Top oil and Gas companies Garner $200 Billion+ in Revenues

The oil sector was able to break milestones and endure substantial changes in 2022, a year marked by erratic energy prices and global geopolitical shifts. Russia's invasion of Ukraine helped the sector to perform well. According to the Forbes Global 2000, the profits of the largest oil firms more than doubled, reaching a startling $219 billion. The financial boon not only increased product expenditures but also led businesses to re-evaluate their energy transition plans.

Biggest oil and gas companies in the world

In 2022, there were eight dominant oil and gas companies, each with revenues of at least $200 billion. Saudi Aramco topped the list with a staggering $589.5 billion in revenue. The Saudi state-owned company's resiliency and adaptability were demonstrated by the fact that its revenues have even more than doubled since 2020. With revenues of $457.4 billion and $453.6 billion, respectively, PetroChina and Sinopec Group came in second and third. As China continued to be open for business in the early pandemic months, these enterprises had led the sector in 2020.

Revenues for market leaders Shell and ExxonMobil reached $365.9 billion and $393.2 billion, respectively, reflecting significant increase. When taking into account the need for transportation and heating, oil still reigns supreme. According to the International Energy Agency (IEA), oil will account for 29% of the world's energy supply in 2020. The consumption patterns of the main oil-consuming countries revealed this dependence.

Oil consumption pattern

The United States consumed an astounding 19,140 million barrels of oil daily in 2022, closely followed by China at 14,295 million barrels daily. The consumption levels of other countries were insignificant in comparison to those of these giants, the remaining top eight countries together consumed barely two-thirds of what China and the U.S. did. With a daily consumption of 5,185 million barrels, India took third place, after Saudi Arabia (3,876 million barrels), Russia (3,570 million barrels), and Brazil (2,512 million barrels).

Analysis of the variation in oil usage between 2012 and 2022 revealed important alterations. With consumption growth rates of 42 and 41 percent, respectively, China and India emerged as growth leaders while the U.S. saw just a modest 9 percent gain in oil consumption. Notably, three of the five BRICS nations have significantly increased their consumption of fossil fuels over the previous ten years, while four of the five were among the top oil consumers.

Major oil and gas firms struggled with variable profitability as the global environment continued to change. However, these businesses produced sizable profits despite a drop from their earlier profits. For instance, Saudi Aramco reported a net income of $62 billion in the first half of 2023, a 30 percent decrease from the prior year but still far exceeding its international rivals. While Chevron's income fell by 30% to $12.6 billion from $18 billion, ExxonMobil generated earnings of $19.3 billion, a 17% decline. 

A big British-Dutch corporation, Shell, took a significant hit when its profits fell by almost half, from $25 billion to $11.9 billion, or 54 percent. British-owned BP, in contrast, defied the trend by outperforming its H1 2022 performance. Due to the Ukraine conflict, BP had to sell its interest in Rosneft, but it persevered, demonstrating the industry's complex dance between profits and strategic changes.

The geopolitical environment and environmental concerns are all influencing how big oil firms are position themselves and move forward. The industry's adaptability to global trends will determine how it will function in the broader energy transition in the future.