The "7 sisters of oil" refers to the seven multinational oil companies that dominated the global petroleum industry from the mid-20th century, effectively forming a powerful cartel.
The Original "Seven Sisters"
These influential companies, first coined by Enrico Mattei, the head of Italy's state oil company Eni, were predominantly American and British-controlled entities that wielded immense power over the world's oil reserves, production, refining, and distribution. Their historical significance stems from their role in shaping global energy politics and their participation in agreements like the 1928 Red Line Agreement, which carved up oil territories in the Middle East.
Here are the seven companies recognized as the "Seven Sisters":
- Standard Oil Company of New Jersey (later Exxon)
- Standard Oil Company of New York (Socony, later Mobil, which eventually merged with Exxon)
- Standard Oil Company of California (Socal, later renamed Chevron)
- The Texas Oil Company (later renamed Texaco)
- Gulf Oil
- Royal Dutch Shell
- Anglo-Persian Oil Company (later BP – British Petroleum)
Historical Context and Influence
The power of the Seven Sisters peaked after World War II, when they controlled an overwhelming majority of the world's oil production outside the centrally planned economies. Their collective agreements and strategies often dictated global oil prices and supply, significantly impacting international relations and economic development.
- Market Dominance: These companies held concessions over vast oil fields, particularly in the Middle East, giving them control over exploration, extraction, and export.
- Vertical Integration: They were fully integrated, meaning they controlled every stage of the oil business, from upstream (exploration and production) to downstream (refining, marketing, and distribution).
- Geopolitical Impact: Their operations were deeply intertwined with the foreign policies of their home countries, especially the United States and the United Kingdom.
The Companies and Their Legacies
Many of the original Seven Sisters have undergone significant transformations, including mergers, acquisitions, and divestitures, leading to the formation of today's major energy corporations.
| Original "Seven Sister" Company | Later Names & Mergers | Modern Equivalent / Current Status |
|---|---|---|
| Standard Oil Company of New Jersey | Esso, Humble Oil, Exxon | Part of ExxonMobil |
| Standard Oil Company of New York | Socony, Mobil Oil Corporation | Part of ExxonMobil |
| Standard Oil Company of California | Socal, Chevron Corporation | Chevron Corporation |
| The Texas Oil Company | The Texas Company, Texaco | Acquired by Chevron in 2001; brand still used in some markets |
| Gulf Oil | Various mergers including Standard Oil of California, BP | Its assets were largely absorbed by Chevron and BP |
| Royal Dutch Shell | Shell | Shell plc (British-Dutch multinational) |
| Anglo-Persian Oil Company | Anglo-Iranian Oil Company, British Petroleum, BP | BP p.l.c. (British multinational) |
Standard Oil Descendants
Following the 1911 breakup of John D. Rockefeller's Standard Oil Trust, several major oil companies emerged. Three of the Seven Sisters originated from this dissolution:
- ExxonMobil: A titan formed by the 1999 merger of Exxon (Standard Oil of New Jersey) and Mobil (Standard Oil of New York), creating one of the largest energy companies globally.
- Chevron: Descended from the Standard Oil Company of California (Socal), Chevron remains a leading integrated energy company.
Independent US Majors
- Texaco: Originally The Texas Oil Company, Texaco was a prominent American oil company before its acquisition by Chevron in 2001. While the Texaco brand still exists, its corporate independence ended.
- Gulf Oil: Once a major player, Gulf Oil's assets were gradually absorbed through various mergers and acquisitions by companies like Chevron and BP, marking the end of its independent corporate identity.
European Giants
- Shell: Royal Dutch Shell, a British-Dutch multinational, maintains its status as one of the world's largest oil and gas companies, with a vast global presence in exploration, production, refining, and marketing.
- BP: Starting as the Anglo-Persian Oil Company, BP (British Petroleum) evolved into a global energy conglomerate, known for its extensive operations in oil, gas, and renewable energy.
Decline of Dominance and Rise of National Oil Companies
The dominance of the Seven Sisters began to wane in the 1970s. This shift was primarily driven by:
- The rise of OPEC (Organization of the Petroleum Exporting Countries): Formed in 1960, OPEC's member countries began to assert greater control over their natural resources, leading to nationalizations of oil assets previously held by the Seven Sisters. The 1973 oil crisis was a pivotal moment, demonstrating OPEC's collective power to set production levels and prices. Learn more about OPEC.
- Increasing competition: New oil companies, including state-owned national oil companies (NOCs) from producing countries, emerged as significant players.
Modern Energy Landscape
Today, the global oil and gas industry is far more fragmented. While the descendants of the Seven Sisters (like ExxonMobil, Chevron, Shell, and BP) remain influential "supermajors," they now share power with powerful national oil companies such as Saudi Aramco, Sinopec, CNPC, and others. The energy landscape continues to evolve, with increasing focus on renewable energy and geopolitical shifts.
