Bric overtakes US in energy

The main challengers to US economic power – Brazil, Russia, India, and China – have overtaken US in dominating the global energy industry according to a global consultant’s study.

The rising power of the four countries – the new economic tigers nicknamed the Bric is already evident in the metals and mining sector and is starting to be felt in insurance and consumer-related industries.

At the end of the first Gulf War in 1991, 55% of the 20 largest companies in the energy industry by market capitalization were American and 45% were European.

But in 2007, 35% of the 20 largest energy companies are from Bric countries about 35% are European and about 30% are American the study said.

The US is now lagging with the smallest percentage number of energy companies worldwide. If you think about the global resources industry typically being a leader in terms of global trends, we’re starting to see this replicated in the mining industry where 20% of the top 20 companies are now from Bric countries. This sort of pattern will be repeated industry by industry.

Exxon Mobil is still the No. 1 energy company by market capitalization today, as it was in 1991 is followed by the likes of PetroChina Co, a unit of state-owned China National Petroleum: Gazprom the Russian gas monopoly; Petro bras Brazil’s government run oil company; China’s Sinopec; Russi’s Rosneft and Lukoil; China National Offshore Oil Corp; and India’s ONGC.

As indicated above we have major state energy companies that entered the market capitalization ranks. It’s a combination of the US energy industry falling dramatically behind the rest of the world for a number of reasons. Energy production has changed. Goldman Sachs analyzed about 170 new projects around the world, each in excess of 500 million barrels, the so called legacy assets that will drive production in the future.

Leading energy companies

Exxon Mobil US
PetroChina China
Gazprom Russia
Petrobras Brazil
Sinopec China
Rosneft& Lukoil Russia
China National China
ONCG India