The center of gravity of the energy industry is shifting from rich countries to emerging markets such as companies from Russia, China and Brazil that are traded increasingly to occupy prominent places in an influential ranking of the world’s energy giants . This is important for stocks for dummies traders to be aware of.
The annual report by the consulting firm PFC Energy ranks the world’s largest energy traded firms. The research, published in 2010, illustrates the dramatic changes affecting the industry at a time when rising demand has driven prices upwards.
Late last year, the 50 largest of the world’s energy companies had a combined market value of $ 3.9 trillion , equivalent to the entire technology market of the Nasdaq. Exxon Mobil Corp. Topped the list with a market value of U.S. $ 369,000 million. However with soaring demand and a resultant soaring price curve in energy related products wed have to wonder will the stock market crash in 2011, as high energy prices led to the last and most recent recession.
As in many other industries such as technlolgy, the energy center of gravity is shifting to emerging markets. Of the 10 largest energy companies in the world ranking for 2010, only two were from developed economies: Russia’s OAO Gazprom and PetroChina Ltd. In the current classification, however, emerging countries contribute half of the top 10, with companies like Petroleo Brasileiro SA ahead of traditional heavyweights such as Royal Dutch Shell PLC.Many major energy producers in the world do not appear in the energy rankings because they belong to the state in its entirety.
One example is the Saudi Arabian Oil Co., better known as Saudi Aramco, which in 2010 produced 3.3 barrels of oil for every one pumped by Exxon. What has changed in recent years is that several state-controlled oil companies have been partially privatized, which has caused them to soar in value.
Paolo Scaroni, chief executive of Eni SpA, the Italian oil company and gas that is 30% owned by the government and is ranked 14 on the list of energy interest companies, said that several state-controlled energy companies chose to be evaluated by the market and to go public in 2010 and teh trend should continue in 2011.