For 12 years ExxonMobil has reigned as the world’s largest energy company. But according to S&P Global Platts 250 Global Energy Company’s latest ranking, Russian energy giant Gazprom has taken the top spot.
Headquartered in Moscow, Gazprom focuses primarily on natural gas exploration and trading. However they also have interests in geological exploration, production, transportation, storage, gas processing, gas sales, gas condensate, and the generation and marketing of heat and electrical based power. They have the largest reserves of natural gas in the world, in addition to being one of Russia’s top four oil producers.
Gazprom, though technically listed as a private company, is majority-owned by the Russian government.
The first five companies also include Germany’s E.ON (which climbed 112 places to come in second place), India’s Reliance Industries, Korea Electric Power, and the Chinese CNPC. ExxonMobil dropped to ninth place.
Harry Weber, a senior natural gas writer at S&P Global Platts said, “European utilities and North American pipeline operators got a boost from sticking to what they know best and shying away from more risky enterprises and territories.”
These ratings are determined based on every financial indicator a company can have. This includes value of assets, total revenue, net profits, and many others. Every company on the list has assets of more than $5.5 billion.
The top ten companies earned a combined total of $63.7 billion last year, which is a 14% drop from the combined total of $74.3 billion from the year prior.
What the list also revealed was signs of a tangible impact on the energy industry. For the first time the biggest movers were not integrated oil and gas companies, but pipeline companies and utilities.
Additionally, a noticeable trend in all the companies that saw a significant drop were those who invested heavily in coal interests. As more countries push towards clean renewable energy, the coal industry has taken a noticeable hit.
Other Houston-based companies also made the list; Valero energy Corp ranked 8th, Enterprise Products Partners LP ranked 17th, Phillips 66 ranked 20th, Energy Transfer Equity LP ranked 62nd, Plains All American ranked 128th, and ConocoPhillips ranked 174th.
Article written by HEI contributor Kevin Abbott.