Till yesteryear global supply of energy was controlled by ‘Seven Sisters’. Since other players, particularly OPEC Plus still enjoy substantial leverage, the new name of the game is ‘Shale Oil’. To keep shale oil producers economically viable, oil price has to be kept around US$70/barrel in the global markets.
Under the strategy of cutting supplies from major producers, the first casualty was Iran, then came Iraq and Libya and now the target is Russia. To achieve the success, two pronged strategy is being followed, containing oil supply from OPEC Plus members and boosting indigenous production. To achieve the target the US administration is already in touch with exploration and production (E&P) companies which have already started soliciting ‘incentives’, the latest news is:
The oil and gas industry of United States is positioning domestic crude production as the lesser of environmental evils, as it attempts to dissuade the administration of US president Joe Biden from easing sanctions on Iran and Venezuela.
A US ban on Russian crude imports earlier this month reframed talks to restore the 2015 Iran nuclear deal and rekindled diplomatic ties between Washington and Caracas, with market participants watching keenly for any developments that might offer incremental supply.
The US oil and gas stakeholders claim a move toward Iranian or Venezuelan barrels would signal a step back from the kind of environmental, social and governance (ESG) standards consumers, politicians and investors have called for in recent years.
"If you really care about ESG, compare the United States to other jurisdictions," Hunter Hunt, Chief Executive of Dallas-based oil and gas company Hunt Consolidated, told Argus earlier this month.
"We will have a higher commitment to the environment, a higher commitment to safety, and I think you will see a stronger understanding of all social concerns here in the US than you would see in Iran or Venezuela or other countries that potentially could fill the gap left by Russian oil."
Hunt's comments echo those heard elsewhere in the industry. AFPM President Chet Thompson on March 14, 2022 called against relying on countries with "less stringent environmental and safety standards" like Iran or Venezuela for energy.
ExxonMobil Chief Executive Darren Woods earlier this month said "production will shift to somebody else with potentially higher emissions" if climate hawks push US companies into decreasing production.
Seven Sisters
The Seven Sisters (oil companies) is a classification named by the Enrico Mattei who is an Italian politician for the seven giant oil companies that managed the oil industry worldwide until the 1970s. The company names of seven sisters are: Anglo-Persian Oil Company worked between 1908-1954 after that they became BP, Gulf Oil run within these years 1901-1985 after this year purchased by Chevron, Royal Dutch Shell, Chevron, Exxon later joined with Mobil, Texaco (1901-2000) acquired by Chevron in 2001.
The traditional period starts with the Seven Sisters giant oil firms as the authoritative strength in world petroleum businesses for the decades after World War II. Royal Dutch Shell, British Petroleum, Gulf, Exxon, Mobil, Texaco, and Chevron, the cartel operated authorizations to oil in sovereign nations with plentiful petroleum sources.
This adjustment proffered the Sister’s attribute powers over oil in Venezuela and newly named OPECs countries, and end of 1950, the Sister’s cartel maintained a 98.3% exchange portion of world petroleum production. BP, Chevron, Mobil, and Shell are remaining today, and we can say that they are the big four for the oil industry of today’s world. As for why this description is accepted.
After the 1940s, these seven big companies built a cartel that provided more than 83% of world oil production and became an oligopoly for the oil industry. They are in steadfast competition with each other, but when the rise of another company comes together, they blend and threaten that company. These companies could be termed a stop at least partially with the later OPEC countries.
According to the freshest statement of the Financial Times, cartels of this century; Shell, Exxon Mobil, Chevron, BP, as well as four major oil giants, as well as Total and ENI. However, especially in recent years, non-OECD countries have included China National Petroleum Co. (CNPC), Gazprom Russia, ConocoPhillips, Petrobras Brazil, Petronas Malaysia, and Saudi Aramco.
However, the share and support of the four major oil giants among these companies, which have achieved significant progress in recent years, is not known. Some energy experts claimed that new companies’ growth occurred with the help of seven sisters.
These seven sisters, who established the international oil industry for nearly a century, developed them through incorporations, takeovers, and incorporations and brought them to the present day, have a higher income than the gross national product of many other countries, and the tonnage of the tankers they possess is higher than the naval forces of many nations.
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