What Exactly Is Big Oil?
Big Oil, a term that has become synonymous with the world’s largest and most influential oil and gas companies, is more than just a catchy phrase. It’s a powerful force in global politics and economics, shaping everything from energy policies to international relations.
The Origin of Big Oil
Back in 1998, Morgan Stanley published a report titled ‘The Era of the Super-Major,’ which predicted significant consolidation among major oil companies. This report marked the beginning of what we now call Big Oil. The term gained traction in print during the late 1960s and referred to seven specific supermajors, but its modern usage has evolved.
The Seven Sisters: A Brief History
Originally, Big Oil referred to the seven companies that formed the Consortium for Iran, known as the Seven Sisters. These were giants like ExxonMobil, Shell, TotalEnergies, BP, Chevron, and Eni. However, with time, the term has become more inclusive, often excluding national producers and OPEC oil companies.
The Maritime Industry’s Big Oil
Interestingly, in the maritime industry, six to seven large oil companies dominate the crude oil tanker chartering business, known as Oil Majors. These include Shell, BP, ExxonMobil, Chevron, TotalEnergies, and ConocoPhillips. Their influence extends beyond just shipping; they play a crucial role in global energy markets.
The Consolidation of Power
The process of consolidation led to the creation of some of the largest global corporations. For instance, mergers like BP and Amoco, ExxonMobil, and Total-Petrofina-Elf demonstrated the Super-Major thesis. These combinations created companies that now rank among the top 25 on the Fortune Global 500.
Big Oil’s Economic Power
The six Supermajors remain within the top 25 of the Fortune Global 500, with combined profits totaling $494.8 billion between 2004 and 2007. Their control over around 6% of global oil and gas reserves is a testament to their economic might.
The Debate Over Big Oil
While nearly all accounts include ExxonMobil, Chevron, Shell, BP, Eni, and TotalEnergies in the Big Oil group, some debate includes ConocoPhillips due to its significant influence. Valero Energy is sometimes referred to as a ‘Big Oil’ company despite not having significant upstream activities.
The Role of Lobby Groups
Other companies associated with Big Oil include Koch Industries and Wilks Masonry, which have funded lobby groups and media outlets aligned with the industry. This influence extends beyond just business; it shapes public opinion and policy decisions.
A Final Thought on Big Oil
Big Oil is a complex entity that has evolved over time. From its origins as the Seven Sisters to today’s Supermajors, these companies have played a pivotal role in shaping global energy markets. Their influence is undeniable, and their future will continue to be a topic of discussion and debate.
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This page is based on the article Big Oil published in Wikipedia (retrieved on January 31, 2025) and was automatically summarized using artificial intelligence.
