos, Financial Times. 11 March 2007
  8. ^ "Business: The Seven Sisters Still Rule". Time. 11 September 1978. Retrieved 24 October 2010.
  9. ^ "Slick Deal?". NewsHour with Jim Lehrer. 1998-12-01. Retrieved 2007-08-20. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  10. ^ Global 500, Fortune website, accessed Aug. 2008.
  11. ^ "Shaky industry that runs the world". The Times (South Africa). 24 January 2010. Retrieved 26 October 2010.
  12. ^ Inside the Big Oil Game at Time

Further reading

  • Yergin, Daniel. The Prize: The Epic Quest for Oil, Money & Power. New York: Free Press, 1993. ISBN 0671799320.
  • Blair, John Malcolm The Control of Oil (Hardcover). Publisher: Pantheon Books; 1st edition (January 1, 1976) ISBN 0394494709
Retrieved from "https://en.wikipedia.org/w/index.php?title=Big_Oil&oldid=472400949"