ExxonMobil Loses Its Positions on the Global Oil Market 

Oct 23rd, 2017

As the oil prices have shifted in value and have recently gone drastically down, the tables have turned on the global oil arena. Not only ExxonMobil, the twelve-year long leader of the energy sector, gave away its top position to Russia’s Gazprom, but it also fell strikingly down along the S&P Global Platts’ ranking, coming at the ninth place.

Through classified as a public joint stock company, Gazprom’s shares are predominantly owned by the Russian government itself, which points to the favorable influence of the company’s prosperity on Russia’s economy.
With Gazprom leading the ranking, its gas exploration potential and trading ambitions soon had been set to be the ultimate emphasis of other gas and pipeline companies leading their way up the list this year. Among such were Germany’s utility service provider E.ON, which jumped from 114th place all the way to the 2nd, and British energy supplier Centrica, which traveled from 156th place to 15th. Japan’s JXTG and Brazil’s Eletrobras have also both considerably risen within the ranking.

Following Gazprom and E.ON, South Korea’s Electric Power, China’s Petroleum & Chemical, Russia’s Lukoil, Indian Oil Corp, US Valero Energy, and France’s Total, along with ExxonMobil, have claimed their positions as the absolute sector leaders this year.

Platts assured that its 2017 estimated were the most thorough in comparison with that of any other year starting in 2001. This year’s review was concretely based on the study of companies’ financial indicators, such as the value of their assets, income, receipts, and returns on investments.

Geographically-wise, it is worth mentioning that Asia-Pacific and EMEA regions both had four domestic companies at the top ten of the list, while both North and South Americas were only represented by two companies.

The overall revenues of all the top ten energy sector companies in 2017 sum up to $1.1 trillion as opposed to $830 billion last year, which indicates significant market growth and development. However, their reported combined profits last year were 14% lower than the year before, which means that we will still have to wait and see how these changes on the arena unfold for the companies themselves.