Oil is one of the most valuable, much demanded, expensive, and an important source of natural energy in the world. Oil production usually refers to the total number of oil barrels that are extracted on daily basis through the oil extraction machines and the various drilling process. In accordance to an estimate held by IEA in 2011 , 63% of the world’s total oil output is obtained by the top ten 10 oil producing countries in the world, which are given below:
10. Kuwait
Kuwait is the tenth largest oil producer in the world, with a daily production of 2,797 thousand barrels of crude oil. The proven reserves of Kuwait are 104 billion barrels, which is the sixth largest oil reserve in the world. The major oil fields of this country are in the Burgan field, which is located in the deserts of southeastern Kuwait. This oil field was discovered in 1938, but commercial production started only in 1946. The Burgan field is the second largest oil field in the world.
In the coming years, a lot of fluctuations are expected to occur in the oil industry.In June of 2013, it was announced by Kuwait National Petroleum CO (KNPC) that all of its oil exports were halted due to a severe sand storm. The weather was a result of winds blowing from the East and high altitude concentration on the North Arabian Peninsula that closes the atmospheric pressure lines. The stormy weather continued into the new year, despite experts’ prediction that it will end in November. How will this effect on Kuwait’s rankings – we’ll have to wait and see.
9. United Arab Emirates
This federation of seven states is one of the leading oil extractors and oil producers in the world. Befor this rich natural resource was discovered, the economy of UAE carried on huge trade transactions by relying heavily on fishing and the pearls industry. During the medieval era of the 1900, Abu Dhabi created history and went on to become the first of the emirates to begin the oil business. After a step in the right direction, UAE has been growing tremendously. Other countries were not expecting such high potentials of Abu Dhabi in the oil industry. This development was marked since UAE earned enormous profits in the oil industry and directed its oil revenues into various humanitarian and economic sectors like healthcare, education and the national infrastructure for the betterment of its people and the entire nation. The growth of oil industry also gave rise to employment opportunities giving various kinds of jobs to the unemployed and the underemployed. This industry collaborated a lot of foreign workers with the expatriates who today make up 3/4 of the population in the Emirates.
An Energy Summit is taking place in UAE (Jan. 2014). The discussion: Can UAE ditch oil for renewable power? This three-day meeting is expected to receive 30,000 delegates from 172 countries, who will discuss the new paradigms and challenges in traditional and renewable energies. For the first time since its inception in 2008, the WFES has launched a parallel conference “Ecowaste” on waste management along with more than 900 exhibiting firms.
8. Venezuela
Venezuela currently stands as the eighth largest oil exporting country in the world with the highest reserves of heavy crude oil extraction, estimated at 99.4 billion barrels of oil annually. In 2010, crude oil production in Venezuela was the tenth-highest in the world at 2,394,020 barrels per day. Canada and Venezuela are two countries that have amazing potentials for increased capacity and extraction expansion of high and extensive crude oil. Venezuela could possibly increase its production capacity within the next twenty-five years. This potential growth would necessitate a huge capital investment to bring about growth and large reservoirs in Venezuela. The growth of Venezuela demonstrated every capability to bring new oil fields and extraction processes on stream since nationalizing heavy oil projects in the Orinoco heavy oil belt under former operational international capacities. The United States of America currently holds accounts of nearly 65 percent of Venezuela’s exports in oil production.
On December 16, 2013, Venezuelan President Nicolas Maduro proposed ways to use a weaker exchange rate in order to improve prospects of its ailing oil sector and deal with a worsening economic crisis. Venezuela’s foreign exchange reserves have been at their lowest levels since 2004. The weaker exchange rate allows the government to earn more Bolivars for every barrel of oil sold, which is priced in dollars on the international front.
The measure appears to only affect oil transactions. The official exchange rate in Venezuela is 6.3 Bolivars for every dollar, while the alternative exchange rate used for oil sale is near 12 Bolivars per dollar, Wall Street Journal reported. Unofficially, exchange rates on the black market often mean people pay as much as 60 Bolivars for every dollar.
In January 2014, Bloomberg News reported that Venezuela’s oil production slid for an eighth consecutive month in December 2013 as delays to obtain external financing hampered efforts by Petroleos de Venezuela. Venezuela, Latin America’s largest oil producer and exporter, produced 2.45 million barrels a day in December, that was a decrease by 235,000 barrels from November. Monthly output has been tumbling since April of the same year.
It also appears Venezuela isn’t pumping out nearly as much oil as it claims. According to the latest monthly repor released by the Organization of the Oil Exporting Countries (OPEC), Venezuela’s state-owned oil company Petróleos de Venezuela S.A. (PDVSA) was reportedly reporting production levels well above secondary source estimates in 2013. During the summer of 2013, the country’s state-owned oil company reported outputs of roughly 2.8 million barrels a day, nearly half a million barrels above outside estimates of closer to 2.35 million. Is corruption still present in this Communist run country? With death of Hugo Chavez on March 5, 2013 and the succession of Nicolás Maduro, the world expected differently.
7. Mexico
Being the seventh largest oil producer in the world, Mexico produces 3.71 million barrels per day of petroleum and oil products, out of total production 3.25 million barrels per day consists of crude oil. Commercial oil production was started in 1901 in Mexico and they are doing well in the crude oil industry and because of that crude oil production plays a very important part in the Mexican economy. Mexico have a total global share of 3.56% of crude oil. However, Mexican petroleum production peaked in 2008 and now the oil production and export in Mexico is going in a severe decline.
6. Canada
Petroleum production and oil industries are major industries in Canada and leading reasons for economic growth in the West, especially in Alberta. Canada has righteously gained its position being the sixth largest oil production country in the world. Canada has the potential to produce approximately 438,000 cubic meters per day of crude oil, bitumen and natural gas condensate. Out of the total amount of 438,000 cubic meters per day, 45% was allocated to crude oil, 49.5% was bitumen from oil sands, and 5.5% was condensate from natural gas wells. Maximum Canadian petroleum production is approximately 283,000 cubic meters per day which is exported to the United States; 95% of oil that is produced in Canada is exported to the United States. Undoubtedly Canadians remain one of the large owners, extractors, exporters of oil and petroleum. Adding to the credentials of Canada it is also the largest single source of oil exports to the United States. Canada is often referred to as the “oil patch” because of its availability of oil and petroleum. The year 2005 also witnessed that almost 25,000 new oil wells were created in Canada and on a daily average over 100 new oil wells are drilled in the province of Alberta solely.
Growth in the Alberta tar sands industry will depend on the construction of the disputed Keystone XL pipeline, which would increase the flow of the oil to the United States, and Line 9, which would transport the oil from Alberta to eastern Canada. This year alone, Prime Minister Stephen Harper, senior government official and premiers have made no less than a dozen visits to the US to promote the Keystone XL pipeline. According to the Guardian, the Harper government “has increased its advertising spending on the Alberta tar sands to $16.5m from $9m a year ago.”
Oil sands production is projected to grow significantly in the years ahead. That carries risks for our environment and, as today’s report shows, for our economy as well. The Alberta tar sands developments are also blamed for a spike in incidence of blood cancer for First Nations communities in the area.
5. China
This probably comes as a shock to many people reading this list. China used to import all its oil up until the late 1950s, before the discovery of huge reserves in the northeastern part of the country. Their share in world production is at 4.7 percent, but like the United States, China is a huge oil consumer. The demand for the resource within the country is so large that not even a ramped-up production process is enough to satisfy the demand. Their proven reserves stand at around 20.35 billion barrels. But with the implementation of hydraulic fracturing and other technology these seem likely to increase in the future.
Experts predict that China’s oil and gas production could double its current volumes by 2030, largely boosted by a growth in natural gas production as well as unconventional resources. The MLR forecasts that between now and 2030, China’s annual crude production could be sustained at over 200 million mt (4.02 million b/d), possibly hitting a peak of 250 million mt. Whether this will happen, we’ll have to wait and see.
4. Iran
Iran is an energy superpower and oil production has helped Iran attain this title. In 2004, the country produced approximately five percent of the world’s total crude oil which was about 3.9 million barrels of oil per day. Crude oil generates revenue in billions acting as a primary source of foreign currency. No other nation comes anywhere near the advancement, credentials and growth of Iran, because of its constant focus and primary importance that has been given to the hydrocarbon sector. In the Top 10 List of oil producing countries, Iran has kept its steady place at no. 5 and for good reason.
Iran also plays a very important role in the oil management is the world. The oil and gas industry has been one of the strongest reasons of the increasing trend of economic growth, thereby bringing growth in the development projects for the people, the government’s yearly budget, and most important foreign exchange and foreign investment sources. Oil and gas revenues are affected by the increasing trends in the value of crude oil on the international market. During 2012, Iran a country that exports around 1.5 million barrels of crude oil a day is the fourth-largest exporter among the Organization of Petroleum Exporting Countries. Iran also has various goals and plans to invest a total of $500 billion in the oil extraction and producing sectors in a span of next 20 years.
3. The United States
Petroleum in the USA has been a dominating industry since the discovery of oil and petroleum in the Oil Creek area of Titusville, Pennsylvania in the historic year of 1859. The U.S. is the world’s third-largest oil producer, producing 8.5 million barrels of oil and natural gas liquids every day. Gulf of Mexico is one of the most famous and leading oil producing sector which produced 1.15 million barrels per day, further followed by Texas 1.09 million barrels per day, not leaving Alaska behind by 0.68 million barrels and California 0.59 million barrels per day. Today, petroleum is the largest source of energy in the U.S., providing 38% of the energy consumed in the world. Out of the enormous production of oil, the U.S. imports 49 percent of the petroleum it uses. The U.S. petroleum industry, which includes the production, processing, transportation, and marketing of natural gas and petroleum products, makes it a leader in oil trade.
A frequent question asked by environmental groups, such as EIA, is: how much of the oil produced in the United States is consumed in the United States? EIA cannot determine exactly the amount of crude oil produced in the United States (U.S.) that is consumed, as refined products. However, the majority of the crude oil produced in the U.S. is refined in U.S. refineries. The U.S. also produces other liquids that are used in the refining process that are added or blended with the refined products.
2. Saudi Arabia
Saudi Arabia is the second largest oil reservoirs in the world and holds one-fifth of the world’s proven oil reserve. Saudi estimated to be 267 billion barrels in a span of few years. Oil reserves of Saudi are about one fifth of the world’s total oil reserves. The large fraction of Arabia’s oil reserve comes from various numbers of oil fields and its past production that amounts to a good 40% of the back up reserves. Saudi Arabia is the owner of 100 or more than 100 major oil and gas fields which includes one of the most well known Gawahar Field which is the world’s biggest oil fields in the world. The major extraction of oil in this country is from merely five fields that it occupies and the 60% of the production comes from the Gawahar field. Saudi Arabia plays one of the most pivotal roles in the global energy industry levels. Saudi Arabia is committed to ensuring stability of supplies and prices of oil and petroleum. With its committed professional and recovering attitudes, Saudi Arabia has surpassed major shocks to the global economy and has saved the globe from the loss of supply or sudden price increases.
In recent years, Saudi Arabia has focused its attention beyond increasing oil production capacity after state-owned oil company Saudi Aramco reached the targeted 12 million barrels per day in 2009. With the near-completion of its largest oil projects, Saudi Arabia is expanding its natural gas, refining, petrochemicals, and electric power resources.
1. Russia
Russia is the largest producer of oil in the world and is a pioneer in the oil industry. It is also the second-largest producer of dry natural gas and the third-largest liquid fuels producer in the world. Despite its significant reserves of coal, it produces only modest amount of coal. Russia’s economy is highly dependent on its hydrocarbons, and oil and gas revenues account for more than 50% of the federal budget revenues. the pioneers of oil producer in the world today, it’s proven that Russia has great potentials to produce an average of 9.93 million barrels of oil per day. Russia contributes a good 12% of the world’s oil and also holds an equal share in the world’s oil exports. There are a lot of credentials that Russia has achieved for itself. Maximum of Europe markets are full with the Russian exports of oil and petroleum. There has been a very high domestic demand of Russian oil in Russia as well as other countries. The next few years look promising to Russia as they seem immovable from their first position of this top ten list. Ever increasing growth of the Russian economy indicates that there will be parallel local demand for energy of all types such as oil, gas, nuclear, coal, hydrocarbons, electricity etc.
Most of Russia’s oil production comes from West Siberia, notably from the Priobskoye and Samotlor fields. The Sakhalin group of fields in the Far East only contributes to approximately 3% of Russia’s total production, although it has yet to fulfill the expectation that it would contribute significantly to Russia’s total oil production. In the longer term, however, Sakhalin, along with the untapped oil reserves in Eastern Siberia and the Russian Arctic, may play a much bigger role. Several international oil companies are actively working in this area. The Russian sector of the Caspian Sea and the undeveloped areas of Timan-Pechora in northern Russia also may hold large hydrocarbon reserves.
In October 2013, Reuters reported that the U.S. plans to overtake Russia as the world’s largest producer of oil and natural gas, a startling shift that is reshaping markets and eroding the clout of traditional energy-rich nations U.S. energy output has been surging in recent years, a comeback fueled by shale-rock formations of oil and natural gas that was unimaginable a decade ago. A Wall Street Journal analysis of global data shows that the U.S. is on track to pass Russia as the world’s largest producer of oil and gas combined this year—if it hasn’t already. Whether this will happen or not, we shall wait and see.