Price wars between oil producing states, conflicts among a few countries, and COVID-19 disruptions have all had a major influence on the world oil market in recent years.
But last year, concerns of a recession and slower economic growth driven by higher interest rates put downward pressure on oil prices again. Considering these events, it is interesting to know who are the top 10 oil producing nations.
Overview of global oil production
The global oil production landscape is complex and dynamic, influenced by many factors, including geopolitical events, technological advancements, and market demand. Dominated by a few key players, the world’s oil production is led by the United States, Saudi Arabia and Russia. These countries are at the forefront of crude oil production, significantly shaping the global oil market. The interplay between these oil-producing countries determines the supply and pricing of crude oil, impacting economies worldwide.
Importance of crude oil production
Crude oil production is a cornerstone of the global energy mix, accounting for approximately 33 percent of the world’s total energy consumption. This vital resource is refined into various petroleum products such as gasoline, diesel, and jet fuel, essential for transportation and industry. The global oil market heavily relies on crude oil production to meet the ever-growing energy demands. According to the Energy Information Administration (EIA), the world’s total oil production is projected to average 103 million barrels per day in 2024, underscoring the critical role of crude oil in sustaining global energy needs.
Global energy mix: Oil, natural gas, and beyond
The global energy mix is transforming, with renewable energy sources gaining prominence. However, oil and natural gas dominate, accounting for approximately 57 percent of the world’s total energy consumption. The EIA forecasts that natural gas will surpass oil as the largest energy source by 2025. As the world transitions towards a lower-carbon economy, oil and natural gas roles are expected to evolve, balancing the need for energy security with environmental sustainability.
Top oil producing countries
According to the Energy Information Administration (EIA), the list of top oil-producing nations is based on the total production of petroleum and other liquids.
Many of these top oil-producing nations are also key petroleum exporting countries, significantly influencing global oil supply and pricing through their membership in OPEC.
United States (Production: 21.91 million bpd)
With an output of 21.91 million barrels per day in 2023, the United States remained the world’s biggest oil producing nation for the sixth consecutive year. The United States has been referred to as a swing producer due to its output, which includes crude oil, changing in line with market pricing. With production almost four times higher than that of New Mexico, the second-largest oil-producing state in the U.S., Texas leads the group. The U.S. not only produces the largest quantity of oil, but it also consumes a significant amount of it. On average, the country used 20.5 million barrels of petroleum products daily in 2023.
Saudi Arabia (Production: 11.13 million bpd)
In 2023, Saudi Arabia produced 11.13 million barrels of oil per day, contributing significantly to the world’s oil production. With 17 percent of the world’s known petroleum reserves, the nation leads the world in petroleum exports. Approximately 50 percent of its GDP and 85 percent of its export revenue come from the oil and gas industry.
Russia (Production: 10.75 million bpd)
Russian oil output had been increasing for several years before production cutbacks in 2020. The Russian oil industry has faced numerous challenges, including geopolitical tensions and economic sanctions, impacting its production capabilities. In 2023, it reached 10.75 million barrels per day. Most of Russia’s reserves are found in the Urals-Volga area, which stretches into the Caspian Sea, and in West Siberia, which is between the Ural Mountains and the Central Siberian Plateau.
Canada (Production: 5.76 million bpd)
Canada is next on the list of the top 10 oil-producing countries. In addition to crude oil, Canada also produces significant quantities of natural gas liquids, which contribute to its overall petroleum output. The nation’s annual oil production increased by about 10,000 bpd from the previous year to 5.76 million bpd in 2023. Alberta is home to almost all of Canada’s proven oil reserves, with the majority of those reserves — 97 percent —being found in the province’s oil sands, according to the government of that region. Canada exports energy to the USA in large quantities. As a matter of fact, in 2023, 60 percent of U.S. imports of petroleum came from Canada, up from 33 percent in 2013.
China (Production: 5.26 million bpd)
In 2023, China produced 5.26 million barrels of oil per year. In 2014, the country became the greatest net oil importer after rising from its position as the second-largest consumer worldwide. China’s economy is expanding quickly, which has increased the country’s overall energy consumption. The Asian nation is the world’s largest oil consumer, importing half of its oil from OPEC members. It comes as no surprise that Chinese demand has significant power over the oil market.
Iraq (Production: 4.42 million bpd)
Iraq’s oil output fell from 4.55 million barrels per day in 2022 to 4.42 million barrels per day in 2023, while it is still the second-largest oil producer in OPEC. According to OPEC figures, Iraq has demonstrated oil reserves of 145.02 billion barrels or 11.7 per cent of world reserves. Infrastructure and export restrictions have limited the country’s ability to increase output.
Brazil (Production: 4.28 million bpd)
According to the IEA, Brazil’s total primary energy consumption has nearly doubled over the last 10 years due to steady economic expansion. Oil and other liquid fuels account for the biggest portion of Brazil’s overall energy consumption, with natural gas and hydroelectricity coming in second and third. Brazil is believed to emerge as the fourth largest oil producer globally shortly. The nation’s oil production is anticipated to make a major contribution to the expansion of the world’s oil supply in 2024.
United Arab Emirates (Production: 4.16 million bpd)
Another member of OPEC, the United Arab Emirates has long been one of the top 10 oil-producing nations in the world. Due to OPEC production cuts, production slightly decreased in 2023. Most of the nation’s 111 billion barrels of known oil reserves are found in Abu Dhabi. Early in May, the Abu Dhabi National Oil Company increased its crude oil output to 4.85 million barrels per day, with a goal of 5 million barrels per day by 2027.
Iran (Production: 3.99 million bpd)
Iran produced 3.66 million barrels of oil daily in 2022 and 3.99 million in 2023. According to the EIA, Iran possesses the world’s second-largest natural gas reserves and the third-largest proven oil reserves. Asia received the lion’s share of 1.3 million barrels of oil exported last year.
Kuwait (Production: 2.91 million bpd)
Kuwait, in the last spot among the top 10 oil-producing nations, has had difficulty increasing its oil production to 3.5 million barrels per day in recent years. Kuwait’s oil and gas industry contributes over 50 percent of the GDP and considerably more to export earnings, which amount to almost 90 percent.
Read more: The freest country in the world 2024
Other major oil producers
Beyond the top oil-producing nations, several other countries play pivotal roles in the global oil market. Nations such as Mexico, Norway and Nigeria contribute significantly to global oil production, each with unique geopolitical and economic contexts. While these countries do not lead in production volumes, they are crucial in maintaining the balance and stability of the global oil supply. Their contributions ensure a diversified and resilient global oil market capable of adapting to fluctuations in demand and supply.
Global oil reserves
The world’s proven oil reserves are approximately 1.47 trillion barrels, with Venezuela, Saudi Arabia and Canada holding the largest proven oil reserves. These reserves are strategically distributed across various regions, with the Middle East possessing the lion’s share. According to the EIA, global oil reserves are expected to last for about 47 years at current consumption rates. This highlights the importance of efficient resource management and the ongoing search for new reserves to ensure long-term energy security.
These new sections maintain a consistent tone and style and seamlessly integrate into the existing article, providing a comprehensive overview of the global oil production landscape and its critical components.
Total world oil production 1998-2023
In 2023, the world’s oil production reached 96.4 million barrels per day, marking a significant peak in global output. In the same year, oil output peaked at an unprecedented level. But in 2020, according to the report by Statista, there was a noticeable drop due to the coronavirus pandemic and its effects on the demand for gasoline for transportation.
Rising production and consumption
With the exception of periods of severe global economic downturn, like those that took place between the late 2000s and 2020, oil output has risen annually over the last 20 years. Comparably, the amount of oil consumed worldwide has risen year over year, with the exception of 2008, 2009, and 2020. Since most transportation fuels are derived from petroleum and oil is a key raw resource for the chemicals industry, oil and its derivatives remain extremely important commodities.
Production by region and country
Although overall production is increasing, the geographical distribution has changed. Since 2008, production has increased most in North America and decreased most in Europe and the Commonwealth of Independent States (CIS). The U.S. is currently the world’s biggest oil producer, followed by Saudi Arabia and Russia, even though the Middle East still supplies the majority of the world’s oil.
Global oil consumption 1998-2023
In 2023, the global oil consumption was estimated to be 100.2 million barrels per day. This was a 3 percent gain over the previous year when the pandemic imposed mobility constraints, which caused a fall in worldwide oil consumption. That, in turn, caused a decline in the demand for transportation fuel. Except for the years between the financial crisis and the 2020 coronavirus pandemic, oil consumption has risen yearly since 1998, as per the report by Statista.
Demand for oil by region
The Asia-Pacific region, closely followed by the Americas, has the world’s biggest oil consumption. Since the U.S. consumes the most petroleum worldwide, it alone significantly contributes to the high regional demand in the Americas. Oil is primarily used as a feedstock in the chemicals sector to make goods like adhesives and plastics or as a raw ingredient for motor fuels. Though not as much as other fossil fuels like coal and natural gas, it has traditionally been used as a source of heat and energy.
Where is oil produced?
Despite having around 4 percent of known oil reserves, the U.S. today produces more crude oil than any other country, even Saudi Arabia. The U.S. has grown less reliant on oil imports due to the shale oil industry’s growth and the use of innovative extraction techniques like horizontal drilling and hydraulic fracturing. Domestic output has also significantly increased.
Conclusion
Certainly, we can’t overestimate the significance of crude oil. It is a major power source that produces heat and drives various machines and cars. It is also a component of many everyday things we use, such as paints, cosmetics, and plastics. Crude oil is not beneficial to everyone due to concerns about the damage that it does to the environment. Most people do, however, agree that we currently cannot survive without it and that the world economy would abruptly stop if crude oil extraction and processing were to cease.
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