SPECIAL REPORT: Oil production slumps, but OGJ100 firms’ earnings climb

Sept. 17, 2007
Oil & Gas Journal’s survey of the 100 leading oil and gas producers based outside the US shows year-on-year earnings increases for most, while national oil companies again dominate lists of oil production and reserves leaders for 2006.

Oil & Gas Journal’s survey of the 100 leading oil and gas producers based outside the US shows year-on-year earnings increases for most, while national oil companies again dominate lists of oil production and reserves leaders for 2006.

Averaging 85.2 million b/d, global crude oil and NGL production last year climbed 800,000 b/d from 2005, according to the International Energy Agency. Output of crude only from the Organization of Petroleum Exporting Countries, however, was unchanged from 2005 at 29.7 million b/d.

The OGJ100 list allows comparison of size and performance of prominent oil and gas companies around the world. OGJ does not attempt to rank the firms by assets or revenues because many do not report financial results.

Instead of being ranked as in the OGJ200, the companies are grouped by region according to the location of their corporate headquarters.

All financial results in this report are shown in US dollars.

Annual results

Financial results are available for most of the companies profiled in four of the regions: Latin America, Europe, Asia-Pacific, and Canada. Each of these groups of companies reported collective increases in revenues, earnings, and capital spending for 2006 vs. 2005. In addition, each group posted an increase in total assets from a year earlier.

Led by Canadian Natural Resources Ltd. and Suncor Energy Inc., the group of 26 companies based in Canada recorded the best annual results on a regional basis.

Click here to enlarge image

Compared with their 2005 results, the group of companies based in Canada posted a 42% increase in earnings on 16% higher revenues. This group’s combined capital spending grew 36% last year, and its total assets at yearend 2006 were up 22%. The group’s worldwide oil production declined 1%.

The improved annual results of Petroleo Brasileiro SA and Petroleos Mexicanos boosted the Latin American oil and gas companies’ combined earnings. The group’s combined oil production was little changed from 2005. Pemex reported that its total 2006 sales were up 10%, but crude oil production decreased 2% mainly as a result of a 12% decline in production at Cantarell field. The group of companies based in Europe posted a 7% increase in 2006 earnings, and the Asia-Pacific group reported a combined 20% gain. Each of these groups saw a decline in oil production last year.

Production, reserves leaders

This year’s top 20 companies in oil production and reserves are the same as those in the previous edition of the OGJ100 (OGJ, Sept. 4, 2006, p. 36).

Saudi Aramco and National Iranian Oil Co. lead the lists of oil producers and oil reserves holders. At 17.2 billion bbl, the top 20 firms’ combined production for 2006 was down from 17.6 billion bbl a year earlier. But their combined oil reserves as of yearend 2006 were up 1.5% to total 984.6 billion bbl.

Among the reserves leaders, Russian giant OAO Rosneft moved up two places to No. 9, while Malaysia’s Petronas fell to No. 20 from No. 16 a year ago.

Click here to download a PDF of the OGJ100 table.

Click here to download a PDF of the OGJ200 Company Index.