SUPERMAJOR

The term '''supermajor''' illustrates the six largest energy companies, as seen in popular financial mediums around the world. Trading under various names around the world, they are considered to be:
^[1]

★ ExxonMobil (XOM)

★ Royal Dutch Shell (RDS)

★ BP (BP)

★ Total S.A. (TOT)

★ Chevron Corporation (CVX)

★ ConocoPhillips (COP)
The supermajors began to appear in the late 1990's as large petroleum companies began to merge, often in an effort to improve economies of scale, hedge against oil price volatility, and reduce large cash reserves through reinvestment.^[2]
Exxon and Mobil (1999), BP and Amoco (1998), Total and Petrofina (1999) and subsequently Elf Aquitaine (2000), Chevron and Texaco (2001), and Conoco Inc. and Phillips Petroleum Company (2002) all merged between 1998 and 2002. The result of this trend created some of the largest global corporations as defined by the Forbes Global 2000 ranking, and as of 2007 all within the top 25.
As of December 1, 2006, ExxonMobil ranks first in size (market capitalization), cash flow (12 months), revenue (12 months), and profits. ^{[3] [4]}

Contents

Big Oil

Controversy

See also

References

External links

Big Oil

Supermajors are sometimes collectively referred to as Big Oil, a pejorative term used to describe the individual and collective economic power of the largest oil and gasoline manufacturers, and their perceived influence on politics, particularly in the United States. Big Oil is often associated with the Energy Lobby.
Usually used to represent the industry as a whole in a pejorative or derogatory manner, "Big Oil" has come to encompass the enormous impact crude oil exerts over first-world industrial society. Additionally, "Big Oil" is also utilized to discuss the consumer relationship with oil production and petroleum use, as consumers in the United States and Europe tend to respond to petroleum price spikes by purchasing vehicles with greater fuel efficiency during these periods. Historically, consumer interest in fuel efficiency and the oil debate wanes significantly as pump prices stabilize.

Controversy

Main articles: Oil price increases of 2004-2006

In 2005, the term Big Oil has been used regularly in the media as the United States pump price for regular unleaded gasoline passed $2.00 U.S., then $3.00 U.S. in early autumn. The critical increase in fuel cost has been attributed to the effects of Hurricane Katrina and Hurricane Rita, in addition to the increasing costs of crude oil on world markets resulting from the uncertain status of supply, political instability in the Niger River Delta, and the ongoing Iraq War. The phase-out of MTBE for ethanol is another factor during 2006 - some parts of the U.S. were selling regular unleaded for $3.27/gallon - especially in West Coast states. As of May 2007, the national average is around $3.15/gallon (where oil is trading @ $66/barrel).
A current issue is whether the petroleum industry has engaged in profiteering during a time of catostrophic weather events and political unrest. The oil industry has responded by outlining their extensive costs, market uncertainties and public education efforts with regard to industry background, supply and demand, and how the system of commodity futures affects pricing. Industry supporters and many fiscal conservatives have supported the industry as an example of free market economics. Industry detractors have focused on specific profit reports and attempted to outline allegations that the oil industry has utilized unrest to achieve unjust enrichment.
The Republican Party of United States is often criticized for giving tax breaks to Big Oil [1][2][3]. By some accounts, past support of Big Oil was one reason many Republican members of the United States Congress were defeated in the 2006 election [4][5].

See also

★ Price gouging

★ Cartel

★ Fossil fuel

★ Monopoly

★ Petroleum

★ Seven Sisters (oil companies)

References

1. ConocoPhillips: The Making Of An Oil Major
2.
Slick Deal?

3. Reuters, December 2, 2006.
4. Forbes Global 2000, 2006

External links

★ Crude Awakening (''NOW'')

★ Big Oil's bigtime looting (editorial from the ''Boston Globe'')

★ Big Oil bears brunt over gas prices (''Reuters'')

★ Big Oil bosses prepare to face Congress (''CNN'')