[Petroleum Matters] The 'Big Three Oil Companies': Symbols of Monopoly or Pillars of National Strength?

The overcapacity problem brought about by the prosperity of privately owned refineries precisely proves that these private enterprises are not as efficient as some economists and financial media claim. If China’s petroleum industry shifts toward a ‘vertically fragmented’ structure, overall industrial efficiency will decline. In discussions on reform, some media outlets have even openly declared that another rationale for breaking up state-owned oil companies is to ‘cede profits’ to private capital. This, in fact, confirms private capital’s longstanding demand: to be handed the most profitable segments of the business—while showing no intention of building or maintaining the foundational infrastructure required to make those segments profitable. State-owned oil companies have already adopted market-oriented operations. Their assets stem from historical circumstances—since China’s industrialization was achieved under the leadership of the Communist Party of China, private capital must accept this historical reality, as history does not repeat itself. Should competition truly be fully liberalized, it would take only five years to determine whether private enterprises or the ‘Big Three Oil Companies’ are more efficient. 06 An Overlooked World-Historical Turning Point From the perspective of the petroleum industry, the rise of China’s three major oil companies has transformed the global petroleum industry’s structure. A glance at the rankings of the world’s largest oil companies on the Fortune Global 500 list over the years readily reveals this fact. In the 1999 Fortune Global 500 list, six Chinese enterprises appeared for the first time. Sinopec ranked highest among them at No. 73; CNPC ranked No. 485. Four Western oil companies ranked ahead of Sinopec: Exxon (No. 8), Royal Dutch Shell (No. 11), BP Amoco (No. 19), and Mobil (No. 40); another long-established oil company, Texaco, ranked No. 81. A brief explanation of the later mergers and reorganizations of the ‘Seven Sisters’ is warranted: Exxon originated from Standard Oil of New Jersey and later merged with Mobil to form today’s ExxonMobil; Royal Dutch Shell resulted from the merger of Royal Dutch Petroleum and Shell Transport and Trading Company; Chevron evolved from Standard Oil of California and later merged with Texaco to become today’s Chevron; and BP merged with Amoco to form today’s BP. Although Western oil giants grew larger through consolidation, China’s oil companies—restructured and adopting vertically integrated models—continued growing at an even faster pace. In the 2005 Fortune Global 500 list, BP ranked No. 2, ExxonMobil No. 3, Royal Dutch Shell No. 4, France’s Total No. 10, Chevron No. 11, and ConocoPhillips No. 12. Meanwhile, Sinopec rose to No. 31, and CNPC to No. 46. CNOOC entered the Global 500 for the first time in 2007, ranking No. 469. In the 2010 Fortune Global 500 list, Royal Dutch Shell ranked No. 2, ExxonMobil No. 3, and BP No. 4—yet Sinopec climbed to No. 7, CNPC to No. 10, both surpassing Chevron (No. 11) and other Western oil companies, while CNOOC rose to No. 252.

[Crude Oil Research Report] Mixed Market News: WTI Weekly Average Price Unchanged

On the other hand, investors are also closely watching a new round of Ukraine-related talks. During the week, Ukrainian President Volodymyr Zelenskyy visited Turkey in hopes of reviving the stalled Russia-Ukraine peace negotiations. According to two sources, the United States has signaled to President Zelenskyy that he must accept a U.S.-drafted ceasefire framework, which proposes that Kyiv relinquish certain territories and weapons. Meanwhile, Russia stated it would not send representatives to the Ukraine talks in Turkey, though President Vladimir Putin remains open to dialogue with both the United States and Turkey. Beyond geopolitical developments, growing concerns over crude oil oversupply have weighed on oil prices. OPEC stated that, due to unexpectedly strong growth in U.S. crude output and other factors, the global market has shifted from a daily supply deficit of 400,000 barrels to a daily surplus of 500,000 barrels—entering a phase of structural oversupply. The U.S. Energy Information Administration (EIA) likewise forecasts oversupply: EIA data projects global crude and liquid fuels supply in 2025 at 106 million barrels per day, versus projected global demand of 104.1 million barrels per day. This Week’s Crude Oil Spot Market Review This week, international crude oil spot prices declined week-on-week. In the Middle East crude market, Kuwait Petroleum Corporation tendered crude cargoes for sale. Crude demand fell due to unplanned maintenance at the Al-Zour refinery following a fire. According to Syria’s state news agency, a tanker carrying 90,000 metric tons of Saudi crude oil arrived at Syria’s Baniyas port—the first of several shipments provided by Saudi Arabia to meet local needs. Quoting the head of the Syrian Petroleum Company, the agency reported that Baniyas port received 650,000 barrels of crude oil on November 17—the first batch supplied by Saudi Arabia—with a second batch of 1 million barrels scheduled for delivery on November 23. In September, the Saudi Development Fund announced it would provide Syria with 1.65 million barrels of crude oil. Since the ousting of former President Bashar al-Assad, Saudi Arabia and other Middle Eastern countries have been restoring relations with Syria and increasing financial aid to support its reconstruction. Gulf Keystone Petroleum reported that international oil companies operating in Iraq’s semi-autonomous Kurdistan Region have loaded their first export crude cargo from the Turkish port of Ceyhan. In a statement, Gulf Keystone Petroleum said partial payment for the first cargo is expected within 30 days, and the second cargo is scheduled for loading by the end of November. In the Asia-Pacific crude spot market, Indian Oil Corporation purchased 4 million barrels of West African crude via tender, with delivery scheduled between January 1 and early February 2026. The company acquired cargoes of Nigerian Akko and Usan crudes, as well as Angolan Nemba and Hungo crudes—1 million barrels each. Petronas adjusted the pricing differential for its December crude basket downward from $7.55 per barrel in November to $6.85 per barrel. Specifically, the Tapis crude differential widened from -$3.70 per barrel in November to -$3.81 per barrel; the Bintulu crude differential widened from -$2.49 per barrel to -$2.59 per barrel; and the Dulang and Cendor crude differentials stood at +$0.78 per barrel and +$1.82 per barrel, respectively.

Kurdistan-focused oil firms Gulf Keystone, ShaMaran agree $601 million merger

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UK-listed Gulf Keystone Petroleum will merge with Norway's ShaMaran Petroleum in a $601 million deal, creating a major oil producer in Iraq's Kurdistan region amid rising regional oil prices.

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Kurdistan-focused oil firms Gulf Keystone, ShaMaran agree $601 million merger

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