Sylvie Willis
The biggest fossil fuel companies, often referred to as Big Oil, are some of the world's largest publicly traded and investor-owned oil and gas companies. These companies, also known as supermajors, include ExxonMobil, Shell, TotalEnergies, BP, Chevron, Eni, and ConocoPhillips. They are known for their economic power and influence on global politics and have been associated with the fossil fuels lobby. While some of these companies are investing in renewable energy and green technologies, their primary focus remains on fossil fuel production, and their business models continue to rely on oil and gas extraction.
| Characteristics | Values |
|---|---|
| Term used to describe the world's largest publicly traded and investor-owned oil and gas companies | Big Oil |
| Number of companies that make up Big Oil | 5, 6 or 7 |
| Companies that are most frequently mentioned as supermajors | ExxonMobil, Shell, TotalEnergies, BP, Chevron, Eni, ConocoPhillips |
| Expression used to refer to an oil cartel | Seven Sisters |
| Year in which the expression "Seven Sisters" was coined | 1975 |
| Company that reported 2022 revenues of $124.0 billion | Reliance Petroleum |
| Company that reported 2017 revenues of $14.9 billion | Neste |
| Company that reported 2017 revenues of $3.2 billion | Bulgarian Energy Holding |
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What You'll Learn
ExxonMobil, Shell, Chevron, and other major fossil fuel companies
The term "Big Oil" is often used to refer to the world's largest publicly traded and investor-owned oil and gas companies, or "supermajors". ExxonMobil, Shell, and Chevron are three of the most well-known companies included in this group, alongside other major fossil fuel companies like TotalEnergies, BP, and Eni. These companies are known for their economic power and influence on politics, particularly in the United States, and are often associated with the fossil fuels lobby.
ExxonMobil is one of the largest integrated fuels, lubricants, and chemical companies in the world. It has three primary businesses that provide products that enable modern life, including energy, chemicals, lubricants, and lower-emissions technologies. The company has an industry-leading portfolio of resources and is focused on strengthening its position by expanding its low-cost, high-return oil and natural gas operations.
Shell, another major player in the fossil fuel industry, has faced criticism and lawsuits from climate change activists and environmental groups for its reliance on fossil fuels. In 2019, Greenpeace and Friends of the Earth Netherlands started a lawsuit against the company, demanding that it stop extracting oil and gas and cut its greenhouse gas emissions to zero by 2050. Shell has responded by expressing its support for the goals of the 2015 Paris Agreement and promising to cut its contribution to global warming.
Chevron, the third company in the trio, is also working to reduce its environmental impact. The company is investing in carbon capture and storage technologies, managing methane emissions, and building renewable fuels businesses to produce more energy with lower carbon intensity. While these companies are taking steps towards sustainability, they continue to be major players in the fossil fuel industry, influencing energy production and consumption on a global scale.
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Fossil fuel companies' climate strategy
The biggest fossil fuel companies, also known as "Big Oil", include ExxonMobil, Shell, TotalEnergies, BP, Chevron, and Eni. These companies have historically been associated with climate denial and the spreading of disinformation to obstruct climate policies and delay action. However, in recent years, they have shifted their strategy to more nuanced forms of climate delay and "greenwashing".
For example, a study by Naomi Oreskes and Geoffrey Supran examined ExxonMobil's subtle forms of climate propaganda, which included a systematic fixation on consumer energy demand and representing climate change as a "risk" rather than a reality. This shift in language, described by an ExxonMobil manager as a "careful reset", aims to reduce the company's exposure to charges of marketing a deadly product. ExxonMobil has also been accused of climate disinformation campaigns, with the company facing lawsuits alleging deceptive practices and potential fraud.
Despite their claims of sustainability, the climate strategies of these large fossil fuel companies fall short of aligning with the goals of the Paris Agreement. For instance, Eni plans to increase its oil and gas production by 2-3% annually by 2030, resulting in fossil fuel production 78% above the NZE (Net Zero Emissions) target. Similarly, Shell has committed to increasing its production by 1% per year by 2030, with its fossil fuel production expected to be 23% above the NZE. These companies' business models remain focused on oil and gas extraction, with diversification into cleaner energies representing only a minority share of their future production.
To maintain their dominance and influence, these companies have employed various tactics, including lobbying politicians and regulators, influencing host governments to keep taxes and royalties low, and colluding to control oil supplies and prices. While they pay lip service to renewable technologies on social media, their primary goal is to delay the transition to a renewable future and maintain their profits. As a result, they continue to prioritize distributions to shareholders and investments in fossil fuels over sustainable energy solutions.
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Fossil fuel investment risks
Fossil fuel companies are increasingly viewed as risky investments. Fossil fuel stocks have underperformed the market over the last decade, with the sector posting an annual loss of nearly 5% in 2023. Fossil-free equity indices are gaining market adoption and proving to be better investments. As the long-term outlook for fossil fuels remains negative, investors are increasingly seeking sustainable alternatives.
The concept of carbon asset risk (CAR) is gaining traction, as it is recognised that a significant quantity of the world's fossil fuel resources may be left unused to meet climate targets. Institutional investors face exposure to a range of climate change-related risks, including CAR. A global clean energy transition is underway, with investments in clean energy outstripping investments in traditional fossil fuel infrastructure.
The largest fossil fuel companies, often referred to as "Big Oil", include ExxonMobil, Shell, TotalEnergies, BP, Chevron, Eni, and ConocoPhillips. Despite their economic power and political influence, these companies are facing pressure to reduce their oil and gas production to address climate change. Some companies, like Shell and Equinor, have backtracked on their commitments to reduce production, instead focusing on expansion strategies that include liquefied natural gas (LNG) and new export terminals.
The investment consulting group Mercer has concluded that annual investment returns for coal, oil, and gas will be negatively impacted by the energy transition, with the biggest impacts expected in the next decade. As a result, these industries are becoming riskier for investors. Climate change risk management is a critical issue for corporate directors, who must actively establish and monitor strategies to mitigate climate-related investment risks.
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Fossil fuel companies' revenue
The revenue of fossil fuel companies has been a topic of interest, especially with the growing awareness of the detrimental effects of their industry on the planet. The largest oil and gas companies, often referred to as "Big Oil", have been criticised for their role in driving climate change and delaying action. The term "Big Oil" typically refers to the five to seven largest publicly traded and investor-owned oil and gas companies, or "supermajors", which include ExxonMobil, Shell, TotalEnergies, BP, and Chevron. These companies have significant economic power and political influence.
In 2022, ExxonMobil and Chevron, both headquartered in the United States, reported substantial earnings, with $55.7 billion and $35.5 billion in profits, respectively. Combined with Shell, BP, and TotalEnergies, these five companies amassed nearly $200 billion in profits in 2022. This occurred during a year when the United States experienced 18 separate climate and weather-related disasters, including droughts, floods, severe storms, and wildfires.
Another notable company, Sonangol Group, reported revenues of $17.6 billion in 2017, $19.5 billion in 2018, $12.2 billion in 2019, and $5.8 billion in 2020. These revenues are a result of the conversion of their native currency to U.S. dollars. Similarly, Ultrapar reported revenues of $27.8 billion in U.S. dollars in 2022, while the Brunei National Petroleum Company's revenues have been steadily increasing, with $1.8 billion in 2017, $2.1 billion in 2018, $3.5 billion in 2019, and $3.645 billion in 2020.
The National Iranian Oil Company, on the other hand, discloses very little information about its financial performance, production, or transfers. This lack of transparency is notable, given the significant role that fossil fuel companies play in the global economy and their impact on the environment. As the world moves towards cleaner energy alternatives, it is essential to scrutinise the operations and revenues of these fossil fuel giants to ensure a responsible transition to a sustainable future.
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The Seven Sisters oil cartel
The "Seven Sisters" was a term coined by Enrico Mattei, the head of the Italian state oil company Eni, to describe a cartel of seven oil companies that dominated the global petroleum industry from the mid-1940s to the 1970s. The seven companies that made up the cartel were:
- Anglo-Persian Oil Company (now BP)
- Gulf Oil
- Standard Oil of California (SoCal) and Texaco (now Chevron)
- Royal Dutch Shell
- Standard Oil of New Jersey (Esso)
- Standard Oil Company of New York (Socony) (now ExxonMobil)
By the 1930s, the Seven Sisters dominated oil production worldwide, owning nearly all the rights to oil in Iran, Iraq, Saudi Arabia, and the Persian Gulf. They established jointly owned companies, such as the Iraq Petroleum Company, to facilitate cooperation and prevent cheating on one another. The companies sought to limit the supply of oil by controlling the development speed of oil fields and had agreements to only produce oil in the Middle East in coordination with one another.
The Seven Sisters faced two major challenges: coordinating their activities to maintain high oil prices and cooperating with the governments of territories containing oil reserves while minimizing taxes and royalties paid to those governments. They benefited from the support of the British and American governments, who pressured and coerced host governments.
The discovery of massive oil fields in Saudi Arabia threatened the cartel's control, but four of the Seven Sisters jointly controlled Saudi oil production, maintaining their coordination. By the 1970s, many countries with large reserves nationalized holdings of the major oil companies, shifting industry dominance to the OPEC cartel and state-owned companies in emerging markets.
Today, the term "Big Oil" is often used to refer to the largest publicly traded and investor-owned oil and gas companies, also known as supermajors. While the exact makeup of Big Oil is debated, companies frequently mentioned as supermajors include ExxonMobil, Shell, TotalEnergies, BP, Chevron, Eni, and ConocoPhillips.
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Frequently asked questions
The biggest fossil fuel companies are often referred to as 'Big Oil' or the 'supermajors'. The term 'Big Oil' usually refers to the 5-7 largest publicly traded and investor-owned oil and gas companies, which include ExxonMobil, Shell, TotalEnergies, BP, Chevron, Eni, and ConocoPhillips.
The term 'supermajors' was first used in a 1998 report by Douglas Terreson of Morgan Stanley, which predicted a consolidation phase that would result in a group of dominant entities. The supermajors can be traced back to the seven oil companies that formed the "Consortium for Iran" cartel, known as the "Seven Sisters". By the 1930s, they dominated global oil production and owned nearly all the rights to oil in Iran, Iraq, Saudi Arabia, and the Persian Gulf.
As of 2025, the largest oil and gas companies by market capitalization are ExxonMobil, Shell, and Chevron. In 2022, Reliance Petroleum reported revenues of $124.0 billion. Sonangol Group's revenues in 2022 were $6.2 billion.
