Shell jumps ahead of Wal-Mart, ExxonMobil as world's largest company

Mark Fightmaster

Jul 8th 2009 at 5:15PM

Text SizeAAA

Filed under: Company News, Columns, Economy

There's a new number one in town, and it's a bit of a surprise. According to the Fortune Global 500 ranking of the world's largest corporations, Royal Dutch Shell (RDS) leapfrogged over Wal-Mart Stores (WMT) and ExxonMobil (XOM) to take the top spot. Royal Dutch Shell pulled in $15 billion more in sales than ExxonMobil last year, with ExxonMobil coming in second, and Wal-Mart falling all the way to third in terms of revenue.

Royal Dutch Shell is Europe's largest oil producer and aims to stay that way (and to stay on the top of Fortune's rankings) with its $18 billion investment in a plant in Qatar that will turn natural gas into cleaner-burning diesel fuel. This facility is expected to be up and running by 2010 and the company believes it will produce enough fuel to fill more than 160,000 cars per day. ExxonMobil remained in the second spot, thanks to $443 billion in revenue and $45 billion in earnings. Wal-Mart slipped despite a solid year as the "hottest stock in the Dow Jones Industrial Average in 2008."

These rankings show the impressive year turned in by oil companies and the struggles that have hit retail. Not that Wal-Mart is struggling, or that it turned in a poor year -- quite the opposite. However, the retail sector as a whole could not keep up with Big Oil in 2008. With crude ranging anywhere from $146 to $46 per barrel, the oil companies were able to make the most of the situation. Many retailers struggled thanks to the economic downturn, with Wal-Mart ranking as one of a few retailers to do well, thanks to the low prices that the company offers its customers. Imagine how strong the two oil firms were if Wal-Mart "racked up $30 billion in additional sales -- the equivalent of adding the annual sales of a Fortune 75 company" -- and yet still fell in the rankings.

The potential problem I see for Wal-Mart is if their sales actually do drop in 2009 -- they turned in a great year in 2008 and yet fell in the rankings. If sales fall as the economic crisis deepens, the company could be in for a bit of a struggle. Of course, a continued economic struggle could mean that the aisles will remain full of shoppers at Wal-Mart. It could go either way. As for the oil companies, it will be tough to recreate the stellar year turned in by distillers and purveyors of black gold.

Reader Comments (Page 1 of 2)

7-09-2009 @ 8:34AM

Uncle Pullfinger said...

What a surprise there an oil company rakin in the big buck when other companies have to suspend contributions to employees retirement funds. The rest of the world is struggling but not shell or exxon what a joke someday things will make more sense, prob not in my lifetime

7-09-2009 @ 8:41AM

dr jon said...

Good--Shell and exxon only have a 6% profit margin so it shows what well run companies can do--lower their taxes and watch the jobs increase..of course liberal fools want to tax them into the ground---Shame on hussein oh bomb uh and the dimocraps

7-09-2009 @ 11:36AM

eros said...

Well run - bull!! They raped this country and the rest of the world and continue to do so. They need to be regulated to the hilt so they can't screw the consumer any longer. Their taxes need to be raise, not lowered. They've been on a free ride for too long. The wealthy must and will pay their fair share. Obama, who is doing a great job, will do something about these thieves. Things are finally turning around. Hallelujah!!

7-09-2009 @ 1:19PM

Jamester said...

Eros you're so wrong. Higher taxes raise the price that we have to pay for gas. The way gas works is that per dollar about 75% goes to crude oil suporters like OPEC 16% to getting the oil here and marketed--and the remaining goes to federal/state taxes. Markup is what you are thinking of that goes to service stations and they only mark up the gas by a couple cents per gallon or only go up to a about a dime. To place more regulations and taxes on service stations would only hurt us.

7-09-2009 @ 8:44AM

David said...

Is it really any surprise that the oil companies are raking in record profits while the rest of us lose our jobs, lose our homes, can't afford car repairs can't afford to pay the highest utility bills and starve to death? I pray every day for the oil industry to get what they so rightly deserve....and for the Federal Government to get what IT so rightly deserves for letting them get away with screwing us for SO long. When will Americans get fed up with these stories and start doing something about it? Never...because their self-important lives are more important than the welfare of their fellow Americans AND the Country.

9-07-2009 @ 10:47PM

Beatle said...

Very true.

7-09-2009 @ 9:01AM

sam said...

where are the jobs?

7-09-2009 @ 11:03PM

Karen said...

Good question, I would love to know the answer too.

7-09-2009 @ 12:44PM

joel said...

6% profit margin , yeah , I beleive that one when I will see former US President APOLOGIZE FOR HIS MURDEROUS MISTAKE ....

7-09-2009 @ 9:28AM

smellypete said...

You have to spend money to make money. GM and other Americans companies could learn from that.

7-09-2009 @ 9:31AM

carmon said...

What do you have to do to post a comment? praise the oil companies for the lost jobs, lost homes and skyrocket food prices. Well not from me.

7-09-2009 @ 10:14AM

Rhett said...

Shell jumps ahead of Walmart? It's for sure that Shell doesn't use Walmart's logo - "Save money - live better".

7-09-2009 @ 10:23AM

Gerry said...

I very seriously doubt that any "average" joe working for Exxon or Shell are reaping the benefits of their companies
Sale/profits.

Most of the guys and women I talk to are disgruntled because their benefits are shrinking and their health insurance costs are skyrocketing.

Forget the pension plan..most do not exist anymore.

7-09-2009 @ 10:22AM

JohnQ said...

Foreign Oil (Shell) and Foreign Goods (Walmart), no wonder The United States is in such wonderful economic shape. I will not vote for any Democrat or any Republican for any office ever again.

7-09-2009 @ 10:27AM

Louida said...

Well of course the Oil company is going to be first after their oil prices had sky rocketed!!

Lou @

7-09-2009 @ 11:04AM

karen said...

Monopoly anybody? I see all of the gas pumps upping their prices week after week, there is not shortage of gas right now and there is no reason for this to happen. time to break up these huge price fixing groups.

7-09-2009 @ 11:06AM

Susan said...

Next the price of gas will go up to where you can't afford to drive again.

7-09-2009 @ 11:12AM

Jim said...

what a bunch of crap lol Wallyworld vs Oil lmao. The last time I was a wallyworld a timebomb could have gone off and not one employee would see what was happening. Custoner service... um don't think they have it any more and I have not shopped there in over a year. They need to take that smiley face and make it a frown to match the employees faces.

7-09-2009 @ 11:53AM

brooke said...

i so agree with you! walmart...eh, is sh^t, needless to say, im not surprised with the outcome, but c'mon, walmart vs. oil... it's actually expected for OIL to be higher than a STORE! lol. such fools on here. walmart doesnt deserve to be #1 anyways, with their sh^tty employees to their prices, [[which say, roll back huh??..]] all the way to their services & employment!!! its pretty damn sad the way walmart works.. seems they only want/hire people with shitty attitudes...who wants to go there & see more agg. people, besides themselves. hey walmart emp.'s maybe you should SMILE & be happy your ugly ass got a job! ha-ha

7-09-2009 @ 11:28AM

Brady McElligott said...

Of course Shell is ahead of WalMart now. Gas prices go up a lot faster than the prices at WalMart!

| 1 | 2 | Most Recent | Next 20 Comments

Interest Rates
5/1 ARM	+4.06%APR: +3.75%
30 Yr. Fixed Mort.	+5.03%APR: +5.16%
$30K HELOC	+8.00%APR: 0.00%
30 Mo New Car Loan	+6.77%APR: 0.00%
1 Yr. CD	+1.57%APR: +1.58%