In this article, we are going to discuss the 20 biggest oil producers in the world. You can skip our detailed analysis of the global oil and gas market, the impact of the Russia-Ukraine war on the global oil sector, and the prevalent use of AI in the oil and gas industry, and go directly to the 5 Biggest Oil Producers in the World.
In the latter half of the 20th century, the global oil market was dominated by a group of multinational, Anglo-American companies known as the ‘Seven Sisters’. And so in hopes of exerting more authority over their own resources, the petroleum-rich nations of Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela banded together and created OPEC (Organization of the Petroleum Exporting Countries) at the Baghdad Conference in 1960. These countries realized they had a non-renewable resource, and if they competed against each other, the price of oil would drop too far, eventually causing them to run out of their precious but finite commodity even sooner.
Currently, OPEC comprises 12 members, and it is estimated that approximately 80% of the world’s proven crude oil reserves are located in its member countries, giving the organization significant influence over the global energy landscape.
Global Oil and Gas Market:
As we mentioned in our article – Oil and Gas Production by State: Top 15 – the global oil and gas market was valued at $6.99 trillion in 2022, and is expected to grow to $8.67 trillion by 2027, with a CAGR of 4.4% during the forecast period. The largest region in the global oil and gas market share is Asia Pacific, with North America coming in second.
The primary factors driving the growth of the industry include the rising demand for oil and gas, growing competition in the industry, financial capital, and public scrutiny. Furthermore, the rising oil and gas exploration activities and the increase in prices globally are also anticipated to drive the industry’s growth.
Impact of the Russia-Ukraine War:
Following President Putin’s invasion of Ukraine, Western policymakers promised to respond to the Kremlin with ‘sanctions from hell’. Yet, the so-called hell is yet to be seen.
In December 2022, the United States, along with the E.U., the G7, and Australia imposed a $60 per barrel limit on what Russia could charge for its oil. The cap was designed to deprive the Putin administration of revenue to fund its aggression in Ukraine, forcing it to either sell its oil at a discount or find a costly alternative shipping network.
Although the initial blow from the sanctions led to a $25 billion deficit in the Russian budget at the beginning of last year, the effects have faded dramatically, as the Kremlin has subsequently learnt to better circumvent those sanctions by pivoting away from western shipping and services. It has done so by using a vast shadow fleet of tankers that have unclear ownership and insurance status, and so the $60 price cap is not always respected. As a result of that, combined with a favorable price dynamic, the Russian state’s energy revenues more than doubled to $17.63 billion from September to October last year.
One of the biggest players to have made the most of this situation is China. The East Asian behemoth imported record volumes of oil last year despite a weak economy, as it took advantage of cheap Russian crude to build stockpiles and export refined products. In the first half of 2023, China imported 2.13 million barrels per day (b/d) of oil from Russia, ahead of 1.88 million b/d from Saudi Arabia, making Russia the top crude supplier to China during the period. To avoid violating Western sanctions, Chinese refiners use intermediary traders to handle shipping and insurance of Russian crude.
This goes to show how the war in Europe has implications that go far beyond the battlefield, thus creating new geopolitical alliances and leading to one of the largest shifts in the global energy market in decades.
Artificial Intelligence in the Oil and Gas Industry:
Major players in the oil and gas industry are looking into big data analytics and AI to enhance decision making abilities and thus profits. AI will allow these companies to make better drilling and operational decisions, assist them in overcoming their challenges, and position them for long-term success.
Shell plc (NYSE:SHEL) has deployed AI across its entire oil and gas supply chain, with over 160 active AI projects. It uses reinforcement learning in its exploration and drilling programme to reduce gas extraction costs. From machine learning to computer vision, deep learning to virtual assistants and autonomous vehicles to robotics, Shell plc (NYSE:SHEL) has been focused on a range of technologies that have supported advances in AI. In fact, the oil giant also offers an AI Residency Program, which gives data scientists and AI engineers experience with several AI projects across the company.
Shell plc (NYSE:SHEL) ranks among the Best Energy Stocks to Invest in According to Hedge Funds.
The Exxon Mobil Corporation (NYSE:XOM) is another major player that has prominently adopted a digital mindset in the oil and gas sector. The Texas-based company has collaborated with IBM’s Data Science and AI Elite Team and seismic experts to use AI to interpret and integrate data from siloed systems into one repository, which is hosted on a multi-cloud environment. The Exxon Mobil Corporation (NYSE:XOM) is also enhancing its customers’ experience at the pump by offering mobile apps for payment options, customer loyalty programs, and comprehensive car maintenance experiences.
The Exxon Mobil Corporation (NYSE:XOM) is placed among the Best Large-Cap Value Stocks to Invest in in 2024.
With that said, here are the Largest Oil Producing Countries in the World.
An oil worker wearing a hard hat and a safety vest checking an industrial oil pump.
Methodology:
To collect data for this article, we have referred to the 2023 Edition of the Statistical Review of World Energy by the Energy Institute, looking for the Largest Oil Producers in the World. The following countries have been ranked by their total oil production in 2022, measured in barrels per day (b/d). It includes crude oil, shale oil, oil sands, condensates, and NGLs, but excludes oil shales/kerogen extracted in solid form.
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20. United Kingdom
Total Oil Production: 778,000 b/d
Although the U.K. produces a significant amount of oil from its own resources, its refineries are not equipped to process the sour crude extracted from the North Sea. As a result, the majority of the domestically produced oil is shipped off to other markets and the country’s own refineries rely heavily on imports.
The majority of oil imported to the U.K. comes from Norway, which supplies it with roughly 11.7 million metric tons of crude oil annually.
19. Oman
Total Oil Production: 1,064,000 b/d
Oman is the largest oil and natural gas producer in the Middle East that is not a member of the Organization of the Petroleum Exporting Countries (OPEC). Oman’s oil reserves primarily consist of heavy crude and the oil industry accounts for roughly 30% of the country’s GDP.
18. Libya
Total Oil Production: 1,088,000 b/d
Libya ranks among the Countries with the Cheapest Gas Prices in the world. The gas price is determined by the National Oil Corporation and is heavily subsidized by the government. The price of Libyan gasoline is, in fact, even cheaper than water.
Libya is one of the top oil producers in Africa and exported around $27 billion of crude in 2021.
17. Angola
Total Oil Production: 1,190,000 b/d
Aside from being the second-largest oil producing country in Africa, Angola also gives gas subsidies to its people and doesn’t add taxes to the pump price. However, despite its high oil production, Angola meets most of its petroleum needs from exports, as the southern African nation currently has only one operational refinery located near the capital Luanda. A new refinery in Cabinda is currently under construction and is expected to be complete by mid-2024.
Angola recently withdrew its membership from OPEC effective January 1st 2024.
16. Nigeria
Total Oil Production: 1,450,000 b/d
It was announced in January that Africa’s largest oil refinery has finally started production in Nigeria. In a nation that largely relies on imports for refined petroleum, the $19 billion facility comes as a boon and has the capacity to produce 650,000 barrels per day.
15. Algeria
Total Oil Production: 1,474,000 b/d
Algeria imports very little energy as its domestic consumption is met by its own oil and natural gas production, which is heavily subsidized. Oil production accounts for nearly all of the North African country’s export economy, with 60% of Algeria’s entire production going towards exports.
In 2022 Algeria completed work on a crude oil refining project in Hassi Messaoud, the largest oil city in the country, to pump 60,000 barrels per day.
14. Qatar
Total Oil Production: 1,768,000 b/d
Qatar, one of OPEC’s longest-standing members, left the organization in January 2019 to shift more of its resources and investment from oil production to natural gas and LNG infrastructure projects. According to the U.S. Energy Information Administration, Qatar’s earnings from its hydrocarbon sector accounted for 81% of the country’s total government revenues in 2021, up from 77% in 2020.
Qatar is included among the Richest Countries in Petroleum in the world.
13. Kazakhstan
Total Oil Production: 1,769,000 b/d
Kazakhstan has the largest proved oil reserves in the Caspian Sea region, and the country’s crude and condensate output in 2021 was around 1.8 million barrels per day. Chevron Corporation (NYSE:CVX) is the largest private oil producer in Kazakhstan, holding important stakes in two of the nation’s biggest oil-producing fields – Tengiz and Karachaganak. Chevron Corporation (NYSE:CVX) is also the largest private shareholder in the Caspian Pipeline Consortium (CPC). The Caspian Pipeline provides an important export route for crude oil from Tengiz and Karachaganak. A major expansion of the pipeline was recently completed.
Chevron Corporation (NYSE:CVX) ranks among the Best Dividend Stocks for Rising Interest Rates.
12. Norway
Total Oil Production: 1,901,000 b/d
In June 2023, the Norwegian government gave its approval to oil companies to develop 19 oil and gas fields with investments exceeding $18.51 billion, part of the Scandinavian nation’s strategy to extend production for decades to come.
Norway is the Largest Oil Producing Country in Europe.
11. Mexico
Total Oil Production: 1,944,000 b/d
Oil is a vital component of the Mexican economy and the oil industry accounted for almost 20% of the total government revenues in 2022. Petróleos Mexicanos, also known as Pemex, is by far the largest company in the Mexican oil and gas sector. The state-owned oil producer reported a net profit of $1.25 billion in 2022.
10. Kuwait
Total Oil Production: 3,028,000 b/d
Kuwait is a major oil producer and a member of the OPEC consortium. Oil accounts for nearly half of the country’s GDP, and around 95% of exports revenue. Kuwait wants to increase its oil production capacity to 4 million b/d by 2035, and is thus planning to prepare the infrastructure for the Durra gas field, which it shares with Saudi Arabia and Iran claims a stake in.
9. Brazil
Total Oil Production: 3,107,000 b/d
Though Brazil is the Biggest Oil Producer in Latin America, the country continues to import petroleum products to meet the rising domestic demand and to compensate for its fuel price subsidies. Brazil’s state-controlled oil giant Petrobras also has to compete with importers and its next five-year strategic plan will focus on making the country self-sufficient in gasoline and diesel production.
8. Iran
Total Oil Production: 3,822,000 b/d
For Iranians, cheap gasoline is practically considered a birthright, as their country holds some of the largest crude oil reserves in the world. Heavy state subsidies have been keeping gas prices low, however, due to the widening gap between supply – which is limited by domestic refining capacity – and rising demand, the government has been forced to tap its strategic reserves and import petrol for the first time in a decade.
7. United Arab Emirates
Total Oil Production: 4,020,000 b/d
Although the U.A.E. ranks among the Top 10 Oil Producing Countries, the COP 28 host claims that it is investing ‘way more’ into renewable energy than in oil and gas. In 2022, the United Arab Emirates invested a whopping $36 billion in overseas renewable energy projects, highlighting its commitment to a greener future.
6. China
Total Oil Production: 4,111,000 b/d
With total oil imports of $366.51 billion in 2022, China tops the list of Countries that Import the Most Oil in the world. Another reason the People’s Republic has increased oil imports and refining capacity is also to sell to other nations, particularly in Asia.
China was also the Biggest Buyer of Saudi Oil in 2022, buying 87.49 million tonnes of crude during the year, equivalent to 1.75 million barrels per day.
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Disclosure: None. 20 Biggest Oil Producers in the World is originally published on Insider Monkey.
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