Public Oil Companies

The Creation of the Oil Company
The modern oil business took off with the 1859 discovery of oil in Pennsylvania. By 1870, American tycoon John D. Rockefeller established the Standard Oil Company and in just seven years Standard Oil controlled 10% of the entire U.S. oil industry. In order to cut competition, Standard Oil would slash prices, relying on cash reserves, until it drove competitors out of business. Rockefeller’s company was subsequently deemed a monopoly in 1911 and was split into 34 different companies. Despite these divisions, Standard Oil remained a powerful force in the oil business. Exxon, Chevron, Mobil and Conoco companies resulted from the partitioning of Standard Oil.

After World War II, the dominant oil companies that controlled the Middle East’s oil —- the “Seven Sisters” —- were: Exxon, Mobil, Chevron, Gulf, BP, Royal Dutch Shell, Texaco.

Today, though much power has been ceded to national oil companies, the largest private oil companies are still:

ExxonMobil -- Since its merger, ExxonMobil has become the largest corporation in the world. In 2000, the company was worth more money in revenue than any other business in the United States. To view more about mergers and goings on, visit our Recent Trends section.

BP -- BP is the largest oil company in the world. At its founding, BP was called Anglo-Persian Oil and operated primarily in Iran until political tensions beginning in the 1950s led BP to diversify its sources. Since the 1970s, BP has set up operations in the Alaskan North Slope.

Biggest Public Companies
According to a 2005 Oil Industry Profit Review put together for Congress, the five major private integrated oil companies (Oil companies that work in exploration and production as well as refining and marketing) received 80% of the oil industry’s 2005 total revenue and 76% of total 2005 profits.

2005 Financial Performance of Integrated Oil Companies (in millions of dollars)
COMPANY NAME 2005 REVENUES 2005 NET INCOME 2006 NET INCOME
ExxonMobil 370,998 36,130 39,500
Royal Dutch Shell 306,731 22,490 25,400
BP 253,621 19,314 22,000
Chevron 198,200 14,099 17,100
ConocoPhillips 183,364 13,529 15,500
Marathon 63,673 3,022
Amerada Hess 22,747 1,242
Occidental 15,208 5,281
Murphy 11,877 846


According to a CNN Money report, Exxon Mobil’s 2005 net income of $36.1 billion equals $1,146 a second. That per second profit would have been enough to pay for the average American vehicle to be driven 10,294 miles. To view a list of National Oil Companies (NOCs), click here.