Three of the top 10 companies in the latest Platts Global Energy Company rankings are in China, reflecting how the mainland has become a major participant in the global energy sector, according to observers.

Oil industry data and publishing firm Platts - a unit of McGraw Hill Financial Inc -announced on Tuesday its annual list of the top 250 global energy companies and CNOOC Ltd (China National Offshore Oil Corporation), PetroChina Co Ltd, and China Shenhua Energy Co Ltd made the top 10, ranked fourth, fifth and ninth, respectively. China Petroleum and Chemical Corp was ranked 11 th.

Sharon Burke, a senior adviser for the Washington-based think tank New America and a former assistant-secretary of Defense for operational energy in the Obama administration, said the top rankings signify that in addition to being a large consumer of energy, China is now a large producer as well.

"This is not new - China has long been one of the world's top domestic producers of oil. What is new, however, is China's growing role as a competent global player in all phases of energy production (exploration, production, transportation, and refining). This means there's a powerful new competitor in the market, but it's also one that industry insiders claim doesn't always play on a level field," Burke wrote in an e-mail to China Daily.

China has long been a significant producer of raw materials. For example, it produces about half the world's coal supply and is one of the top five producers of crude oil. "But in recent years (China) has become an increasing net importer of energy, which is why the spotlight has been on its growing appetite for imported oil and natural gas," said Yen Ling Song, Platts China oil analytics senior analyst.

China's major energy companies are typically State-owned enterprises (SOEs) so they have mandates to secure energy supplies for the country said Song. "This means sectors such as oil are dominated by SOEs, which gives them significant control and potentially huge profits when commodity prices are high. That, coupled with government-to-government deals struck by Beijing can give them significant advantages in expanding abroad as well," she added.

Song said a focal point of the government in the next five years will be to institute SOE reform to make the energy SOEs more market oriented, competitive and efficient.

As China's economy has grown into the world's second-largest behind the US, the country's energy appetite has expanded so much that the country has had to secure supplies from all over the world.

"Chinese companies are definitely seeking opportunities overseas, and there's basically no region where they aren't a player, including North America. The most significant region, in terms of geopolitics, is the Middle East," wrote Burke of New America.

Chinese companies have been attempting to take advantage of new technologies. "The State-owned oil companies have increasingly been investing in natural-gas projects as well as unconventional assets such as shale gas and coal-bed methane," said Song.

As China's economy transitions to a more consumption-based model, the energy industry will also rebalance said Song.

"Consumption of natural gas, gasoline and jet fuel are likely to continue strong growth, although demand for other commodities such as iron ore, cement and coking coal might be on the decline as the government attempts to shift future growth away from investment toward consumption," she said.

"China's economic slowdown will definitely affect the global energy industry, both by depressing global demand for energy and slowing expected investment in the global energy sector," added Burke.

Exxon Mobil Corp of the US held on to the top spot in the Platts rankings for the 11th consecutive year. Chevron Corp of the US was second while Royal Dutch Shell PLC of the Netherlands was third. Chinese companies secured the first four of the top-five energy companies ranked in Asia. Reliance Industries Ltd of India was fifth.

paulwelitzkin@chinadailyusa.com