Continuing with series on Ross Garnaut's prophesy and his demands that Australia go for zero emissions by 2025 (or sooner). See first:
Economist Ross Garnaut failed to account for Australia's massive, proven capacity as a global climate sink, and the probability of catastrophic bushfires that can arise from mismanaging that asset: Government cannot ignore basic carbon accounting if it wants to combat climate change
Natural Resource Governance Institute states:
National oil companies (NOCs) produce approximately 55 percent of the world’s oil and gas, pumping out an estimated 85 million barrels of oil equivalent per day. The World Bank has estimated that they control up to 90 percent of global oil and gas reserves, thereby serving as gatekeepers for international oil companies’ access to hydrocarbons.
The statement is not hard to understand given that most of the Top 10 oil producers in the world are national oil companies.
1) Saudi Aramco – 10,963,091bbl/day
The Saudi Arabian Oil Company, better known as Saudi Aramco, is the world leader in oil production with a production rate of over 10 million barrels of oil per day (mbbl/day).
The company has the world’s second-largest proven crude oil reserves with 261.5 billion barrels of oil equivalent (BBOe), which accounts for about 10% of the world’s crude oil supply.
Saudi Aramco is also one of the largest and most profitable companies in the world, with a net income of $111.1bn in 2018.
2) Rosneft – 42,17,780bbl/day
Russian integrated energy company Rosneft is the second-largest producer of oil in the world, as well as the world’s largest publicly-traded petroleum company, with a production rate of over 4.2mbbl/day.
The company’s proven hydrocarbon resources are around 41BBOe, with a number of exploration operations increasing Rosneft’s resources in recent years.
Rosneft is the third-largest company in Russia, and accounts for over 40% of Russia’s crude and condensate production. These production levels are expected to continue through to 2021, bolstered by a number of discoveries and projects launched in 2018.
3) KPC – 3,412,203bbl/day
The state-owned Kuwait Petroleum Company (KPC) is the third-largest producer of oil in the world, with a production rate of over 3.4mbbl/day.
The company produces approximately 7% of the world’s total crude oil, with proven reserves of about 111BBOe.
At the end of 2018, KPC announced an investment plan worth approximately $115bn, as part of its intention to increase oil production to 4mbbl/day by 2020.
4) NIOC – 3,256,486bbl/day
The National Iranian Oil Company (NIOC) is an important company in the oil and gas market despite US-imposed sanctions on Iran, with a production rate of over 3.2mbbl/day.
While the sanctions placed on Iran due to the country’s nuclear programme have deterred overseas investments in Iranian oil and gas, the NIOC continues to invest in exploration projects to utilise the 200 undeveloped oil and gas fields in the country.
5) CNPC – 2,981,246bbl/day
The state-owned China National Petroleum Company (CNPC) is the largest producer of oil in East Asia, with a production rate of just under 3mbbl/day.
CNPC is also one of the largest oil and gas companies by revenue, with revenues of $326bn The company ranked #4 in Forbes’ Global Fortune 500 from 2017-2019.
The company’s international diversification in recent years has contributed to its influence in the global energy market, even with the ongoing trade dispute between China and the US.
6) ExxonMobil – 2,294,701bbl/day
As a member of “Big Oil,” American energy company ExxonMobil is one of the world’s most influential companies and the largest producer by oil in the US, with a production rate of 2.3mbbl/day.
ExxonMobil is also one the world’s largest companies by revenue, with revenues of $244.3bn.
The company has recently expanded its global portfolio through a number of overseas exploration and production projects, in addition to increased production in the US.
7) Petrobras – 1,987,950bbl/day
Brazilian multinational Petroleo Brasiliero, better known as Petrobras, is the largest producer of oil in South America with a production rate of just under 2mbbl/day.
Petrobras is one of the most influential companies in the oil and gas industry, ranking at #73 in the 2018 Global Fortune 500.
While the company has struggled with corruption scandals and debt woes in recent years, Petrobras has shown signs of recovery and is involved in a number of planned exploration and production projects.
8) ADNOC – 1,973,135bbl/day
With a production rate of just under 2mbbl/day, the UAE’s state-owned Abu Dhabi National Oil Company (ADNOC) is a significant player in the Organization of the Petroleum Exporting Countries (OPEC).
The company works with overseas contractors and multinationals to expand the UAE’s offshore industry. Recently, this includes initiating exploration bidding rounds for blocks in the UAE and awarding a number of contracts to develop offshore oil and gas in the country.
9) Chevron – 1,830,537bbl/day
American multinational Chevron was one of the “Seven Sisters” that dominated the global oil and gas industry from 1940-1970 and continues to be an influential company in modern markets, with a production rate of 1.8mbbl/day.
In April 2019 Chevron signed a deal to acquire hydrocarbon exploration company Anadarko for $50bn, but this merger deal is likely to be terminated following Occidental Petroleum’s acquisition of Anadarko in May 2019.
10) Pemex – 1,813,360bbl/day
State-owned petroleum company Petroleo Mexicanos, better known as Pemex, is one of the largest companies in Latin America with a production rate of 1.8mbbl/day.
Although Pemex has had problems with debt in recent years, the company has invested in a number of operations over 2018 to mitigate its financial woes and boost its crude output.
Note that Exxon and Chevron rely heavily on good relations with national oil companies in order to access reserves outside the United States.These remain a significant part of their production.
The extent of state involvement and control gets clearer once the the ownership and business of the Top 250 Energy companies as ranked by Platts is analysed.
How a zero emissions policy, indeed any level of "de-carbonisation" of the Australian economy is going to influence of or affect the output of any of the above is hard to understand, unless of course one lives in one of Garnaut's economic models.
The degree of irrelevance is more stark when one considers that Australian policies are not likely to matter to NOCs in the neighbourhood: