In 2022, the cost of oil surged to over $100 per barrel, reaching its highest point in eight years. This increase followed a year of significant instability in the energy markets due to the Russian invasion of Ukraine. As a result of this price surge, oil companies saw their profits double, and the economies of the largest oil-producing nations experienced a substantial upturn.
Now, let’s explore which countries play a pivotal role in the global oil supply. Using data from the Energy Institute’s Statistical Review of World Energy here’s is a visualization and rankings of the world’s leading oil producers.
Ranked: Oil Production By Country, in 2022
The U.S. has been the world’s biggest oil producer since 2018 and continued its dominance in 2022 by producing close to 18 million barrels per day (B/D). This accounted for nearly one-fifth of the world’s oil supply.
Almost three-fourths of the country’s oil production is centered around five states: Texas, New Mexico, North Dakota, Alaska, and Colorado.
Here’s a ranking of top 11 major oil producers in the world.
The United States maintains a substantial lead in oil production, while Saudi Arabia, ranked second, produced 12 million barrels per day (B/D), contributing to approximately 13% of the world’s total oil supply in 2022.
Russia secured the third position, producing 11 million B/D during the same year. When combined with Canada (ranked fourth) and Iraq (ranked fifth), these top three oil-producing nations collectively account for more than half of the world’s entire oil production.
Furthermore, the top 10 oil producers, encompassing countries ranked from 6th to 10th, namely China, the United Arab Emirates (UAE), Iran, Brazil, and Kuwait, collectively bear the responsibility for over 70% of global oil production.
Noteworthy is the fact that all of these top 10 oil-producing giants witnessed an increase in their production levels between 2021 and 2022. Consequently, global oil output experienced a 4.2% year-on-year rise.
Major Oil Producing Regions in 2022
The Middle East accounts for one-third of global oil production and North America makes up almost another one-third of production. The Commonwealth of Independent States—an organization of post-Soviet Union countries—is another major regional producer of oil, with a 15% share of world production.
One striking observation in the data is the evident decline in Europe’s share of oil production, which has dwindled to just 3% of the global supply. Over the past two decades, the European Union (EU) has witnessed a significant decrease of over 50% in its oil output. This decline can be attributed to a range of factors, including the implementation of more stringent environmental regulations and a transition towards the use of natural gas as an alternative energy source.
Another perspective to consider regional oil production is by examining the members of the Organization of the Petroleum Exporting Countries (OPEC), which collectively exercise control over approximately 35% of the world’s oil production and possess around 70% of the world’s oil reserves.
When taking into account the group of 10 oil exporting countries OPEC has relationships with, known as OPEC+, the share of oil production increases to more than half of the world’s supply.
Oil’s Big Balancing Act
The global oil industry represents a delicate balancing act with profound implications. As the vital lifeblood of the modern economy, nations with substantial control over oil production enjoy substantial political and economic advantages. This invaluable resource has not only propelled entire regions into prosperity but has also been at the center of conflicts and wars fought over its control.
Simultaneously, the ongoing global effort to transition towards renewable energy sources is compelling many major oil-exporting nations to diversify their economies. A prominent example is Saudi Arabia, which has directed its sovereign wealth fund to invest in companies like Uber and WeWork, signaling a strategic shift.
However, the world still needs oil, as it supplies nearly one-third of global energy demand.
Source: Visual Capitalist
