The Top Oil Companies Play A Major Role In The Energy Markets

There are numerous Oil companies, which are scattered all over the world

. The Top Oil companies are the main reason or rather the backbone of improving the economic condition of a nation. Apart from supplying the end product to the residential, commercial and industrial users, oil companies offer huge job opportunities and they also help in fostering a better relationship among countries. These globally acclaimed leaders produce oil not only for domestic consumption but also for the purpose of exports. Exporting oil to the nations, which are in great need of it, brings huge profits to the oil companies. Though huge investment is required in producing oil, the returns on investment are very high.

The main reason why Oil companies are growing is because of higher returns earned by oil production. Saudi Aramco, Exxon Mobil, PDV, BP, NIOC, Royal Dutch Shell, Chevron, Total, CNPC and Conoco Philips are the 10 Top Oil companies in the world. The job responsibilities of oil companies is not that easy as the companies indulge in various processes such as exploring oil reserves, drilling pipes into oil wells or rigs, extracting the crude oil and converting it into a more usable form, distributing the finished product. The oil companies make sure that the oil is readily available to meet the demand at the right time.

Most of the national oil companies or NOC are under the regulations of the government and these government regulated companies control majority of the oil production and also the proven oil reserves. The investor owned Top Oil companies or private oil companies also play a major role in the oil market. Organization of the Petroleum Exporting countries (OPEC) is the key factor in assigning the production quota for its member countries. The OPEC countries hold majority of proven reserves and they are considered to be major global players in the world oil market. These OPEC countries could have a direct impact on the upward pressure on prices if the demand for crude oil keeps rising. The decisions made by the OPEC members have a greater influence in the oil market.

The International oil companies (IOC) or investor owned oil companies such as Exxon Mobil, BP and Royal Dutch Shell aim at increasing the shareholder return and they indulge in producing oil at a faster pace so that they can sell their product in the most competitive markets. National Oil companies on the other hand strike a balance by fulfilling profit oriented objectives as well as providing employment opportunities to its citizens. The price at which crude oil offered by the oil companies to its domestic consumers is lesser than the price offered to the customers all over the world. Thus the Top Oil companies have a great influence on the market supply and demand factors in the oil market.

by: Sunil Punjabi

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