Large Oil Company Stocks | Major Oil Company Stocks

 

 

 

 

 

 

 

 

 

Large Oil Company Stocks Are More Stable Than Small Oil Company Stocks and are Often Better Investments

 

 

                                                                                                                                                                                           

 

 

 

 

Breaking News!

 

Petrobras - the Brazilian-run international oil company - has discovered giant oil fields off the Brazilian coast!  (See Petrobras, below)  Repsol (below)and other large oil companies was also involved.  Offshore Brazil is a seabed of opportunity right now, although the giant discoveries there will be expensive to develop.

 

Also, the Bakken Shale Formation of North Dakota is red hot and production is ramping up so fast that existing pipelines are inadequate to handle all the increased oil production.  The oil formation there is two miles down and horizontal drilling and fracturing are necessary to economically produce the formation.   But the rewards are great if oil prices remain high enough to justify development..  There may be many billions of barrels of oil there!  .

 

 

  So new oil and natural gas strikes are still being made! Peak oil is not here yet!!     Oil 101 is still the law of the oil industry!!

 

 

 

                                                                                                                                                                              

 

 

 

 

 

 

 

Investments in large oil company stocks ( "major oil companies" as they are often referred to) is essential in obtaining a well- balanced oil stock portfolio.  Since many of the large oil company stocks appear to be priced now at or below fair value, when their enormous oil & gas reserves are considered, now may be a good time to buy selected major oil & gas stocks.  The large oil company stocks discussed includeShell, Exxon, British Petroleum, Total, Chevron, ConocoPhillips, Occidental, Repsol, Hess, Imperial,  Marathon, Chesapeake, Encana, EOG, Devon, Pestrobras,  Saudi Armco, Gasprom, PetroChina, Statoil, and CNOOC.

 

 

The recession of several years ago took a toll on the stock of large oil companies but to a lesser extent than the stock of small oil companies.     They are now rapidly recovering.

 

 

 

 

                                                                         

 

 

 

 

 

 

Large Oil Company Stocks

 

 

 

Royal Dutch Shell

 

 

Royal Dutch (RDS-B).  Royal Dutch owns a majority interest in Royal Dutch/Shell Group.     The Royal Dutch/Shell Group  companies, based in the Netherlands, are engaged in all the principle aspects of the oil and natural gas industry, renewable energy, chemicals, and other. Shell operates over 43,000 service stations. 

 

 

Shell stock has a market cap of $228 billion, annual revenue of over $455 billion and profits of $31 Billion. 

 

 

Shell and the Russian oil giant, Gasprom, have recently signed an agreement to continue and expand their partnership on projects both inside and outside Russia.

 

Shell stock was essentially unchanged over the past year. 

 

 

Shell's work in alternative energy - LNG, wind power, solar energy, shale oil, GTL (natural gas to liquid fuels), Alberta oil sands, etc. - is of interest. 

 

 

For more information on alternative energy sources, see alternative energy sources.

 

 

Truly a large oil company, second only to Exxon/Mobil and, possibly, British Petroleum!  Also, a very innovative company.

 

 

 

 

 

 

 

 

 

 

Exxon

 

 

Exxon/Mobil (XOM).  This large oil company is the world's most profitable company.  Engaged in the exploration and production of oil and natural gas and the manufacture of petroleum products.   Exxon stock was up about 15% from one year ago.

 

 

Market cap of Exxon is $403 billion, revenue is $414 billion and profit ois $45 billion.     

 

 

 

Exxon has a major stake in developing and exporting LNG from is Qatar.  Qatar has enormous reserves of natural gas (see Natural Gas....could the LNG prospects change with the enormous U.S. reserves of natural gas being found recently in shale formations).

 

 

Exxon has very large reserves of oil and other petroleum liquids   and natural gas. Exxon is making a major move in the natural gas area by moving to acquire XTO (acquisition value = $41 billion), one of the most aggressive natural gas companies in the industry. Also, it should have been noted that XOM has interests in 31,000 oil and/or gas wells.

 

 In an important move, Exxon has entered into a joint strategic agreement with the Russian firm, Rosneft, to search around the world for oil and gas.

Exxon is truly a largeoil company stock. Question: Will Exxon stock be worth a trillion dollars a few years from now?

 

 

 

 

 

 

 

British Petroleum

 

 

British Petroleum (BP).  British Petroleum has four main businesses:  (1) Exploration and production of oil; (2) Gas, power and renewables; (3) Refining and marketing; and (4) Petrochemicals.  BP is a large oil company with its stock worth  $137 billion, annual revenues of over $375 billion and net income of $23 billion. The stock price was up slightly during the year.

 

Detailed technical discussion of BP is not presented at this time due to the Gulf Of Mexico oil spill. The total magnitude of reparations that BP will have to make because of the spill is not known at this time but will be massive.  It almost certainly will be at least $25 - $30 billion. However, BP is a very powerful and profitable large oil company and I believe their stock will survive and prosper. As a matter of fact, I project that BP has an excellent chance to someday become the world's largest oil company.

 

 

 

Total

 

 

Total (TOT).  A large oil company, headquartered in France, with interests in oil and gas (including LNG), electricity generation, petrochemicals, oilfield services and engineering industries.  Its oil and gas activities are scattered over Africa, Europe, the North Sea, the Caspian Sea, Australia, the Gulf of Mexico, and Latin America.   Market cap $113 billion; revenue = $232 billion; Income = $11 billion.   Total was up about 10% during the past 12 months.

 

 

Total has interests in 16,000 retail stations. The company has about 100,000 employees.

 

Total's oil & natural gas reserves are estimated at over 11 billion barrels, equivalent.

 

 

Total has become adept at getting foreign countries to allow Total access to oil and gas reserves.  Total officials say that getting access is the new challenge to large international oil companies.  Oil and gas-rich countries no longer allow you to come in and pillage the country of its resources.  The countries now want something in return.

 

  Many analysts believe that Total is significantly underpriced because of the present financial uncertainty in Europe.

 

 

Chevron 

 

Chevron (CVX).   This large oil company is headquartered in California The oil company explores for crude oil and natural gas, refines crude oil, produces petrochemicals, and markets the products.  Operates in 180 countries.  Market cap $235 billion, revenues  are  $218 billion and earnings are $26 billion. Chevron stock was up about 20% over the past year 

 

 

Chevron merged with Texaco in 2001.

 

 

In 2004 - 2006, Chevron led a group in making a giant discovery ("Jack" prospect) in the deep Gulf of Mexico.  However, it will take about 10 years to get the field in full production....an indication of the difficulty in bringing even a giant oil field into production when the oil field is located in the deep Gulf!

 

 

  Chevron recently acquired Atlas Energy, Inc. for about $4.5 billionThe acquisition gives Chevron a strong position in the giant Marcellous shale natural gas field. While many energy companies are taking steps to increase oil reserves while decreasing shale natural gas reserves, Chevron is moving in the opposite direction.....apparently, they are not concerned with the present glut of shale formation natural gas.

 

 

 

ConocoPhillips

 

 

ConocoPhillips (COP).   This large oil company is located in Houston.  Primary business is exploring for and producing crude oil, natural gas and natural gas liquids, worldwide.  Conoco is the world's largest oil refiner.  Also, manufactures and markets petrochemicals.  Has an emerging businesses segment that pushes the development of new businesses beyond the company's traditional operations. 

 

 

Conoco's market cap is $75 billion, annual revenues are $60 billion, and net income is $7.3 billion  The stock was unchanged over the past year.

 

 

ConocoPhillips  became one of North America's largest natural gas producers several years ago when it purchased Burlington Industry for $38 billion.  

 

 

ConocoPhillips was making a strong effort to enter the Russian energy market and acquired 20% of the stock in the Russian oil giant, Lukoil. They are now in the process of selling off the stock.

 

Conoco's reserves are estimated at 9 billion barrels of oil equivalent.

 

 

 

Other Large Oil Company Stocks

 

 

 

Repsol

 

 

Repsol YPF (REPYY.PK).   Largest Spanish oil and gas company based in Madrid.  Engages in the exploration, development and production of oil and natural gas (also LNG). The company is strongly positioned in Argentina, Venezuela and other Latin American countries. 

 

 

Repsol was a "junior" partner to Petrobras in the giant offshore Brazilian oil strikes which have been announced over the past few years. ._Additionally, it was just reported that a Repsol rig has just gone into position off the north shore of Cuba to drill for the huge pool of oil rumored to be there.

 

 

Repsol's market cap is $35 billion, revenues were $78 billion, and income was $6 billion.    Repsol's stock price was down slightly for the past year. 

 

 

Occidental

 

Occidental Petroleum (OXY).  This large independent, international oil company explores for, develops, and  markets crude oil and natural gas in the US, Latin America, and Middle East.  Biggest development in the past few years is the news that Occidental is back in Libya in a big way since sanctions were lifted from that country.  Not only does Libya have plenty of oil but it has the good, light, low-sulfur oil that is easy to refine.  Light oil is becoming increasingly precious.  Occidental could be sitting in the catbird seat.   

 

 

Occidental's reserves include both oil and natural gas (3.2 billion barrels of oil equivalent)

 

 

Market cap $83 billion,  $23 billion revenue and $6 billion net income.   The stock was up slightly over the past year.

 

 

  Unfortunately, Libya is presently in the middle of a revolution and the final effect of all the violence on Occidental is yet unknown.

 

 

Chesapeake

 

Chesapeake Energy (CHK).   An independent natural gas company who has become one of the largest producer of natural gas in the U.S.   About 90% of the company's business is in natural gas. Chesapeake is an aggressive oil & gas company who operates thousands of oil and gas wells and drills hundreds of new wells each year.    They are heavily involved in the Haynesville shale formation of Louisiana and East Texas using horizontally-drilled wells.

 

 

Chesapeake's reserves are about 14 trillion cubic feet of natural gas equivalent.

 

 

Chesapeake's market cap is $14 billion  and revenue is about     $11 billion and profits for the past year were $1 billion. The company stock was essentially unchanged last year. 

 

 

Sliding natural gas prices over the past few years have required CHK to react aggressively to keep their profits up.    Some stocholders have complained that Chesapeake is spending too much on leasing shale gas properties.

 

 

Chesapeake Energy is an aggressively-managed company. They recently made an agreement with CNOOC (China) whereby CNOOC is contributing over $2 billion to Chesapeake's shale oil and natural gas projects in the Eagle Ford formation of Texas.

 

 

Encana

 

 

Encana Corp (ECA).  A Canadian-based natural gas company which was pretty much betting all its chips on natural gas. Encana has gotten involved in the Haynesville and the Marcellous shale formation gas plays as well as conventional gas plays. The company has recently pulled back somewhat on their natural gas plays due to the prevailing low natural gas prices.

 

 

Market cap is $15 billion, annual revenues are $7.5 billion, and net income is about $234 million.  The stock price was down about one-half during the past year.

 

  Like many U.S. and, especially, Canadian energy firms, Encana is partnering with a Chiness firm (CNPC - the parent of PetroChina) in some of their ventures.

 

 

The Canadian companies appear to be particularly popular now because they are in a safe location (removed from Gulf of Mexico with its hurricanes) and they are located near the hottest oil properties at this time - the Canadian oil sands whose recovery operations require enormous amounts of natural gas. 

 

 

In addition to providing natural gas, Encana is getting involved in mining oil sand deposits and, in at least one instance, they are working joint ventures with other oil companies.

 

 

 

EOG Resources

 

EOG Resources (EOG).  The bad boy is back!   Enron is back!  Or, at least, the independent oil company derived from Enron has arrived.  Unlike the cursing that accompanied the demise of Enron, EOG is a very well-thought-of oil company growing in leaps and bounds.  I first included them here because of their expertise in handling the Bakken Formation oil of North Dakota.  Apparently, they were technically ahead of the other companies working on the Bakken Formation. But, as time went by, I have observed that EOG's expertise is by no means limited to the Bakken shale strike. It appears that they end up near the top of every new oil or natural gas play they jump into. They are very good businessmen and there is no trace of the bad practices that brought their parent company down

 

  In addition to EOG's remarkable record in the Bakken, the company has been equally successful in the oil-rich Eagle Ford play which may be even richer oil field than the Bakken. EOG is also active in the Permian, the Barnett, the Haynesville and other oil and natural gas fields. And the story is the same everywhere: EOG wins!!

 

 

EOG has a market cap of  $32 billion, revenue of $10.7 billion, and net income of $1.2 billion.   

 

A major reason for EOG's success is their nimbleness. For examle, several years ago, they (along with many oil companies)were very heavy into the shale natural gas boom. Early on, as gas prices began to plummet, EOG got the message and moved thir emphasis to oil-rich fields, e.g. Eagle Ford, which were far more profitable than the gas fields. They beat most of the companies making the move. Yes, EOG is fast on their feet! Very fast!!

 

So EOG was basically a natural gas company instead of an oil company...despite their early expertise in handling Bakken shale oil and shale formation natural gas reserves around the country.  They still retain a heavy position (about half of assets) in natural gas.

 

 

EOG's total reserves about 11 trillion cubic feet equivalent.

 

EOG looks like a solid company and may be a prime candidate to be taken over by a major oil company.  The stock was up over 20% over the past year.. 

 

 

EOG is the type of independent oil company (like Devon, below) we need right now.  If we are going to survive the energy crisis , we need an ample supply of conventional oil and natural gas as a bridge to alternative energy development.

 

 

 Although EOG is primarily a natural gas company but because of the very low present price of natural gas, they are channeling their future plans toward developing oil reserves. To accomplish this, EOG is selling some of their national gas reserves to raise the necessary money for oil development.

 

 

Keep up the good work, EOG!

 

 

 

Devon

 

Devon  (DVN).   The largest independent oil and gas company and one about whom there are constant rumors of a take-over by one or other of the major oil companies.  Devon has large U.S. oil reserves, which are well-verified, and many prospects.  Hence, it is a desirable merger partner.  Market cap is $26 billion, revenue is  $ 10 billion and net income is $2 billion .

 

 

Stock price was down about 20% over the past year,

 

 

Devon recently participated with Chevron in the discovery of a giant new oil field (Jack prospect) in the deep Gulf of Mexico and is also involved in the prolific Barnett Shale Formation work going on around the country.

 

 

Question.  Would a takeover of independent Devon by a major oil company be desirable to the U.S. public as Peak Oil approaches?  We need someone out looking for oil and gas and Devon does a great job.  If the aggressive independents like Devon are taken over, who is going to find new oil deposits? 

 

 

Too many of the larger firms are cautious and are content to buy oil deposits, i.e., buy independents like Devon, rather than spend the money to find oil deposits.  You can't blame them since the return for exploration has been poor in recent years.  My question is, of course, strictly academic since it is still a free country and, if someone wants to sell their firm, there is nothing legal that can be done to stop them.  (For more of the same, see the discussion on China's proposed buyout of Unocal, above)

 

 

The public will likely suffer if Devon sells out.

 

 

As you can see, I like Devon but I like them as an independent.

 

 

 

 

State-Run Oil Companies

 

 

Saudi Armco

 

 

Saudi Armco. (Saudi Armco has no public stock so no stock investment is possible).   Saudi Arabian Oil Company.  The world's largest oil producer..   Owned by the Saudi Arabian government.  Saudi Armco has control of enormous reserves of crude oil and very large reserves of natural gas.  But, some experts say the Saudi oil reserves are exaggerated and that the super-giant Saudi field, Ghawar, is peaking and that further increases in oil production are unlikely. 

 

The Saudis deny that their oil reserves are exaggerated.  They say that when they nationalized the Saudi oil industry, they had to increase the stated oil reserves to realistic levels.  They claim the oil companies - when the oil companies had control -  had severely underestimated the oil reserves so that the companies could control oil prices.  According to the Saudis, the oil reserves of the country are enormous, possibly as high as 900 billion barrels.  Other oil experts question the reserve figures.

 

 

The Saudis also deny that their oil production has peaked and say they can increase oil production  when necessary.

 

 

Saudi Arabia is a large country and additional oil fields (no doubt smaller than Ghawar) will likely be found. 

 

 

 

Petrobras

 

 

Petrobras (PBR) - Official name is Petroleo Brasileiro SA.  Petrobras is the Brazilian state-run oil company.  The market cap of the company stock is $204 billion and should rise due to recent huge oil strikes off the Brazilian coast.  Revenue is $134 billion and net income is $22 billion.  

 

 

Petrobras stock was down almost 20% over  the past year.

 

 

 

In the past few years, Petrobras announced the discovery of giant oil fields offshore from Brazil's southeastern coast.  These offshore fields may contain as much as 30 billion barrels of oil and may be followed by the discovery of additional fields in the same general area. Due to physical circumstances, these oil fields will be expensive to develop but Petrobras appears ready to invest well over $200 billion in the development.

 

 

Offshore Brazil is turning into major oil territory and Petrobras is leading the way.  The company now ranks high among the oil giants.

 

 

Keep up the good work, Petrobras!  We need all the conventional oil you can find!  Development of alternative energy sources is moving too slowly!

 

 

Who says state-run oil companies can't produce?  Petrobras has made a major oil strike on its own!

 

 

 

Statoil

 

Statoil (STO).    Statoil is 70 % owned by Norway and is headquartered in Norway.  Statoil is very active on the Norwegian continental shelf.  Statoil is working with  Russia toward opening up natural gas fields for development. Statoil is also actively involved in oil and natural gas operations in 35 countries. I am impressed by some of the state-run companies, e.g. Statoil & Petrobras.

 

 

The market cap is $74 billion, revenue is $105 billion, and net income $11 billion.    &n bsp;  The stock was up about 10% over the past year.

 

 Statoil's oil/gas reserves = 5,300 million barrels oil equivalent.

 

An impressive looking oil company if state ownership doesn't bother you.  It doesn't bother me at all.  As a matter of fact, when I look at the Brazilian-run company, Petrobras,  and their giant new oil discovery offshore Brazil, and the well-run Statoil, the better I like the state-run companies.  Several of the state-run firms are running circles around some of our giant private oil companies.

 

 

 

 

CNOOC

 

China National Offshore Oil Company, Ltd. (CNOOC)   (Stock symbol CEO)  One of the three largest national oil companies in China. The company specialies in the exploration and development of oil and natural gas deposits of offshore China. CNOOC shook up the establishment a few years ago when they made an unsolicited offer of $18.5 billion  to buy Unocal Corp. (UCL).  CNOOC become quite the celebrity oil company.  Eventually, under pressure from the U.S. Congress, the proposed purchase was blocked.

 

 

 CNOOC's market cap is 91 billion, revenue is $36 billion, and net income is $11 billion.

 

The Unocal offer (and several similar efforts) shows that China is desperate to shore up its oil and gas reserves for the long haul ahead.  China is now the second leader consumer of oil in the world.  They are already a net importer of oil and gas and their demand for energy is growing rapidly. 

 

 

The Unocal offer upset some in the US Congress as China is often seen as a US rival.   But does the US really have any choice in such matters?  Through the monstrous trade imbalance between the two countries, China has been allowed to accumulate over one trillion dollars of greenbacks.  We almost gleefully allowed this to happen and now we want to say the Chinese can't spend these greenbacks buying American companies.  I don't think so!  Eventually, we will have to allow China to buy U.S. energy firms.

 

You really can't blame the Chinese for trying.  They need the oil and gas as badly as the US.  ( You are going to see many more such deals around the globe from the Chinese.  Many world oil companies are under-priced and the Chinese know bargains when they see them.)

 

Forbes (on-line) has called CNOOC a "buccaneering offshore exploration company."  CNOOC is not afraid to go anywhere and that includes Iran, Canada, and offshore Cuba. 

 

CNOOC is 70% owned by the Chinese government.

 

CNOOC stock was down about 15% during the past year.

 

PetroChina

 

PetroChina  (PTR).  The huge mainland China (headquartered in Beijing) oil and gas company.  Explores for crude oil and natural gas and transports and markets the products. The company purchases oil when necessary.   It also refines oil. 

 

 PTR's market cap is $23, revenue $299 billion, and net income is $23 billion.

 

Company reserves are 11 billions barrels of oil and 65 trillion cubic feet of natural gas.  PetroChina has 57,000 kilometers of oil and gas pipelines.

 

  The stock price was essentially unchanged over the past year.

 

The company has over 500,000 employees.

 

The company has inked a deal for clean Australian natural gas (LNG) to be imported into China.

 

 

  

 

Gazprom

 

Gazprom OAO  (OGZPF.PK).  The Russian natural gas company.   Gazprom is the largest company in Russia and has the monopoly on Russia's natural gas production.  The company is the largest company in Russia.  An idea of the huge size of the firm can be seen in the fact that about 25 % of Russia's federal tax revenues are from Gazprom    which controls about one-fourth of the world's natural gas reserves.  It should be noted that Gazprom is gearing up to export LNG overseas. 

 

 Gazprom's market cap is $173 billion, revenue is $129 billion and net profit is $35 billion (2 year old stats).

 

 

 

 

 

Large Oil Company Stocks Conclusions

 

Large oil companies are loaded with oil and gas reserves and oilfield technology.  Large oil company stocks also appear to be fair-priced.  With peak oil still approaching and with alternative energy sources not even close to being able to replace oil, now appears to be an good time to buy the large oil company stocks.

 

 

 

 

 

 

 

 

 

Websites For Large Oil Company Stocks

 

 

1. Oil Energy Company Stocks

 

 

2.  Small Oil Company Stocks 

 

 

3.  Oilfield Services Company Stocks 

 

4.   EOG Resources Oil Company

 

 

 

Last Updated:   07/13/13

 

 

 

 

 

 

Disclaimer

This web site, titled Large Oil Company Stocks | Major Oil Company Stocks and the information included herein, is intended to provide information only and should not be construed as investment advice.  The information provided is meant to broaden your knowledge and enable you to make better investment decisions within your portfolio.

 

I am not registered as an Investment Advisor nor am I a certified financial advisor. Sometimes I give an opinion on the quality of an investment.  This information is based solely on my own  investment goals and investment needs and might not reflect your goals and needs and might not be an appropriate investment for your portfolio.

 

Please consult with your financial manager/consultant/accountant before actually purchasing any of the investments discussed herein.