Top 50 of World's Energy Companies Led by Six Nationals



Three years ago, the top six names on the PFC Energy 50 ranking of the world's largest oil & gas industry companies were ExxonMobil, BP, Royal Dutch Shell, Total, Chevron and Eni. This year's top six include Petrochina, Gazprom, Sinopec and Petrobras, National Oil Companies (NOCs), whose shares are traded on public markets, but which are majority-owned by the governments of China, Russia and Brazil. The preeminent positions of these NOCs on the PFC Energy 50 list reflect a profound change in the global energy industry. With some 65% of oil and gas reserves off-limits to International Oil Companies (IOCs), the majors are finding it increasingly difficult to deliver growth in reserves and production, while the NOCs offer more convincing growth prospects.

"The financial sector recognizes that NOCs have superior access to resources and booming domestic markets," said J. Robinson West, Chairman of PFC Energy. "Despite their enormous earnings, IOCs must communicate a new vision for growth."

During 2007, Petrochina edged ExxonMobil out of the first place position it has occupied on every previous PFC Energy 50 list, while Sinopec rose from twelfth to fifth position and Brazilian NOC Petrobras climbed from eleventh to sixth.

While Chinese companies, swept up by a combination of a booming domestic stock market and a strong energy sector, enjoyed a banner year, the Russian companies that have been top performers in recent years posted more disappointing results. State-owned companies Gazprom (stock up 13%) and Rosneft (+5%) posted gains, while Lukoil (-1%) and Surgutneftegaz (-19%) declined.

The PFC Energy 50 includes a display of top performers in each segment based on 2007 share price increases in companies' domestic markets and currencies. Traded NOCs posted an average 73% share price increase, compared with 20% for IOCs and 42% for E&P companies. The top two performers among the IOCs, Hess and BG, both benefited from association with the year's most exciting exploration news -- the offshore Brazil pre-salt play. Chinese and Indian companies, buoyed by both surging domestic stock markets and energy sector strength, posted impressive gains. As a sector, Alternative Energy delivered stellar share price performance, including the highest overall stock price gain among PFC Energy 15 companies, First Solar's 795% gain.

Technology will be a crucial factor in differentiating oil and gas companies in the future and this year's PFC Energy includes the first ever ranking of the industry's Top R&D spenders. In the lead are Royal Dutch Shell with the highest absolute R&D spending (over $1 billion) and service company Baker Hughes, which spends the largest percentage of revenues (3.6%). Despite these substantial figures, the oil and gas industry's R&D expenditures are dwarfed by those of other industries.


RELATED COMPANIES
Company: BP plc more info
Operates 28 Offshore Rigs
 - BP Midstream Partners Seeks To Raise Up To $893MM In IPO (Oct 16)
 - BP, Azerbaijan's SOCAR To Sign Caspian Sea Exploration Deal In 2017 (Oct 12)
 - Increasing the World's Oil Reserves with Digitization (Oct 09)
Company: Exxon Mobil Corporation more info
Operates 13 Offshore Rigs
 - ExxonMobil Says Julia, Hadrian South Operations Back To Normal After Nate (Oct 10)
 - Iraq's Talks with Exxon on Southern Oilfields in Final Stages-Minister (Oct 09)
 - U.S. Gulf Oil Producers Start Evacuating Staff Ahead of Tropical Storm Nate (Oct 05)
Company: OAO Gazprom more info
 - Court Rejects PGniG's Attempt To Limit Gazprom's Use Of Opal Pipeline (Oct 13)
 - Russia's Gazprom Signs LNG Supply Deal With Ghana (Sep 18)
 - Gazprom Says Sanctions Won't Stop Nord Stream 2 Pipeline Project (Aug 30)
Company: Petrobras more info
Operates 35 Offshore Rigs
Manages 12 Offshore Rigs
 - Brazil Regulator Allows Petrobras To Source Libra Rig Hull From Abroad (Oct 04)
 - Exxon's Big Bet on Brazil Oil Could Signal Major Pre-salt Role (Sep 29)
 - Exxon Mobil Bets on Brazil, Buys 10 Oil Blocks in Auction (Sep 28)
Company: Total S.A. more info
 - Total CEO: US Shale Oil Industry To See Wave Of Investment (Oct 18)
 - Total's CEO Says Will Try To Move Ahead With Iran Gas Project (Oct 17)
 - Total Expands Presence in Mexico (Oct 12)
Company: Chevron Corporation more info
 - Canada's Keyera Signs Pact With Chevron To Transport, Store NGL (Oct 10)
 - Chevron Starts LNG Output at Australia's Wheatstone (Oct 09)
 - Petrofac Extends North Sea Contract with Chevron (Oct 05)
Company: PetroChina more info
 - Iraq's Talks with Exxon on Southern Oilfields in Final Stages-Minister (Oct 09)
 - Ecuador to Offer Oil Blocks Under New Bidding Terms in Jan (Oct 06)
 - Kazakhstan To Sell 5 Bcm Of Gas To China For $1B (Oct 03)
Company: ENI more info
Operates 12 Offshore Rigs
 - Eni Bets Big on Zohr Explorer Finding New Treasure (Oct 06)
 - Eni Inks Cooperation Deal With China's CNPC (Sep 13)
 - Italy's Eni Confident Of Dividend Even With Lower Oil Prices (Jul 28)
Company: Sinopec more info
 - Buyers Eye Sinopec's Argentina Oil Assets in Sale Worth Up to $1B - Sources (Oct 09)
 - Shengli Oilfield Cuts Internet For Some Offices After Cyber Attack (Aug 21)
 - Sinopec Engineering Arm Taps Asia Petrochemicals Growth (Aug 21)