May 24, 2022
The oil and gas sector refers to companies in the energy industry focused on drilling, production, refining and distribution of hydrocarbons.
Market cap is an indicator of how the stock market values a company. It’s calculated based on the total number of shares multiplied by its stock price. If a company has 10 million available shares priced at $100 each, the market cap would be $1 billion. Therefore, when building an investment strategy, the market cap plays a significant role as it helps investors understand how much the market is willing to pay for its stocks and how one company compares to another.
Understanding a company’s market cap in the oil and gas sector is relevant as this correlates to the prices of oil and gas. This could be an advantage as understanding commodity prices is not always easy, since commodity trading often involves future contracts based on the price of a physical asset.
These are the top 10 companies with the largest market cap.