COVID-19 disruptions, price wars between oil-producing nations, and now the Russia/Ukraine war have all had a substantial impact on the global oil market in recent years.
![Top 10 Oil-producing Countries](https://jaybesttrends.com/wp-content/uploads/2022/10/images-2022-10-25T170127.968.jpeg)
The output limitation agreement signed by the Organization of Petroleum Exporting Countries (OPEC) and 11 of the world’s largest oil producers expires in 2020. When Russia refused to approve further cuts requested by Saudi Arabia in April of that year, the de facto OPEC leader replied by offering its products at a discount and producing more oil.
Oil prices fell as a result of an oversupplied market and a lack of demand, startling market participants. Finally, under pressure from the US, Russia, and OPEC agreed to cut output by 9.7 million barrels per day (BPD), the single largest output decline in history.
Oil demand recovered in 2021 as COVID-19 lockdowns loosened globally, pushing prices higher. Russia’s aggressive assault on Ukraine has sent oil prices rising through 2022.
Given these and other recent market events, many investors are interested in learning which countries produce the most oil and may be able to fill the gap if the West imposes additional sanctions on Russia. Continue reading to learn about the top ten oil-producing countries in 2021. The Energy Information Administration (EIA) provides statistics on total petroleum and other liquid output.
1. Production in the United States: 18,875,000 bpd
The United States is first among the top ten oil-producing countries. It boosted output by 266,000 bpd from 2020 to 18,875,000 bpd last year. The United States has been referred to as a swing producer since its output changes in tandem with market pricing. Texas is the largest oil-producing state in the US, with output over four times that of New Mexico, the second largest oil-producing state.
In addition to being a large oil producer, the United States is a major oil consumer. Last year, the United States consumed 7.22 billion barrels of petroleum products, or an average of 19.78 million bpd.
2. Saudi Arabia Production: 10,835,000 barrels per day
In 2021, Saudi Arabia’s oil output was 10,835,000 bpd. The country holds 17% of the world’s proven petroleum reserves and is the world’s largest petroleum exporter. Its oil and gas sector accounts for around 50% of its GDP and approximately 85% of its export profits.
As previously stated, Saudi Arabia played a crucial role in OPEC’s decision to reduce oil supply in 2020. To meet the terms of an agreement agreed with other OPEC members and allies, the country chose to restrict output by 3.3 million bpd. In 2022, the country’s relations with the United States have deteriorated to the point where the Arab kingdom appears unlikely to raise output in order to reduce growing gasoline prices.
3. Russia’s output: 10,778,000 bpd
Prior to the 2020 production cuts, Russian oil output had been steadily increasing for several years, reaching 10,778,000 bpd last year. The majority of Russia’s reserves lie in West Siberia, between the Ural Mountains and the Central Siberian Plateau, as well as in the Urals-Volga region, which stretches all the way to the Caspian Sea.
Russia, the world’s third largest oil producer, contributes for 10% of worldwide output. In response to Russia’s war in Ukraine, Canada, the United States, the United Kingdom, and Australia have blocked imports of Russian oil, which accounts for roughly 13% of Russia’s exports.
The International Energy Agency (IEA) warned in March 2022 that Russia could be compelled to decrease 30% of its crude oil production, resulting in a catastrophic global oil supply crisis. The IEA added, “The implications of a potential loss of Russian oil exports to global markets cannot be overstated.”
4. Production in Canada: 5,558,000 bpd
Canada comes in second on this list of the top ten oil-producing countries. The country’s yearly oil production increased to 5,558,000 bpd in 2021, up from 5,235,000 bpd in 2020.
Alberta contains nearly all of Canada’s proven oil reserves, with 97 percent of those reserves being oil sands, according to the province’s government. The great bulk of Canada’s total energy exports are to the United States. However, due to economic and political factors, Canada is working to diversify its trading partners, particularly by growing connections with Asian rising nations.
Pipelines have sparked a national discussion in Canada. The federal government paid C$4.5 billion for the Kinder Morgan (NYSE:KMI) Trans Mountain pipeline in 2018 to ensure Canadian crude reaches market ports. An expansion was anticipated to cost another C$7.4 billion at the time, after which the government would sell the project to the private sector. A new cost estimate for the project increased the C$7.4 billion number to C$12.6 billion in February 2020; that figure was modified again in February 2022, nearly tripling to C$21.4 billion.
5. China’s output: 4,993,000 bpd
In 2021, China’s annual oil output was 4,993,000 bpd. The country is the world’s second largest user of oil, having risen from the second greatest net importer to the largest in 2014.
China is the world’s most populated country and has a rapidly rising economy, all of which have contributed to the country’s high overall energy demand. In reality, the Asian country is the largest consumer of oil, with OPEC member countries accounting for 55 percent of its imports.
According to Reuters, throughout the first few months of 2022, China’s crude oil refineries reduced output owing to COVID-19 lockdowns, as the virus continues to test the government’s zero-COVID plan.
6. Iraqi production: 4,149,000 barrels per day
Despite growing output, Iraq lost its status as the sixth largest oil-producing country in 2017. The Middle Eastern country’s output in 2018 helped it reclaim sixth place.
The country’s oil production has dropped dramatically in recent years, from 4,788,000 bpd in 2019 to 4,149,000 bpd in 2021. With 145 billion barrels of proved oil reserves, it ranks fifth in the world, accounting for 8.4 percent of worldwide reserves.
7. Production in the United Arab Emirates: 3,786,000 bpd
The UAE is an OPEC member and has consistently placed among the top ten oil-producing countries in the world. It saw a minor year-on-year gain in production in 2021, with oil output increasing to 3,786,000 bpd.
With 98 billion barrels of proven oil reserves, the country ranks seventh in the world, with the majority of those reserves located in Abu Dhabi. The United Arab Emirates holds 5.6 percent of the world’s total reserves.
8. Brazil’s production-3,689,000 bpd.
Brazil’s oil production declined marginally from 3,769,000 barrels per day in 2020 to 3,689,000 barrels per day in 2021. Total primary energy consumption in Brazil has nearly doubled in the last decade as a result of sustained economic expansion, according to the EIA. Oil and other liquid fuels account for the majority of Brazil’s overall energy consumption, followed by hydroelectricity and natural gas.
Brazil was reportedly in talks with the US in April 2022 to expand its oil production in reaction to Russia’s war in Ukraine.
9. Iran’s production: 3,458,000 barrels per day
Iran’s oil production grew considerably last year, rising from 2,990,000 barrels per day in 2020 to 3,458,000 barrels per day in 2021. Iran has the world’s third greatest proven oil reserves and the world’s second largest natural gas reserves, according to the EIA. Despite its enormous reserves, Iran’s oil production has declined significantly in recent years; in 2017, it produced 4,779,000 bpd.
Iranian energy production has been hampered by US sanctions and regional tensions. China recently struck a 25-year trade and security agreement with Iran and has urged the United States to lift sanctions.
10. Kuwaiti Production: 2,717,000 barrels per day
Kuwait is the last country on this list of the top ten oil-producing countries, with output falling in 2021 for the third time since 2018. Production peaked at 3,072,000 bpd in 2016, then fell to 3,025,000 bpd in 2017. The country experienced a minor comeback in 2018, producing 3,059,000 bpd; however, production decreased again in 2019 to 3,017,000 bpd.
Kuwait is oil and gas sector accounts for over 60% of the country’s GDP and an even bigger share of its export revenues, accounting for approximately 95%.
Disclaimer
Comments expressed here in the comment section of this article/post do not reflect the opinions of Jaybest Trends or any employee thereof.
The information Contain on this website is published in good faith and for general information purpose only. Jaybest Trends does not make any warranties about the completeness, reliability, and 100% accuracy of this information. Any action you take from the information you find on this website , is strictly at your own risk. Jaybest Trends will not be liable for any losses and/or damages in connection with the use of our website. Check here
Stay informed!
Don’t miss out latest information from us, For Latest updates on News, Movies, Business Ideas, Top Ranking, Biographies, Trending Videos and Opportunities.
Click Here to Join Our Telegram Channel
Click Here To Go To Our Latest News
Copyright Warning!
Contents on Jaybest Trends may not be republished or redistributed either in whole or in part without due permission or acknowledgment from us.
If you are to republished, reproduce or redistribute this content you should make proper acknowledgment to Jaybest Trends, including but not limited to;
Linking back to this article (Back linking) – if you are using it in your website or any online media.
Proper given reference – if you are using it in brochure, research, audio, video, magazine’s or any academic purposes.
Images and Video clips except where otherwise indicated are taken from the web, using Google search (DISCLAIMER) . Some images and video clips may be posted mistakenly, if this happened be your image/video or violate your copyright policy, please do well to inform our team ([email protected]) for immediate removal.