There once was a time when you could judge a company’s strength by looking at its balance sheet. A quick scan of assets, liabilities and shareholder equity would provide a pretty good sense of where that company stood in the grand scheme of things and where it would likely stay for a long time to come.
That was then. Today, amidst a global onslaught of constant regulatory change, increased supply chain risk, volatile financial markets, rigorous environmental and sustainability mandates, a 24-hour news cycle and a break-neck pace of technological innovation, identifying the global leaders in any industry requires a true 360° view of an incredibly complex business ecosystem.
All sectors of the modern business marketplace are subject to this new normal of financial, operational, regulatory and technological uncertainty, especially energy. Having weathered the historic financial crisis earlier this century when oil plummeted to below $35 a barrel, energy companies are adjusting to a persistently lower priced environment and being under the microscope of investors, regulators and politicians as they seek to manage and grow their businesses.
Compounding the issue is the fact that growth in the sector also comes with exploration and expansion in new or high risk markets and the use of sometimes controversial technology.
Energy competition has expanded from its traditional scope to include burgeoning entrants, like
LNG and renewables, as well as dormant regional players re-joining the mix.
Asserting leadership—and maintaining it—in this type of environment is a balancing act of epic proportions.
That’s why we’ve created the Thomson Reuters Top 100 Global Energy Leaders as both arecognition of the effort that goes into sustained growth, as well as a means of accurately measuring the component elements that determine leadership in such a complex environment.
Our patent-pending methodology is the first valuation metric of its kind based on a truly holistic view of modern-day business realities including the obvious financial and investor metrics, but also capturing factors such as supply chain risk, pending litigation, innovation and environmental governance.
The companies that rise to the top of this list are the Renaissance Organizations that best succeed across the parameters at the intersection of regulation and commerce.
They are the energy industry’s decathletes. They embrace the challenge of outsizing business complexity with the acumen and agility to stay one step ahead of constant change.