It’s not a secret that the world oil market is evolving quickly. Thanks to new technology and alternatives to fuels the need for oil is decreasing. This could have a significant impact on the top 10 largest oil producing countries in the world.
Oil is among the most lucrative commodities for money around the globe today. Essential to producing diesel, gasoline jet fuel, and various other products oil is one of the most vital and essential sources of energy in the current world.
About half of the world’s nations produce oil in some capacity. Production of oil is measured by barrels per day or BPD. The majority of oil-producing countries produce thousands or millions of barrels daily and their output is typically constrained by market forces rather than the capacity of production.
Here is the list of the top 10 largest oil producing countries in the world:
|Rank||Country||Barrels per day|
|1.||United States||16.6 million|
|2.||Saudi Arabia||11.0 million|
|7.||United Arab Emirates||3.7 million|
Largest Oil Producing Countries In The World
1. United States
At the top of the list of the 10 largest oil producing countries in the world is the US. The US is described as a swing producer due to the fact that the amount of oil produced fluctuates in line with the market price.
Texas is leading the way as the largest oil-producing state in America producing almost four times that of the next largest-producing state for oil, New Mexico.
2. Saudi Arabia
The country has 17.5% of all proven petroleum reserves and is the biggest exporter of petroleum. The gas and oil sector is responsible for about 50% of its gross domestic product, and around 85 percent earnings from exports.
As we’ve mentioned earlier, Saudi Arabia played a significant role in OPEC’s decision to reduce the production of oil in 2020. In 2022, Saudi Arabia’s US relations have become strained to the point where the Arab kingdom appears to be reluctant to boost production to help reduce the rising cost of gasoline.
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The majority of Russia’s reserves lie within West Siberia, between the Ural Mountains and the Central Siberian Plateau as also in the Urals-Volga region which extends into the Caspian Sea.
The third largest oil producer nation, Russia accounts for 10 percent of the global production. In response to Russia’s conflict with Ukraine, Canada, the US as well as Canada, the US UK, as well as Australia, have imposed a ban on exports of Russian oil, which is about thirteen percent of the exports from Russia.
In March 2022 the International Energy Agency (IEA) warned that Russia might be forced to reduce 30 percent of its oil production in the crude form which could result in a severe global supply oil crisis. “The consequences of a loss of Russian exports of oil to international markets cannot be overstated,” the IEA stated.
The next on this ranking of 10 of the largest oil producing countries in the world is Canada. A majority of Canada’s reserves of oil are in Alberta and, according to the provincial government that 97 percent of reserves of oil in Alberta are comprised of oil sands.
Exports of energy to the US make up the vast majority of Canada’s overall exports of energy. But, due to political and economic factors, Canada is developing ways to diversify its trading partners, particularly by establishing ties to new markets that are emerging in Asia.
Canada is involved in a debate across the country over pipelines. In the year 2018, the federal government bought Kinder Morgan’s Kinder Morgan (NYSE: KMI) Trans Mountain pipeline for C$4.5 billion to ensure that Canadian crude gets to market ports.
The time was when expansion was expected to cost an additional C$7.4 billion. After that, the government would then sell the pipeline to the hands of the private sector.
On February 20, 2020, the revised estimated cost of construction was released, lowering the C$7.4 billion figure down to C$12.6 billion. That number was re-adjusted by February 2022. almost increasing by C$21.4 billion.
Oil production in Iraq has increased dramatically over the last 10 years. Although the country produced 1.7 million barrels per day in 2013 Iraq produced an estimated 4.1 million barrels daily between 2022 and 2023.
With the fifth largest discovered oil reserves at 45 billion barrels, Iraq has a significant oil production capacity that could aid the country to expand.
With a population of 1.4 billion inhabitants and its expanding business, China consumed 15.3 million barrels of other liquids and petroleum in 2021.
However, the country produced only 4 million barrels of crude per day of crude in the year prior. Because of this gap, China has invested substantial capital in oil-related projects in other countries and is also a major buyer of oil.
7. United Arab Emirates
The United Arab Emirates is an OPEC member and has been consistently among the top 10 largest oil producing countries in the world for a long time.
The country is home to the eighth-largest proven reserves of oil at around 98 billion barrels, with the bulk of those reserves within Abu Dhabi. It is believed that the United Arab Emirates accounts for 5.6 percent of the world’s total reserves.
Iran is listed as one of the top oil producers around the globe, with a production of more than 3.6 million barrels of oil per day. Due to U.S. sanctions, however, Iran isn’t producing as the amount it should.
According to the EIA agency, it “assesses the possibility that production in Iran may be restored to its full capacity around 3.8 million barrels of oil daily (b/d) when there is a lifting of sanctions by the United States lifts oil sector sanctions.”
Brazil is an oil-producing nation of major importance producing crude oil that will exceed 3 million barrels a day by 2021.
Over the past 10 years, the production of oil in Brazil has increased by 1.6 million BPD as the production of pre-salt oil increased by 1.6 million barrels per day between 2012 and 2019.
In the words of the EIA, “Increased growth in pre-salt field production will drive Brazil’s crude oil production in the next 10 years and the shipping of crude oil is likely to grow as well.”
While it’s a tiny nation, Kuwait is a big market participant in the oil industry and has a crude oil output that is close to 2.7 million barrels every day.
Kuwait is estimated to have 10 billion barrels of proven oil reserves which amounts to 6 percent of the world’s total. In recent times, Kuwait has increased natural gas exploration to diversify the energy mix of its production.