What is Big Oil?

July/27/2013 5:35AM
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We can all name them, right? Exxon/Mobil, Shell, Chevron, BP, Conoco/Phillips, Marathon, and Sunoco. That’s Big Oil.

Not really. Here’s the list of the world’s biggest oil companies by production.

Mid 2012 Ranking of the World’s Biggest Oil & Gas Companies — Forbes

by David Rachovich

World’s Top 25 Oil and Gas Companies
Rank
Company
Production Volumes*
(million barrels per day)
1.
Saudi Aramco (Saudi Arabia)
12.5
2.
Gazprom (Russia)
9.7
3.
NIOC (Iran)
6.4
4.
ExxonMobil Corp. (USA)
5.3
5.
PetroChina (China)
4.4
6.
BP (UK)
4.1
7.
Royal Dutch/Shell (NL/UK)
3.9
8.
Pemex (Mexico)
3.6
9.
Chevron Corp. (USA)
3.5
10.
KPC (Kuwait)
3.2
11.
ADNOC (UAE)
2.9
12.
Sonatrach (Algeria)
2.7
13.
Total (France)
2.7
14.
Petrobras (Brazil)
2.6
15.
Rosneft (Russia)
2.6
16.
MoO (Iraq)
2.3
17.
QP (Qatar)
2.3
18.
Lukoil (Russia)
2.2
19.
Eni (Italy)
2.2
20.
Statoil (Norway)
2.1
21.
ConocoPhillips (USA)
2.0
22.
PDVSA (Venezuela)
1.9
23.
Sinopec (China)
1.6
24.
NNPC (Nigeria)
1.4
25.
Petronas (Malaysia)
1.4

All but 5 of the largest oil companies in the world are state-owned and state-run companies. Run by sheiks, dictators, and kings. Or, by non-democratic governments. Russia has three in the list and China two.  Note that Iran is number three ahead of Exxon/Mobil. You wonder why Russia and China continue to back Iran?

Our neighbor to the south runs Pemex. Mexico has not done well in the oil business. They have the reserves but have developed almost no technology for producing the untapped reserves. Their production has shrunk from 3.4 million barels a day in 2003 to 2.5 million in 2012. Finally, they held an auction to see who would bid to produce the oil for them. They put six sites up for bid. There were no bids on three. Pemex offered to pay for all roduction costs for the first ten years and a fee-per-barrel if production exceeds costs. Bids on  the three sites receiving bids were from one cent to 98 cents a barrel. Basically, winning bidders just want to pour it to Pemex on production costs and not worry about royalties. It’s a start from scratch operation for them. Pemex will front all the equipment and winning bidders will bring nothing to the site. Except the technology Mexico has been unable to develop.

Many of the other state owned oil companies hire US companies to produce their oil. But, most, unlike Mexico, don’t put  their producers over the barrel, excuse the pun.

Does it serve us better to not have a state-run oil industry. Mexico  has the oil, but can’t develop the oil. The US has the oil and is developing it by fracking on non-pubic lands. Here the state oil company, ObamaOil, is limiting production on public lands and if they had their way, they would stop fracking. Look what they are doing to coal-fired untilites and coal mines. Closing them much faster than alternative energy will be able to replace the power.

But, even in America, big oil is government. The government has it’s fingers in every aspect of the oil business here. From denying pipelines(Keystone) to biofuels and ethanol mandates. Everything the US government does contriutes to higher energy prices for the public. The biofues mandate is one example. There is a mandated biofuel requirement for US refiners. But, there is no biofuel available to meet the mandate. Hence, refiners must buy biofuel credits. That cost is passed back to we consumers.

It’s the same with ethanol. There is an ethanol volume requirement. It was established in the Bush administration. It doesn’t reflect the current gasoline demand which has shrunk. To meet the volume demand refiners would need to blend more than 10% ethanol. But, car manufacturers will void the warranty if more than 10% is put in most cars. Once again, ethanol credits must be purchased to meet the shortfall. This is driving up ethanol prices to triple what they were a year ago. Plus the credits, which are a tax, must be put on the pump price. These hidden taxes are how ObamaOil runs the oil business in a country that is supposed to embrace free-enterprise.

Obama would like nothing more than to have a state owned and run oil company here. Just like he wants to run the health care business. If you think the Mexican government has done a lousy job of running Pemex, you can just imagine how ObamaOil would be run.

When the media goes on another rant about gasoline prices and Big Oil, just remember who Big Oil really is. It’s Saudi Arabia, China, Russia, Iran, Iraq, Venuezula, Mexico, Kuwait, UAE, Qatar, and Nigeria. The great democracies of the world. Here it’s ObamaOil, with asperations to be like Russia and China, but with only enough power yet to screw things up by locking in production, stopping efficient transportation, and adding hidden taxes to your fuel and heat costs.

The greatest technology to get oil from hostile environments lies here in the US. But, foreign governments hire that technology since we restrict their ability by government fiat. But, our government gets it’s taxes from those jobs in foreign places. Until that technology sees no further need to headquarter here.

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Comment (1)

  1. yamini says:

    It is a good information for me. In India, there is lot of oil company. The oils are made naturally

    Marachekku oil in bangalore it is good for health and beneficial for life.

Leave a Reply to yamini