I have been observing the oil sector and there are some interesting things happening there. The industry remains a huge force in the global economy, even with all the pressure for energy transition. It's worth taking a look at what's going on with the biggest oil companies in the world.

In 2024, global oil demand was around 102.3 million barrels per day, with production reaching 102.7 million. The numbers show a more moderate growth than in previous years, mainly due to electric vehicles and energy efficiency. Brent prices have been volatile, fluctuating quite a bit because of geopolitical issues.

Now, the biggest oil companies in the world are divided into different types of operations. There are integrated companies that do everything — exploration, production, refining, and distribution. Then there are E&P-focused companies that only focus on discovering and extracting. And there are refining, distribution, and technical service companies. Each plays its own game.

The largest oil company in the world is Saudi Aramco, from Saudi Arabia, with revenue of about 590 billion dollars. They dominate in production and reserves. Next come Sinopec and PetroChina, both Chinese, each earning 486 billion. Exxon Mobil from the US ranks fourth with 386 billion, followed by Shell from the UK with 365 billion.

Then there’s TotalEnergies in France with 254 billion, Chevron in the US with 227 billion, BP in the UK with 222 billion, Marathon Petroleum with 173 billion, and Valero Energy closing the top 10 with 170 billion. These biggest oil companies in the world have operations spread across various countries and generate huge cash flows.

Here in Brazil, Petrobras is the largest in the country and one of the most important globally. They do everything, from exploration to distribution, and excel in offshore technology. Then there’s 3R Petroleum focusing on mature fields, Prio as the largest private Brazilian company, and Petroreconcavo working on onshore fields.

Investing in these companies has its good and bad sides. The positive side is that they pay consistent dividends, energy demand remains high, and integrated companies offer diversification. But there are risks: oil prices are volatile, environmental pressure is increasing, and the transition to renewables could weigh in the long term.

Overall, the biggest oil companies in the world continue to be important pieces on the global economic board. But before investing money, it’s good to be aware of geopolitical and environmental risks, as well as changes in the energy market. Each investor needs to consider whether it makes sense for their profile and goals.