ENERGY ANALYTICS

In 2023, Saudi Arabia’s oil and gas giant aramco reported a net income of 121 billion USD. This surpasses the combined profit of five leading international companies — Chevron, bp, ExxonMobil, TotalEnergies, and Shell — whose total net income amounted to 114 billion USD for the same period. Aramco's net income was even higher in the previous year, reaching $161 billion in 2022. The decline in 2023 is primarily attributed to falling crude oil prices, lower sales volumes, as well as lower profitability of oil refining and chemical industry. Once, about 80% of the oil and gas market was dominated by the so-called "Seven Sisters" — major oil companies like British Petroleum, Exxon, Gulf Oil, Mobil, Royal Dutch Shell, Chevron, and Texaco. Each of these companies held a significant market share. In 2007, Financial Times indicated the term "New Seven Sisters" to refer to seven state-owned companies: Saudi Aramco (Saudi Arabia), CNPC (China), NIOC (Iran), Gazprom (Russia), Petrobras (Brazil), PDVSA (Venezuela), and Petronas (Malaysia). While international corporations used to set prices and market trends, we now see state-owned companies becoming the dominant players, with traditional oil giants taking on supportive roles. The infographic also illustrates that one state-owned oil company outperforms the combined profits of these international giants. This does not even account for other large state-owned companies such as ADNOC Group, QatarEnergy, and Kuwait Petroleum Corporation.

📊 Gas Production Dynamics of Major Oil Companies Over the past decade, major oil and gas companies have seen a significant drop in gas production. ExxonMobil's output fell from 2 million barrels of oil equivalent (boe) per day in 2013 to 1.3 million boe per day in 2023. Shell experienced a similar decline, dropping from 1.8 million to 1.3 million boe per day. In contrast, state-owned companies have generally shown stable or increasing production. Rosneft increased its production by 2.5 times, from 0.6 million boe per day in 2013 to 1.5 million boe per day in 2023. PetroChina nearly doubled its production from 1.3 million to 2.3 million boe per day. Despite a brief decline in 2018, aramco has resumed increasing its gas production and maintained its production at 2 million boe per day. Overall, national companies have focused more on gas production and they play a crucial role in the development of the sector.

We've updated the oil & gas reserves chart with Rosneft and Gazprom companies. Gazprom & Rosneft stopped publishing their reserves data under PRMS/SEC standards since 2020/2021. Therefore, the chart reflects only the most recent available data. Although the data is not the most current, it still provides valuable insights. For instance, Gazprom's proven reserves (1P) in billion barrels of oil equivalent amounted to approximately half of aramco's while Rosneft had 3-4 times reserves compared to major companies like ExxonMobil and Chevron. Additionally, the current field acitivities performed by these companies may promise potential growth for their reserves in the future. Currently, reserves data from ADNOC and QatarEnergy is not available in open sources. We will update the chart as soon as this information becomes available.

🛢Proven Reserves (1P) of Major Oil & Gas Companies The stability of a resource base, including its size, life index, and effective management, are crucial criteria for assessing the investment attractiveness of an oil and gas company. 📊 We present an infographic on the proven reserves (1P) of major oil and gas companies for 2023 year-end* (in boe - billion barrels of oil equivalent). aramco is the undisputed industry leader, with 1P proven oil and gas reserves totaling 251 billion boe. Other partially state-owned companies, such as PetroChina and Petrobras, also show high indicators. Previously, we shared an infographic detailing the dynamics of proven reserves over the past 10 years. There is noted that state-owned companies have demonstrated more stable reserves in recent years. Link to the post is here: https://lnkd.in/e8BawnHu Proven reserves (1P) of major companies are reported according to the SEC system, except for Aramco which report according to the PRMS system. *Please note for PetroChina data for 2023 isn't available, it is indicated as of 2022 year-end.

📈 Major oil and gas companies continue to expand production despite green initiatives. Companies' quarterly data allows to track production volume trends, identify seasonal fluctuations, and recognize long-term patterns. Using historical data, we can also project future production, which supports strategic planning. 📊 The infographic shows that production volumes for most companies in the first quarter of 2023 and 2024 remained relatively stable, with deviations not exceeding 0.1 million barrels of oil equivalent per day. Notably, Chevron has shown significant progress, with daily production increasing by 0.3 million barrels of oil equivalent in 1Q from 2023 to 2024. 📌 No significant declines in metrics are observed. Therefore, it can be concluded that the industry continues to maintain stability and expand production, despite "green" trends.

🔹Kazakhstan is among the leaders in wind power capacity growth. According to IRENA data, Kazakhstan is now among the countries experiencing significant growth in wind energy. From 2019 to 2023, the installed capacity of wind power plants in the country increased from 284 MW to 1440 MW, representing a 57% CAGR* or a five times increase. *CAGR (Compound Annual Growth Rate) is used in the energy sector to measure the annual growth rate of metrics. For example, CAGR can be used to assess the annual growth of installed capacity for wind or solar power plants in a particular country or region. 📈 The top 7 countries with the fastest growth rates also include Saudi Arabia, Russia, Vietnam, Israel, Moldova, and Bolivia (see infographic). Saudi Arabia's CAGR stands at 412%, driven by an increase in capacity from 3 MW to 403 MW between 2021 and 2022. In Russia, wind power capacity has grown 25 times since 2019, with a CAGR of 179%. Vietnam also shows positive dynamics, with a CAGR of 138%, equivalent to a 16 times increase. 📊 Developed countries with substantial installed capacities have seen average growth. From 2019 to 2023, countries like Sweden and China have a CAGR of 18% and 20%, respectively. In other developed countries, growth is below 15%: the USA at 11%, Australia at 10%, France at 8%, and both Italy and Germany at 3%. Please note that the numerical capacity figures vary significantly between countries. 📝 CAGR figures can help investors and stakeholders measure and compare annual growth rates, which is crucial for assessing the efficiency and sustainability of this sector's development.

US Shale Oil Boom or How It Revived US Oil Production There are two types of hydrocarbon resources: conventional and unconventional (shale). Shale oil is extracted using unconventional methods. Due to the growing scarcity of traditional (crude) oil, governments and oil companies worldwide are investing in unconventional sources. Shale oil and gas are found worldwide. Tight (shale) oil and gas have significantly strengthened the US economy by reducing dependence on imported energy and making the US the world's largest oil producer. The shale oil boom in the US began after 2007. Since then, shale oil's share of production grew from 8% to 65% current times, an eightfold increase. Meanwhile, the share of conventional oil dropped nearly threefold from 92% in 2007 to 35% in 2023. The infographic suggests that the Hubbert peak oil theory was accurate regarding conventional oil. However, it did not account for future extraction technologies for unconventional sources. The main factors contributing to the shale oil boom include hydraulic fracturing (fracking) and horizontal drilling technologies. As a result, many large enterprises significantly increased shale oil production, preventing the anticipated peak in oil production.

Growth in Gas Production by Oil Companies Over the Last Ten Years An infographic shows the oil and gas production volumes of the major oil and gas companies for 2013 and 2023. These indicators provide a visual comparison of changes over the past decade. National companies such as Saudi aramco, PetroChina International, Rosneft and Petrobras are primarily focused on oil production. However, we see that their share of gas production has increased over the last 10 years: Saudi aramco's share has increased fourfold, Rosneft's has tripled, and PetroChina International's has nearly doubled. Major international companies such as Shell and ExxonMobil have experienced a slight decrease in gas production. Meanwhile, the sharp decline in bp's oil production over the last two years has not significantly affected its gas production, which remains stable compared to 2013. In contrast, Chevron's gas production has increased while its oil production has declined. This data highlights significant changes in the strategies of major oil and gas companies over the past decade. Gas is considered a more environmentally friendly fuel compared to oil. The increase in gas production may indicate efforts by companies to reduce their carbon footprint and adapt to modern environmental standards. Additionally, companies with more balanced production portfolios may be less exposed to fluctuations in oil and gas prices.

🛢Oil Refining of Major Oil and Gas Companies, 2013-2023 Refining plays a crucial role in adding value to the oil and gas industry by transforming crude oil into products like gasoline, diesel, kerosene, and other petrochemicals. 📊 There is an infographic showcasing the oil refining dynamics of the largest companies over the past decade. These refinery data allow to compare major oil and gas companies based on refining volumes and how these metrics have evolved over time. Over the past 10 years, ExxonMobil has consistently led in oil refining volumes, averaging around 4 million barrels of oil per day (bod) or/and more. Shell's refining indicator has significantly decreased, dropping from 2.9 million bod in 2013 to 1.3 million bod in 2023. This decline accelerated notably in 2020 due to the pandemic's impact. Similar trends are observed with Petrobras, TotalEnergies, and bp, all experiencing declines since 2020. Stability Among Others: companies like Eni, Chevron, and KazMunayGas have maintained relatively stable refining volumes over the past decade. In European countries, the decline in refining volumes can be attributed to several key factors: 🔹 Decreased demand for fuel due to the increasing market share of electric vehicles. 🔹Reduced investment in the industry, leading to the closure of a number of refineries. 🔹Aging of existing plants and lack of competitiveness compared to new large capacities in the Middle East and Asia. 🔹The impact of the Green Agenda, including additional taxation and regulation. 🔹Imposition of bans on Russian oil and the search for alternatives. Experts express concerns about the future of the refining industry, despite its high profitability. Will the closure of European refineries mark just the beginning of global changes in the oil and gas sector?

Oil & Gas Production per Employee, 2023 The calculation is based on the average daily production of oil and gas in 2023, measured in barrels of oil-equivalent per day (BOED), divided by the total number of employees in the companies, as shown in the infographic. A high value indicates that a company is using its workforce more efficiently to extract oil and gas. For instance, in 2023, Saudi aramco produced 175 BOED per employee. This figure is 2,5 times higher than Equinor (69) and Chevron (68), and 6 times higher than companies like Shell (27) and bp (26). For National Company KazMunayGas this indicator was 13 BOED per employee last year. This represents a slight increase compared to previous years: in 2021-2022, the company's indicator was 12 BOED, and earlier it was no higher than 10 BOED. We have previously posted the dynamics of this indicator over the last 10 years for major oil & gas companies. More details can be found on our page. Criteria used for this analysis: 1. All of these large companies have upstream units and downstream units, which allows them to be compared with each other. 2. Gas production has been converted from m3 to BOE. 3. It was the total number of employees of companies that was taken, since the number of employees in the upstream units was not available for some companies.