The Global Oil Market and the Companies That Dominate It

The oil sector remains one of the pillars of the global economy, moving trillions in investments and generating significant financial flows. To better understand this market, it is essential to know the world’s leading oil companies and their strategies.

Sector Dynamics in 2024

Recent figures reveal an interesting outlook on the global energy landscape. According to data from McKinsey & Company, global oil production reached 102.7 million barrels per day (mb/d) in 2024, representing an increase of 580,000 barrels per day. This growth was primarily driven by non-OPEC+ producers such as the United States, Canada, Brazil, and Guyana.

Demand, in turn, grew by 1.1 million barrels per day, totaling 102.3 mb/d. This more moderate pace reflects important trends: improved energy efficiency and accelerated adoption of electric vehicles.

Brent prices fluctuated significantly during the period, reaching approximately US$ 83 per barrel. This volatility is directly linked to geopolitical issues, production cuts decided by OPEC+, and disruptions at critical facilities.

Financially, the upstream oil and gas sector maintained investments around US$ 580 billion, with the industry generating over US$ 800 billion in free cash flow. This robust performance allowed companies to simultaneously fund expansion and remunerate shareholders.

Global commercial oil inventories receded to 4.4 billion barrels in March 2024, reflecting both trade disruptions and production reduction policies.

Categories and Business Models

The industry is structured into different segments, each with distinct strategic functions:

Integrated Companies: Operate across the entire value chain, from exploration to final distribution. This model offers greater resilience against price fluctuations. ExxonMobil and Chevron are classic examples of this format.

E&P Producers (E&P): Focus exclusively on exploration and extraction of oil and gas. They generally do not have refining or retail operations. ConocoPhillips and Anadarko Petroleum represent this segment.

Refiners and Distributors: Specialize in processing crude oil into derivatives such as gasoline and diesel, as well as marketing them. Valero Energy and Marathon Petroleum lead this niche.

Specialized Service Providers: Provide technical expertise in drilling, offshore infrastructure construction, and maintenance. Schlumberger and Halliburton are sector references.

The World’s Leading Oil Companies by Revenue

The largest oil companies in the world report (TTM) revenues that reflect their operational scale:

The Role of Brazilian Oil Companies

Brazil holds a prominent position in global oil production, with companies that contribute significantly to both national and international supply.

Petrobras (PETR4) functions as the largest Brazilian oil operator. As a mixed state company, it coordinates activities covering exploration, production, refining, and distribution. Its offshore extraction technology expertise positions Brazil as a reference in deep-water production.

3R Petroleum (RRRP3) operates in the E&P segment, focusing on mature fields. Through advanced secondary recovery techniques, the company maximizes production from assets already explored with lower intensity by other operators.

Prio (PRIO3), formerly known as PetroRio, consolidates as the largest private Brazilian producer. Its strategy involves acquiring producing assets and optimizing through investments in technology and operational efficiency.

Petroreconcavo (RECV3) concentrates operations in onshore fields in the Recôncavo Basin. Through acquiring mature fields and applying modern recovery techniques, it contributes to regional oil and gas supply.

Reasons to Consider Investing in the Sector

Investing in the world’s largest oil companies attracts the attention of different investor profiles for strategic reasons:

Positive Points:

• Profit distributions are frequent and substantial, offering recurring income
• Demand for oil and gas remains vigorous worldwide, ensuring continuous revenues
• Integrated companies provide exposure to multiple links in the value chain, reducing dependence on a single segment
• Operational scale offers greater capacity to absorb price variations

Challenges to Consider:

• Oil prices experience significant fluctuations influenced by geopolitics, economic conditions, and environmental pressures
• Progressive environmental regulations impose additional compliance costs
• The transition to clean energy sources may compromise profitability of fossil fuel-focused companies
• Geopolitical disruptions can interrupt critical operations

Final Perspectives

The largest oil companies in the world continue to be key players in the global economic structure. Their ability to generate dividends, strategic position in the energy supply chain, and operational diversification keep them relevant options for portfolios. However, attentive investors should constantly monitor risks related to price volatility, energy transition trends, and regulatory changes. Opportunities in the Brazilian market complement this landscape, offering regional alternatives with unique characteristics. Investment decisions should be preceded by detailed analysis and consultation with specialized advisors.