Who is the largest oil company in the world in 2024?

The oil industry continues to be a fundamental pillar of the global economy. When asked which is the largest oil company in the world, the clear answer is: Saudi Aramco (Saudi Arabian Oil Co.). With an impressive revenue of US$ 590.3 billion and dominance over the largest oil reserves on the planet, the Saudi giant leads by a wide margin among its competitors. But the energy market is much more complex than that.

Beyond the Saudi leader, a formidable team of oil companies competes for space in the global ranking. Let’s explore who the main players are, how these mega-companies operate, and what makes investing in oil interesting for different types of investors.

The sector landscape in 2024: numbers that impress

The global oil industry remains an economic driving force despite contemporary challenges. The 2024 data reveal a complex scenario:

Global demand is expected to grow by 1.1 million barrels per day, totaling around 102.3 mb/d. This slower pace reflects increasing energy efficiency and the expansion of electric vehicles. Simultaneously, global production is projected at 102.7 mb/d — a record mainly driven by producers outside OPEC+, such as the United States, Canada, Brazil, and Guyana.

Brent prices fluctuated around US$83 per barrel, influenced by geopolitical tensions and strategic production decisions. Global commercial stocks fell to 4.4 billion barrels in March, reflecting tight supply and demand dynamics.

In terms of investment, the upstream sector remains robust with approximately US$ 580 billion allocated, generating free cash flow exceeding US$ 800 billion — a financial fuel to fund both expansions and shareholder remuneration.

The 10 giants dominating the oil market

Here is the ranking of the largest oil companies in the world by revenue:

Saudi Aramco’s dominance as the largest oil company in the world reflects not only its operational scale but also its privileged access to colossal oil reserves. Chinese oil companies — Sinopec and PetroChina — hold the second and third positions, demonstrating how Asian energy demand shapes the global market.

In the United States, companies like Exxon Mobil, Chevron, Marathon Petroleum, and Valero Energy form an important bloc. Shell and BP, British companies, remain among the global powerhouses. TotalEnergies, French, stands out by combining traditional operations with increasing investments in renewable energies.

Business models: how oil companies operate

The sector is not monolithic. Different companies operate under distinct structures:

Integrated Companies: Control the entire chain — exploration, production, refining, and distribution. Saudi Aramco, Exxon Mobil, Shell, and Chevron exemplify this model. The advantage? Risk reduction through operational diversification and protection against price fluctuations in a single segment.

Exploration and Production (E&P): Focus exclusively on discovery and extraction. ConocoPhillips and Anadarko Petroleum specialize in this niche. They are more specialized companies but also more exposed to price volatility.

Refining and Distribution: Marathon Petroleum and Valero Energy process crude oil into gasoline, diesel, and other derivatives. They serve as the intermediate link between production and the end consumer.

Oilfield Services: Schlumberger and Halliburton provide technical support — drilling, platform construction, maintenance. They profit from the infrastructure needed for producers to operate.

Why invest in oil companies? Pros and cons

The positives:

Consistent dividends attract investors seeking passive income. Many of these companies regularly distribute profits to shareholders. Global demand for oil remains robust — even with the energy transition underway, hydrocarbons continue to be essential for transportation, plastics, and petrochemicals.

Integrated companies offer diversified exposure. A decline in prices can be offset by better margins in refining. The financial stability of giants reduces insolvency risks compared to smaller producers.

The risks:

Price volatility is an inescapable reality. Geopolitical conflicts, OPEC+ decisions, economic recessions — all impact quotations. Companies focused solely on E&P suffer more from these fluctuations.

Environmental regulatory pressure is intensifying. Advanced governments impose emission limits. The industry must invest billions in carbon capture, waste treatment, and environmental compliance. This compresses margins.

The transition to renewable energies is a real trend. Solar, wind, and batteries are gaining ground. Although oil demand will not disappear in the coming years, long-term growth becomes questionable for companies that do not diversify.

The Brazilian oil market

Brazil holds a relevant position in global production. Its companies offer particular opportunities:

Petrobras (PETR4): The largest Brazilian producer, a mixed state-owned company operating across the entire chain — exploration, production, refining, and distribution. It is a reference in deep-water exploration technology. Its investments in pre-salt have transformed Brazil’s energy dynamics. It offers attractive dividends and exposure concentrated on domestic demand and exports.

3R Petroleum (RRRP3): Specializes in mature fields. Acquires assets that other companies underutilize and optimizes production with advanced techniques. A leaner model with lower operational costs. Result: an interesting margin for investors seeking alternatives to Petrobras.

Prio (PRIO3): The largest private Brazilian oil company, formerly known as PetroRio. Focuses on exploration and production, with a portfolio of established fields. It revitalizes assets, increasing productivity. Its intermediate position between giants and very small companies makes it attractive for diversification.

Petroreconcavo (RECV3): Operates onshore fields in the Recôncavo Basin, Bahia. Similar model to 3R — buys mature fields and increases production through technology and efficient operation. Regional presence consolidated, attractive dividends for patient investors.

Is it worth investing now?

Answer: it depends on your profile.

If you seek passive income and can tolerate volatility, dividends from integrated oil companies are attractive. If you are a conservative investor, this asset class presents significant risks.

The macroeconomic outlook favors oil companies for now — energy demand remains strong, prices have regained momentum, operational margins have improved. But what about scenarios 5-10 years ahead? Greater uncertainty. The energy transition is real and irreversible.

A balanced strategy: combine exposure to traditional oil companies with firms investing in renewables. Shell and TotalEnergies are already doing this. In Brazil, Petrobras also positions itself in this direction.

The oil sector will not disappear tomorrow. What is the largest oil company in the world? Saudi Aramco will continue to dominate as long as its reserves last. But the future requires adaptation. Attentive investors find opportunities both in established giants and emerging players reinventing themselves.