Crude oil is one of the most sought-after and important raw materials in the world. The business with such valuable crude oil is largely shared by only a few important oil companies. Although the actual production volume has been falling for some time, the large corporations are still making huge profits. These result mainly from price adjustments.
There are various ways for investors to participate in the profits of oil production companies. Those interested in investing in oil should be well informed about the exact market situation and keep a close eye on the business situation of the major oil giants as well as news about oil production.
Which countries produce the most oil
The main producing countries are, of course, the OPEC countries. The ranking with regard to the respective production volumes in the individual states is clearly structured. Saudi Arabia is the OPEC country where the largest amount of crude oil is produced. Iraq is in second place by some margin, followed by Kuwait, the Arab Emirates, Iran and Venezuela.
A total of 13 countries currently belong to the largest oil cartel. The remaining OPEC countries supply only comparatively small quantities of oil compared to the first ranks.
In addition to oil from the OPEC countries, Germany also purchases oil from the USA, Russia and Great Britain.
How investors can participate in the profits of oil companies
There are several ways in which investors can participate in the profits of major oil companies. The simplest and also best known way is shares. When buying shares, the rule is: the broader the oil company is positioned on the market, the lower the risk for investors.
Risk can also be reduced by funds such as the iShares S&P Commodity Producers Oil & Gas, the Amundi MSCI World Energy or the iShares Stoxx Europe 600 Oil & Gas.
Investors can invest directly in crude oil through certificates. So about the choice of investment can decide for themselves the level of risk.
The most important and largest oil companies in the world
Of course, the ranking of the most important and largest oil companies in terms of market capitalization can change slightly in any given year. For years, the U.S. oil companies Exxon Mobile and Chevron, the Dutch company Royal Dutch Shell, and the French oil company Total have always been among the leaders,
the British oil company BP, Petrobas from Brazil, Equinor as the largest oil company in the Nordic countries, the Indian company Reliance Industries, and the Chinese oil companies Sinopec and Petro China.
All of these groups focus not only on the exploration and production of crude oil, but are quite broadly positioned in the market. These include, for example, the operation of service stations or the manufacture of chemical products.