Integrated Oil Companies ("IOCs")

IOCs are distinguished by their involvement in all aspects of the global energy supply chain. In industry terms, they are active both in the "upstream" (exploration and production, or E&P) and "downstream" (refining and marketing) side of the energy business. IOCs are much bigger in size and scope compared to the independents, ESPs, and traders. IOCs also have a competitive advantage in technical know-how, geographical coverage, and financial muscle.

It should be noted that IOCs are not all the same. Within this group of companies we can broadly distinguish two sub-categories of companies:

• Supermajors
• National Oil Companies (NOCs)

The distinction between these 2 categories is made based on scale, geographic diversity, ownership and financial health. Supermajors rank first in regional coverage and financial health. However, as outlined in the Benchmarks table below, they fall behind NOCs in reserves and production. Conversely, NOCs are government-owned, have operations that are often restricted to their national borders, and their obligations to the state sometimes take precedence over their financial health. As such, while they are rich in reserves and production, they rank far behind supermajors in financial categories such as revenues.