Energy TNC's, OPEC countries and other large producers are
increasingly powerful in the global supply of energy
Investigate the increasing economic and political power of
selected energy TNC's and producer groups
http://en.wikipedia.org/wiki/Petroleum_industry
National state energy companies v
TNC’s
• Historically, the energy industry has been
dominated by large TNC’s –they are some of
the largest corporations in the World
• Their annual profits are colossal –particularly
when oil prices are high
• However, their power is being challenged –
firstly by OPEC and more recently by the rise
state owned energy companies.
How are the TNC’s under threat?
The upstream oil sector is a term commonly used to refer to the searching for and
the recovery and production of crude oil and natural gas. The upstream oil sector is
also known as the exploration and production (E&P) sector.
The midstream industry processes, stores, markets and transports commodities such
as crude oil, natural gas, natural gas liquids (LNGs, mainly ethane, propane and
butane) and sulphur
The downstream oil sector is a term commonly used to refer to the refining of crude oil,
and the selling and distribution of natural gas and products derived from crude oil. Such
products include liquified petroleum gas (LPG), gasoline or petrol, jet fuel, diesel oil,
other fuel oils, asphalt and petroleum coke.
The downstream industry touches consumers through thousands of products such as
petrol, diesel, jet fuel, heating oil, asphalt, lubricants, synthetic rubber, plastics,
fertilizers, antifreeze, pesticides, pharmaceuticals, natural gas and propane.
Oil producing countries
According to the International Energy Agency(IEA), in 2011 the top ten oil-producing
countries accounted for over 63% of the world's oil production. As of 2012 November,
Russia produced 10.9 million barrels of crude per day, while Saudi Arabia produced 9.9
million barrels.
In 2012 November the IEA stated that the United States would surpass Russia and
Saudi Arabia and become the world's largest oil producer sometime between 2017 and
2020.
http://en.wikipedia.org/wiki/List_of_countrie
s_by_oil_production
IOC International oil
Companies
NOC: National oil
companies
Big oil: TNCs
•
‘Supermajor’ TNCs
State owned oil giants
Total
Fr
Saudi Aramco
Saudi Arabia
BP
UK
Gazprom
Russia
Shell
UK/Nl
CNPC
China
Chevron
USA
Petrobras
Brazil
ExxonMobil
USA
NOIC
Iran
ConocoPhilips
USA
PDVSA
Venezuela
•
Supermajor and
other oil and gas
TNCs control most
oil and gas
extraction, refining
and distribution.
State owned oil
companies own /
control access to
95% of world oil
and gas reserves
• http://www.forbes.com/pictures/mef45glfe/n
ot-just-the-usual-suspects-2/
• http://petroleuminsights.blogspot.co.il/2011/
12/suncor-up-conocophillips-down-inpiws.html#.UhDOiOrRrIU
When considering Oil production statistics 4 points arise:
1. Of the top 20 oil companies at least 8 are state owned. (they are not TNC’s) They are
public rather than private sector companies. They are government owned and are
more active in the realms of geopolitics. (the study of the ways in which political
decisions and processes affect the way space and resources are used. The relationship
between geography, economics and politics)
2. The remaining companies are relatively free of direct political influence and driven
more by economic considerations and shareholders.
3. Most of the top companies are involved in a range of operations of which pumping oil
is only one. They are also engaged in transporting and refining oil and in
petrochemical industries. Exploration for new reserves and the search for new sources
are also important.
4. Their diversity and presence in many countries ensure that TNC's will continue to be
key players.
saudiaramco
Exxon main site
Exxon UK