U.S. sanctions against Russia have now helped replace Exxon Mobile with Gazprom as world’s largest energy company
Perhaps one of the biggest ironies in the ongoing sanctions war against Russia is that the U.S. continues to shoot themselves in the foot the more they try to impose their economic will on Moscow.
Over the past four years both the U.S. and Europe have seen economic declines once they chose to place a ‘red line’ against Russia over Washington’s own funded Maidan coup in Ukraine.¬† And in the meantime, Russia took these sanctions and placed their own on economies in the West, which began a new shift in power towards Eurasia and the Far East.
At the middle of this economic war is of course the oil trade, and on Sept. 25 the most recent ramifications of Washington’s sanction war reared its head as Russia’s Gazprom officially surpassed Exxon Mobile as the largest energy company in the world.
Russia‚Äôs Gazprom has topped the S&P Global Platts 250 rating of the world’s energy companies. The company has ousted US oil and gas giant ExxonMobil which reigned for 12 years.
The Russian company is focused on geological exploration, production, transportation, storage, processing and sales of gas, gas condensate and oil, sales of gas as a vehicle fuel, as well as generation and marketing of heat and electric power.
Gazprom has the largest reserves of natural gas in the world and is among Russia‚Äôs top four oil producers.
ExxonMobil is now ranked only ninth. Among other big improvers, Germany‚Äôs E.ON climbed 112 places to 2nd place from 114th. India‚Äôs Reliance Industries went up to 3rd place from last year‚Äôs 8th.
The first five companies also include Korea Electric Power and Chinese CNPC. Russian oil company Lukoil is in sixth place.
The rating is formed on the basis of financial indicators of companies, including the value of assets, total revenues, net profit and others. All companies on the list have assets of more than $5.5 billion. –¬†Russia Today
Sanctions have very much played a factor in this transition of ranking and power as the U.S. has forced its major companies to halt any projects or business with Russian conglomerates, and this in particular has harmed Exxon Mobile since they had previously conducted extensive joint projects with Russian energy companies.
Economic sanctions and trade wars often are successful in the short-term, and especially against smaller economies, but in the long term they create extreme animosity which allows other exporting economies to ignore such sanctions and fill the gap lost from those lost trades.¬† And besides what Russia did to protect themselves following Western sanctions implemented in 2013, Iran and others are following the same course of action which is culminating in severe declines for America’s own businesses and corporations.
Kenneth Schortgen Jr¬†is¬†a writer for¬†The Daily Economist,¬†Secretsofthefed.com,¬†Roguemoney.net, and¬†Viral Liberty, and hosts¬†the popular¬†youtube podcast¬†on Mondays, Wednesdays and Fridays.¬†Ken can also¬†be heard Wednesday afternoons giving an weekly economic report on the¬†Angel Clark radio show.