Who Dominates the Global Oil and Gas Market in 2024?

The global energy sector continues to be one of the pillars of the world economy. The most prominent oil corporations control billions in assets, operations across multiple continents, and impressive cash flows. In this report, we explore the landscape of the industry’s leading oil companies, their business models, and what makes them attractive to investors.

The Ranking of the 10 Largest Global Oil Companies

Based on quarterly revenue analyses, the world’s largest oil companies are distributed as follows:

Saudi Aramco leads with a revenue of US$ 590.3 billion, establishing itself as the largest producer and holder of oil reserves. The Saudi giant dominates production and directly influences global prices.

Sinopec and PetroChina, both Chinese, rank second and third with US$ 486.8 billion and US$ 486.4 billion respectively. Together, these two represent the strength of the Asian market in refining and oil production.

ExxonMobil (US$ 386.8 billion) and Shell (US$ 365.3 billion) maintain a strong presence as integrated Western giants, controlling operations that span exploration, refining, and distribution.

TotalEnergies, the fifth largest with US$ 254.7 billion, stands out for its diversification into renewable energies, operating in more than 130 countries.

Chevron (US$ 227.1 billion), BP (US$ 222.7 billion), Marathon Petroleum (US$ 173 billion), and Valero Energy (US$ 170.5 billion) complete the top 10, offering exposure to different segments of the oil supply chain.

Oil Market: Numbers That Define 2024

The current energy landscape reflects complex dynamics. Global demand for oil is expected to grow by 1.1 million barrels per day, reaching 102.3 mb/d. However, this growth is more moderate than in previous years, reflecting improved energy efficiency and the adoption of electric vehicles.

Global production is projected to reach a record 102.7 mb/d, mainly driven by countries outside OPEC+, including the United States, Canada, Brazil, and Guyana. At the same time, Brent prices fluctuate around US$83 per barrel, influenced by geopolitical tensions and production cut decisions.

Global commercial oil inventories contracted to 4.4 billion barrels in March 2024, indicating pressures on supply chains. Investments in the upstream segment remain robust at US$ 580 billion annually, generating over US$ 800 billion in free cash flow for corporations.

Business Models in the Oil Industry

The sector’s structure encompasses different business categories, each with distinct functions:

Integrated Companies perform the entire operational chain: exploration, production, refining, and distribution. This model offers natural diversification against price volatility, exemplified by ExxonMobil and Chevron.

E&P Companies (E&P) focus exclusively on discovering and extracting hydrocarbons. Companies like ConocoPhillips and Anadarko Petroleum operate in this segment.

Refineries and Distributors focus on processing crude into derivatives (gasoline, diesel) and their commercialization. Valero Energy and Marathon Petroleum are examples of this category.

Service Providers offer technical and operational support, performing drilling, offshore infrastructure construction, and equipment maintenance. Schlumberger and Halliburton are established players.

Brazil: Opportunities in the Oil Sector

Brazil positions itself as one of the leading global producers, with companies gaining international space:

Petrobras remains the largest national producer, a mixed state-owned company that dominates exploration to distribution. Its expertise in deep-sea extraction technologies keeps it globally competitive.

3R Petroleum specializes in reactivating mature fields, using advanced recovery techniques to maximize production in abandoned areas.

Prio (ex-PetroRio), the largest private producer in Brazil, focuses on E&P, expanding the profitability of existing assets through strategic investments.

Petroreconcavo operates onshore fields in the Recôncavo basin in Bahia, optimizing production in mature reserves with cutting-edge technologies.

Why (Why and Why Not) Invest in Oil Companies

Positive Aspects: The world’s largest oil companies pay consistent and high dividends, ensuring passive income. Global demand remains strong, guaranteeing continuous revenues. Integrated companies provide diversified exposure across the value chain.

Material Risks: Crude price volatility, influenced by geopolitics and economic factors, directly impacts profitability. Environmental regulatory pressures increase operational costs. The global transition to renewable energies poses a long-term strategic threat to fossil fuel-focused corporations.

The decision to invest in the world’s largest oil companies requires a balanced analysis of dividend and growth opportunities versus structural and environmental risks. Assessing personal risk profiles and financial objectives remains essential before any capital allocation.