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These Secretive Oil Companies Control $3 Trillion In Wealth

These Secretive Oil Companies Control $3 Trillion In Wealth

Kashagan

They control the vast majority of the world’s oil and gas assets, yet the average person has never even heard of them, outside of those that are famous for things like getting attacked by missiles or becoming embroiled in a high-profile corruption scandal. 

State-owned oil and gas companies (aka, the national oil companies, or NOCs) control at least US$3 trillion in oil and gas assets, compared to around $2.5 trillion as of 2017, and hold an estimated 90% of all known reserves–considerably more than publicly listed companies such as BPExxonMobil and Shell. Meanwhile, Saudi Aramco leads the pack as the world’s most profitable company. 

That means that NOCs control about as much wealth as all U.S. billionaires or roughly twice the assets of global multilateral development banks. 

If we go by annual revenue alone, China’s state-run Sinopec—explorer, producer, refiner, marketer and distributor—was the biggest oil and gas company in the world at the end of 2018. By net income, that title goes to Saudi Aramco, which reported net income in 2018 of $111.1 billion, compared to Sinopec’s $9.1 billion. 

These numbers may seem a bit wild, but no one really ever knows where they come from or how they are derived. 

By annual revenue metrics, by year-end 2018, four of the top 10 oil and gas companies in the world were state-owned: Sinopec, Aramco, China National Petroleum Corporation (CNPC) and Russian Gazprom. The other six Top 10 titles went to Shell (4th), BP (5th), Exxon (6th), Total (7Th) Valero (8th) and Phillips 66 (10th). Related: The Best And Worst Oil Majors Of 2019

Despite their economic importance, most of these 71 NOCs are notoriously secretive–Norway’s Equinor being one of the few exceptions. For the remainder of the NOCs, their opacity poses a significant fiscal and governance risk, especially when they carry huge debts.

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Gas companies face Californian wipe-out, say S&P, Moody’s

Gas companies face Californian wipe-out, say S&P, Moody’s

Ratings agencies say the state’s bid to go 100% renewable poses a ‘significant threat’ to gas generators’ credit stability

Newport Wedge, California (Photo: Tom Walker/Flickr)

Gas companies in California face credit downgrades, ratings agencies say, after the state pledged to get all of its power from renewable sources by 2045.

On 10 September, California governor Jerry Brown signed a bill which would require 100% of the state electricity’s to come from carbon-free sources.

That would have no immediate effect on most gas generators, according to a report by Standard & Poor’s (S&P) analyst Michael Ferguson this month. However, he said: “We believe that over the long term, with the growth of renewable energy, these utilities face a significant threat to their market position, finances, and credit stability.”

Within a fortnight of the California bill, S&P had revised its ratings outlook for Middle River Power, an equity firm backing a natural gas-fired plant providing electricity for 500,000 people in San Berdinado, from stable to negative. On top of increased competition from renewables, the credit agency cited “a more challenging (…) regulatory environment for natural gas-fired assets over the long term because of aggressive renewable energy goal”.

“This gas plant is going to have to be refinanced,” Ferguson told Climate Home News, “and it’s going to get more and more difficult to refinance over the long-term because they are going to be facing increasing renewable penetration… Longer-term the prospects for [all] gas generation are going to be weaker.”

S&P’s report largely echoes an assessment by its rival Moody’s, released in September. According to Moody’s, the state’s new legislation was “credit negative” for companies Calpine Corporation, NRG Energy, Pacific Gas & Electric Company (PG&E), Southern California Edison Company, Los Angeles Department of Water and Power.

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How a Judge Scrapped Pennsylvania Families’ $4.24M Water Pollution Verdict in Gas Drilling Lawsuit

How a Judge Scrapped Pennsylvania Families’ $4.24M Water Pollution Verdict in Gas Drilling Lawsuit

For many residents of Carter Road in Dimock, Pennsylvania, it’s been nearly a decade since their lives were turned upside down by the arrival of Cabot Oil and Gas, a company whose Marcellus Shale hydraulic fracturing (“fracking”) wells were plagued by a series of spills and other problems linked to the area’s contamination of drinking water supplies.

With a new federal court ruling handed down late last Friday, a judge unwound a unanimous eight-person jury which had ordered Cabot to pay a total of $4.24 millionover the contamination of two of those families’ drinking water wells. In a 58 page ruling, Magistrate Judge Martin C. Carlson discarded the jury’s verdict in Ely v. Cabot and ordered a new trial, extending the legal battle over one of the highest-profile and longest-running fracking-related water contamination cases in the country.

In his order, Judge Carlson chastised the plaintiff’s lawyers for “repeatedly inviting the jury to engage in unwarranted speculation” and wrote that, in his personal estimation, the plaintiffs had not presented enough evidence to warrant the jury’s $4.24 million in damages. The original complaint for the case was filed in November 2009.

Nonetheless, Judge Carlson declined to throw out the lawsuit entirely, ordering Cabot to re-start settlement talks with the Ely and Hubert families. If those talks fail, the trial process will begin anew, extending the already years-long legal battle into months or even years to come.

“The judge heard the same case that the jury heard and the jury was unanimous,” Nolan Scott Ely, the lead plaintiff in the case, said in a statement. “How can he take it upon himself to set aside their verdict? It’s outrageous.”

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