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Page added on October 2, 2017

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ExxonMobil Dethroned As Top Energy Company

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Gazprom dethroned ExxonMobil as the top energy company in the world, according to the 2017 S&P Global Platts Top 250 Global Energy Company Rankings. The rankings measure the financial performance of energy firms on four key metrics: asset worth, revenues, profits, and return on invested capital. The list only includes companies that have assets greater than $5.5 billion.

For 12 years, ExxonMobil was second to none. But that changed this year – Exxon was ejected from the top spot, and fell all the way to ninth place.

Gazprom’s surge reflects its state ownership, its captured market in Europe for its natural gas, as well as the fall of some of its peers. But the Russian gas giant’s ability to weather sanctions, regulatory threats from the EU, low oil and gas prices, and the rise of competition from new supplies of LNG is impressive.

The reshuffling was the result of some dramatic changes underway in the energy industry, according to S&P Global Platts. Typically, the companies topping the list have been integrated oil companies. But this year, utilities and pipeline companies moved up the list. That, combined with the stumble by Exxon, marks a “changing of the guard, the most profound in the Rankings history,” S&P Global Platts said in a press release.

Still, to some degree, the shakeup is not surprising. After all, oil prices have languished for a third year, weighing on the oil industry. That doesn’t necessarily affect utilities and pipeline companies. While oil producers have stumbled, revenues for regulated utilities are pretty stable, and the same is true for pipeline companies that typically ink long-term deals with relatively inflexible pricing.

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“European utilities and North American pipeline operators got a boost from sticking to what they know best and shying away from more risky enterprises and territories,” Harry Weber, senior natural gas writer of S&P Global Platts. “Regulated utilities, in particular, have an advantage because their revenues are largely defined and consistent, and are not as susceptible to swings in oil and gas prices.”

The natural gas sector in the United States has been a particularly promising place for a lot of companies. The surge in gas production has led to a significant need for new pipeline capacity. A raft of new natural gas-fired power plants also ensures the demand for gas will be there. Pipeline companies have stepped up to meet the need. “These trends are expected to continue into the next decade as billions of dollars of new investment pour into pipeline projects in the U.S., Canada and Mexico,” S&P wrote in its report.

Some oil companies that avoided a slide were those that made more investments in pipelines. S&P singled out French oil giant Total SA, which jumped from 12th to 10th in the rankings – returning to the top 10 after a two-year absence – owing to some notable investments in U.S. natural gas.

S&P pointed out a few companies that made the largest jump up in the rankings. German utility E.ON leapt from 114th to 2nd and British utility Centrica jumped from 156th to 15th, for example, highlighting the strong performance from utilities.

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E.ON was a rather interesting case because it had been battered in the past by the radical transformation underway in Germany’s electricity industry. But last year, E.ON spun off its fossil fuel generating assets into a separate company, with the remaining entity focusing on renewables, energy networks and customer solutions. E.ON’s revenue plunged from 7th to 28th – because it is now a smaller company – but its return on invested capital surged to 35 percent, which meant the Germany utility offered the highest ROIC on the list, a long way from the 246th place it recorded in 2015.

S&P said that Exxon could rebound in the rankings in the future due to its sizable investments in the Permian basin. The oil major spend $6.6 billion on Permian acreage in January, and just announced another significant Permian acquisition last week. Higher oil production will help, but higher natural gas output will also aid the oil major’s cause. As the region’s pipeline infrastructure expands, more gas will flow to the Gulf Coast as well as Mexico.

It is important to note the rankings encompass four financial metrics, so dominance in one category does not necessarily mean leading overall. For example, Royal Dutch Shell ranks #1 in assets at $411 billion. But Shell only ranks 8th in profits at $4.5 billion, and well outside of the top 10 in ROIC, giving the Anglo-Dutch oil major an overall ranking of just 23rd.

(Click to enlarge)

By Nick Cunningham of Oilprice.com



24 Comments on "ExxonMobil Dethroned As Top Energy Company"

  1. Duncan Idaho on Mon, 2nd Oct 2017 3:14 pm 

    The Russians again.
    And they need to import little.

  2. energy investor on Mon, 2nd Oct 2017 5:33 pm 

    If the Russians had to go onto a “war footing” it wouldn’t change much as they are already self reliant on most essentials.

    The SCO member countries form an impressive geographic network and with the Silk Road, and the several “Pearls” will be a formidable economic and military bloc – particularly with the BRICS linkages.

    The USA on the other hand has become reliant on others for many strategic minerals.

    The USA needs to sharpen up its act.

  3. MASTERMIND on Mon, 2nd Oct 2017 5:47 pm 

    T Rex Drillerson ran Exxon into the freaking ground. And this idiot gets a promotion? Can you say “pay to play”?

  4. Davy on Mon, 2nd Oct 2017 6:24 pm 

    “If the Russians had to go onto a “war footing” it wouldn’t change much as they are already self reliant on most essentials.”

    Let’s see, how long would the Russian economy last without a healthy global economy? It surely would not be what it is today. I think a war footing is the prelude to war. Once the war happens we are talking a different world. There are too many people on this board living in the 20th century and anti-American. They hark back to Russia of WWII and they see the world through the economic lenses of a different time. We are very close to a global economic break that will equate to much lower economic output and with that a lower population.

  5. makati1 on Mon, 2nd Oct 2017 6:50 pm 

    Energy, you are correct. Russia would do fine without anyone else. Self sufficiency is their heritage and present situation. They export food and energy. What else do they need?

    Whereas, as you said, the US imports most EVERYTHING it needs to keep the wheels turning, even money. It has few resources left and nothing but war and terror to export.

  6. JuanP on Mon, 2nd Oct 2017 7:31 pm 

    Russia is, after all, the biggest country in the world and the one with the largest amount of natural resources. That, combined with their low, stable population, makes it one of the best countries in the world to live in in a collapsing world. Russia’s relative situation in the world is certain to improve in the 21st century. But I think they won’t be able to enjoy that because I expect the USA to use nuclear weapons on Russia out of spite, regardless of the consequences. The USA is fast becoming an insane asylum, witness today’s news!

  7. MASTERMIND on Mon, 2nd Oct 2017 10:15 pm 

    the US imports most EVERYTHING it needs to keep the wheels turning, even money. It has few resources left and nothing but war and terror to export.

    LOL So true! And if you think we will go down without taking everyone else to hell with us. You are as dumb as they come! Live free or die!

  8. makati1 on Mon, 2nd Oct 2017 10:33 pm 

    MM, the US has zero power to take anyone down except themselves. They number ~4% of the population of the world. When they go down, there will be 20+% of the world’s resources to share with the other 7+ billion people that Americans will no longer be able to consume.

    Your “exceptionalist/indispensable” mindset is the result of brainwashing and propaganda, not fact. The world is moving away from the DEBTOR NATION because they see it’s collapse in process. They know the money is almost worthless. They know they will never get paid back. China is spending as many dollars as possible for things of REAL value. Russia is also moving away from dollars, along with a fast growing number of other countries. They are preparing for the US demise.

    IF it happens fast, there will be some bumpy days, but the world will just move away from the US even faster. The dollar will be dumped as the trash it is. A gold backed system is likely to replace it. The US is destined to be taken down. The Great Leveling is underway. Only the end date is still unknown, but it will not be too long from now. Maybe by next year. We shall see.

  9. MASTERMIND on Mon, 2nd Oct 2017 10:41 pm 

    makati1

    the US has zero power to take anyone down except themselves.

    Except for the power of the worlds largest military and military alliances. Do you really think we will let some ignorant ugly slant eyes take over the world. LOL Get real. Like I said Live free or die…bitch

  10. makati1 on Mon, 2nd Oct 2017 11:19 pm 

    MM, again you are only parroting the brainwashing propaganda. The US is no longer the world’s strongest military. Maybe not even in 3rd place. It has a crumbling navy. An obsolete air force, and a weak and shrinking army. It’s missiles are antiques. It’s officer personnel nothing more than corporate ass kissers.

    In 70 years, it has not won a victory over even 3rd world nations. Not one. It might possibly start a nuclear war, but at the cost of the US being destroyed. The US is a paper tiger. A barking dog with no teeth.

  11. GregT on Mon, 2nd Oct 2017 11:36 pm 

    “Do you really think we will let some ignorant ugly slant eyes take over the world. LOL Get real. Like I said Live free or die…bitch”

    We? You sound about as delusional as Davy does. Do you really believe that THEY, actually give a shit about YOU, MM?

    Here’s a small clue. THEY don’t.

    Get real.

  12. Davy on Tue, 3rd Oct 2017 12:38 am 

    “We? You sound about as delusional as Davy does. Do you really believe that THEY, actually give a shit about YOU, MM?”

    Grehg, same old song and dance you sing to attack Americans. Waa Waa, you Americans think you are somebody but you are nobody. Here in my local I am somebody and assholes like you are the ones attacking me. Fuck Canadians like you and all the other anti-Americans hypocrites who can’t look in the mirror. You fuckers are sick bastards is all I can say. You are the worst grehg and going down the drain over the last 5 years. You are a disgusting example of human excrement. You have severe personality issues. Not just one but many.

  13. Dredd on Tue, 3rd Oct 2017 8:51 am 

    The gang leader of Oil-Qaeda changes, but the gang is still the murderous lot made from the dreggs of humanity.

  14. rockman on Tue, 3rd Oct 2017 11:04 am 

    “Rex Drillerson ran Exxon into the freaking ground.” The market cap of XOM from when RT took command in 2006 until when he resigned is the same. It did increase about 40% at one point mostly due to the increase in the price of oil. And then fell to the original level as when he took over, again for the same reason RT had no control over: the price of oil.

    It continues to amaze me that MM will post statements that are so easily proven as bullsh*t by a quick web search:

    http://s.wsj.net/public/resources/images/OB-PZ620_AppleX_K_20111006120025.jpg

  15. rockman on Tue, 3rd Oct 2017 11:11 am 

    “…the US imports most EVERYTHING it needs to keep the wheels turning” And more easily proven bullsh*t: “The United States has long been a superpower in food markets – and it is still the world’s largest food exporter – but it falls to third place when measuring total output. China and India produce more food than the U.S., but they end up consuming much more of their own products.”

    The US produces more food than the entire European Union put together.

    http://www.investopedia.com/articles/investing/100615/4-countries-produce-most-food.asp

  16. fmr-paultard on Tue, 3rd Oct 2017 11:26 am 

    according to lazy man farming principle, the draw down of the ogallaga aquifer and various rivers in the midwest and residential and industrial use competition, we won’t be producing much food in the future though. but water is a global problem, not just the US.

    maybe as we wind down industrial ag. then permaculture gonna take up the slack 🙂

  17. fmr-paultard on Tue, 3rd Oct 2017 11:44 am 

    mm is the genital farmer of PO

  18. MASTERMIND on Tue, 3rd Oct 2017 1:49 pm 

    Mad Kat look who won the most Nobel prizes in all categories. USA USA!! And our allies.. China and india were not even in the top twenty. LOL and that is who you think will lead the future. THey are to ugly and to dumb.

    http://fingfx.thomsonreuters.com/gfx/rngs/NOBEL-PRIZE/010050ZC27H/index.html?utm_source=Facebook&utm_medium=Social&utm_medium=Social&utm_source=twitter&utm_medium=Social&utm_source=Twitter&utm_medium=Social&utm_source=twitter

  19. fmr-paultard on Tue, 3rd Oct 2017 1:57 pm 

    quick yer yapping about how dependent we are in america on govt. elsewhere people are 100% dependent on their govt. Even supertards give high reverence to President Trump. the law and the hand guns, hard to be independent

    i report to the old white women (non jewish) at city hall. she presses a button and bunch of dudes show up with serious firepower

  20. Jean Paul Getty on Tue, 3rd Oct 2017 3:50 pm 

    my oil company was dethroned as well in the 1980’s…

  21. deadlykillerbeaz on Tue, 3rd Oct 2017 6:01 pm 

    Gazprom is a state-owned oil company, so they don’t count.

    Into the Great Wide Open by Tom Petty and the Heartbreakers:

    https://m.youtube.com/watch?v=oGTbwoDsGR4

  22. dissident on Tue, 3rd Oct 2017 7:00 pm 

    Nitpicking semantics. Gazprom’s share prices have always been distorted to ridiculously low values because of 24/7/365 hate propaganda from the west. Seems like investors are starting to get tired of fake news.

  23. Boat on Tue, 3rd Oct 2017 7:02 pm 

    gregiet,

    ” Do you really believe that THEY, actually give a shit about YOU, MM?
    Here’s a small clue. THEY don’t””.

    You are part of they and thinking about the US is a dominant part of your life. When the US is mentioned, millions of hormones burst into action.

  24. newfie on Sat, 7th Oct 2017 7:25 pm 

    Saudi Aramco produces more than both of them put together.

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