Tuesday, May 9th, 2023 and is filed under Oil and Gas Current Events, Oil and Gas Fun Facts
As of 2022, the global demand for oil remains high despite the increasing push by western countries to use more renewable energy sources. Oil is a vital component of the global economy, and the countries with the largest oil reserves are some of the wealthiest nations in the world. In this article, we will discuss the eight top oil producing countries in the world in 2022, ranked in order from highest to lowest.
The methodology in determining the top oil producing countries in the world was based on crude oil production from January 2022 through December 2022 from data posted on Trading Economics and on Yahoo News. This list is based on crude oil production only and the production figures do not include other petroleum liquids.
The United States was the top oil producing country in the world in 2022, with daily production of approximately 11.9 million barrels per day (bpd). The U.S. Energy Information Administration (EIA) estimates that U.S. oil production in 2023 will increase to 12.4 million barrels per day and increase even further in 2024 to 12.8 million b/d. If these predictions are accurate, oil production in the U.S. would exceed pre-pandemic production levels as well as the previous U.S. oil production record set in 2019 of 12.3 million b/d. The United States is predicted to continue to be the largest oil producer in the world in the coming years.
U.S. oil production has continued to increase in recent years, largely attributed to the development of shale oil and gas resources, and the implementation of new technologies. The majority of oil production in the United States comes from the states of Texas, North Dakota, and New Mexico. The top production areas in these states are the Permian Basin (TX & NM), Eagle Ford Shale (TX), and the Bakken Shale (ND) regions.
Russia was the second-largest oil producer in the world, with crude oil production of approximately 10.75 million bpd in 2022. The country of Russia has vast oil reserves, and its oil industry plays a crucial role in the country’s economy. Most of Russia’s oil production comes from its western Siberian region.
Russia’s oil production has been affected by various factors in recent years, including fluctuations in global oil prices, economic sanctions imposed by the US and EU, the sabotaged Nord Stream pipeline, and the COVID-19 pandemic. However, despite these challenges, Russia has continued to produce large volumes of oil and was the number two producer of crude oil in the world in 2022.
Saudi Arabia was the third-largest oil producer in the world, with production of approximately 10.59 million bpd in 2022. The country of Saudi Arabia has the second-largest proven oil reserves in the world and is a founding member of the Organization of the Petroleum Exporting Countries (OPEC), which is a group of countries that work together to influence the global oil market.
The oil industry in Saudi Arabia is dominated by the now public company Saudi Aramco, the largest oil company in the world. In 2020, Saudi Aramco raised its initial IPO of $25.6 billion to a record $29.4 billion by exercising its “greenshoe option” to sell an additional 450 million shares of stock. This resulted in the largest IPO in world history.
Iraq was the fourth-largest oil producer in the world, with production of approximately 4.48 million bpd in 2022. The small country of Iraq has the fifth-largest proven oil reserves in the world at approximately 145 billion barrels. Interestingly, the majority of Iraq’s known oil fields are undeveloped.
According to the IMF, crude oil exports account for an estimated 92% of revenue taken in by the government of Iraq. Iraq’s oil revenue in 2021 was estimated to be $75 billion.
The country of China was the fifth-largest oil producer in the world, with production of approximately 4.1 million bpd in 2022. China has been increasing its oil production in recent years, primarily to reduce its dependence on oil imports. China’s oil production comes from its oil fields in the northeast region of the country and in the South China Sea.
While China was the fifth-largest oil producer of crude oil in 2022, China is predicted to import 10.8 million barrels per day in 2023, making China one of the top oil importers in the world. According to Investopedia, the Chinese company China Petroleum & Chemical Corp. (SNPMF) is the second largest oil company in the world with a trailing 12-month (TTM) revenue of $486.8 billion.
Canada was the sixth-largest oil producer in the world, with production of approximately 4.076 million bpd in 2022. Canada’s oil production comes primarily from the oil sands in the province of Alberta. Canada exports a significant portion of its oil to the United States, with the US importing approximately 3.8 million barrels per day of crude oil from its neighbor to the north in 2021.
The United Arab Emirates (UAE) was the seventh-largest oil producer in the world, with production of approximately 3.064 million bpd in 2022. The UAE has significant oil reserves, and its oil industry is a crucial source of revenue for the government. Most of the oil production in the UAE comes from the Abu Dhabi Emirate. The proven oil reserves of the UAE was estimated to be 100 billion barrels in 2022 with approximately 96% of those reserves located in Abu Dhabi.
Brazil was the eighth-largest oil producer in the world, with production of approximately 3.0217 million bpd in 2022. The country of Brazil has significant offshore oil reserves, with most of its crude production coming from the pre-salt fields located in the Santos Basin of the South Atlantic Ocean.
“Ultra-deep” drilling is considered to be wells developed in waters at a depth greater than 5,000 feet, however the offshore crude wells of Brazil are often drilled in waters in excess of 7,000 feet. The total depth of an offshore well in Brazil can reach 17,000 feet below the surface of the South Atlantic Ocean.
It is worth noting that the global oil market is constantly changing, and the production levels of these countries can fluctuate based on a range of factors. Changes in market demand, geopolitical tensions, and weather conditions can all impact production levels. Additionally, the COVID-19 pandemic had a significant impact on global oil demand and production levels. Despite all the challenges encountered by the global oil industry in recent years, its resilience and ingenuity has helped it to overcome the obstacles and continue to be one of the dominant factors in the global economy.