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National Oil Companies

State-controlled oil companies-so-called national oil companies (NOCs)-hold about three-quarters of the world's oil reserves, with implications for everything from gasoline prices to geopolitics. In some countries where NOCs had been waning in influence as governments adopted rules to encourage investment by private firms-including the international oil companies (IOCs)-recent years have seen a resurgence in the roles for state-controlled companies. High energy prices have encouraged governments and NOC managers, alike, to concentrate authority in the hands of state firms, with a number of countries shelving plans to open their hydrocarbon sectors.

While all NOCs have in common some degree of state control over their activities, there is enormous variation in the roles these enterprises play both at home and in the world oil market. Some NOCs, including Pemex in Mexico and Saudi Aramco in Saudi Arabia, are singular in their control over their home market; others engage in various joint ventures or are exposed to competition. NOCs also differ markedly in the ways they are governed and the tightness of their relationship with government. Some states, notably Norway and Brazil, allow their NOCs relative freedom to pursue commercial goals, while others burden them with substantial non-commercial objectives in support of government goals.

Energy sources play a major role in our lives and crude oil tops the list of fossil fuels. It's definitely not possible to use crude oil for all purposes straight after it is has been extracted from the earth's surface. This raw material is converted into a finished product by Top oil companies who are responsible for supplying the crude oil in a more usable form to the end user.

Besides handling various functions such as exploring, extracting, producing and supplying oil, these oil companies offer huge employment opportunities. The role of these oil companies in the world oil market is of vital importance as they improve the global economy.