Global oil production remains a vital component of the global economy, influencing markets, politics, and environmental concerns. In 2024, the oil market is shaped by various factors, including geopolitical tensions, economic shifts, and changes in global demand. In this article, we will delve into the top 10 oil-producing countries, providing a detailed analysis of their production, reserves, and the impact they have on the world oil market.
1. United States: The World’s Leading Oil Producer
Production in 2023: 21.91 million barrels per day (bpd)
For the sixth consecutive year, the United States is the world’s largest oil producer, with an output of 21.91 million barrels per day in 2023. This includes both crude oil and liquids. Texas is the primary oil-producing state, with production significantly surpassing other states, particularly New Mexico. As the US leads global oil production, it plays a crucial role in determining global oil prices and market dynamics.
The United States has earned the title of a “swing producer,” as its oil production can rise or fall in response to market prices. The US is not only a top producer but also one of the largest consumers of oil. In 2023, the US consumed 20.5 million barrels per day, highlighting its crucial role in global energy demand.
The Energy Information Administration (EIA) forecasts that US crude oil production will average 13.22 million bpd in 2024, with a slight increase to 13.54 million bpd in 2025. Despite the US’s dominance, production is not without challenges, as fluctuating prices and political decisions, such as the ongoing debates over energy policies and environmental regulations, can impact future output.
2. Saudi Arabia: The King of OPEC and Global Petroleum Reserves
Production in 2023: 11.13 million bpd
Saudi Arabia’s oil industry is a dominant force in the global market, producing 11.13 million barrels per day in 2023. It holds approximately 17% of the world’s proven oil reserves, making it a key player in global supply. The country’s vast reserves and export capacity ensure it is a cornerstone of OPEC’s decisions.
Saudi Arabia is particularly influential in shaping OPEC’s output decisions. The nation has frequently used its production levels to stabilize global oil prices. Recently, Saudi Arabia has maintained output cuts in collaboration with other OPEC nations to prevent further drops in oil prices. These cuts have aimed to balance supply and demand amid a complex geopolitical climate, including the war in Ukraine and growing tensions in the Middle East.
The Saudi government faces the dual challenge of diversifying its economy away from oil dependency, as Crown Prince Mohammed bin Salman pushes for ambitious non-oil ventures. However, there are signs that Saudi Arabia might break with OPEC’s consensus and increase production for market share, potentially causing fluctuations in global oil prices.
3. Russia: A Major Producer Despite Geopolitical Challenges
Production in 2023: 10.75 million bpd
Russia ranks third in global oil production, producing 10.75 million barrels per day in 2023. The country’s oil production has been impacted by geopolitical tensions, most notably the war in Ukraine. Despite Western sanctions and the loss of access to European markets, Russia has found new buyers for its oil, particularly in China and India.
Russia’s vast reserves, particularly in Siberia, ensure it remains a major player in global oil markets. However, recent disruptions, including attacks on key refineries and the loss of some Western markets, have affected Russia’s long-term oil production outlook. In 2024, Russia will likely face continued pressure from international sanctions and fluctuating global demand, which could have significant implications for its oil production and exports.
4. Canada: Expanding Production and Export Capacity
Production in 2023: 5.76 million bpd
Canada is the fourth-largest oil producer in the world, with an output of 5.76 million barrels per day in 2023. Most of Canada’s oil reserves are located in Alberta’s oil sands, which account for the vast majority of its production. The country’s proximity to the US makes it a critical supplier for American oil consumption, with Canada providing 60% of US crude imports in 2023.
Canada’s oil production is expected to grow in the coming years, particularly with the completion of significant infrastructure projects, such as the Trans Mountain pipeline expansion. These initiatives aim to diversify Canada’s oil export markets, reducing its reliance on the US and expanding its presence in Asia.
Despite these advancements, Canada’s oil industry faces challenges related to political concerns and environmental issues. The oil sands, in particular, are controversial due to their environmental impact, leading to ongoing debates about sustainability and future oil extraction policies.
5. China: A Growing Producer Amid Declining Output
Production in 2023: 5.26 million bpd
China is the world’s second-largest consumer of oil and the fifth-largest producer, with 5.26 million barrels per day in 2023. Despite this production level, China’s domestic oil output has been on the decline, due to the depletion of older fields and difficulties in developing new reserves.
China is the largest importer of oil globally, relying heavily on OPEC nations like Saudi Arabia, Russia, and Iraq. The country’s oil demand continues to grow, fueled by its expanding economy and industrial needs. However, the declining domestic output suggests that China will increasingly depend on foreign oil sources, impacting global oil trade flows and pricing.
In response to these challenges, China has launched initiatives to improve its oil extraction capabilities, focusing on harder-to-reach reserves and non-conventional sources, such as shale oil.
6. Iraq: A Rising Power in OPEC
Production in 2023: 4.42 million bpd
Iraq remains one of OPEC’s largest producers, with an output of 4.42 million barrels per day in 2023. The country holds the world’s fifth-largest proven oil reserves and continues to expand its oil production capacity. Iraq’s oil is predominantly located in the southern fields, with significant infrastructure improvements underway to boost its export capacity.
However, Iraq’s oil production faces constraints due to aging infrastructure and political instability. These challenges have hindered its ability to fully capitalize on its vast reserves. Despite these obstacles, Iraq is making efforts to increase output, with deals being made to develop new fields in the northern Kirkuk region.
7. Brazil: South America’s Oil Giant
Production in 2023: 4.28 million bpd
Brazil ranks seventh in global oil production, with 4.28 million barrels per day in 2023. The country’s oil industry is expanding, largely due to significant offshore discoveries in the pre-salt fields. Petrobras, Brazil’s state-owned oil company, continues to be the country’s largest producer, focusing on maximizing output from existing fields while seeking new reserves.
Brazil’s oil industry is expected to grow significantly in the coming years, with output projections placing it as the fourth-largest oil producer globally. However, challenges related to political instability and environmental concerns persist, as the country seeks to balance economic growth with sustainable energy practices.
8. United Arab Emirates: Maintaining a Strong Position in OPEC
Production in 2023: 4.16 million bpd
The United Arab Emirates (UAE) is another important OPEC member, with an oil production of 4.16 million barrels per day in 2023. The country’s reserves are primarily located in Abu Dhabi, and it continues to play a significant role in global oil markets. In 2024, the UAE has upped its crude oil output capacity to 4.85 million bpd, with a target of reaching 5 million bpd by 2027.
Despite production cuts in 2023, the UAE is expected to see a 7.8% increase in oil production by 2025. This growth is attributed to the development of new fields and expansion of infrastructure to support higher output levels.
9. Iran: A Country in Recovery Amid Sanctions
Production in 2023: 3.99 million bpd
Iran ranks ninth in oil production, with 3.99 million barrels per day in 2023. The country holds the world’s third-largest proven oil reserves and has faced significant challenges due to US sanctions and political instability. Despite these challenges, Iran’s oil production has seen an uptick, especially with its crude exports reaching a five-year high in May 2024.
Iran is focused on rebuilding its oil sector and diversifying its oil exports, particularly to Asia. However, ongoing geopolitical tensions, especially with the US and regional conflicts, could continue to affect its long-term oil production prospects.
10. Kuwait: A Key OPEC Player with Untapped Potential
Production in 2023: 2.91 million bpd
Kuwait rounds out the top 10 oil-producing countries, with 2.91 million barrels per day in 2023. The country’s oil production has faced setbacks due to political challenges and delays in infrastructure projects. However, Kuwait has vast untapped reserves, which could see a resurgence in output if political stability improves and development projects move forward.
Kuwait’s oil sector remains vital to its economy, accounting for about 50% of GDP and 90% of export revenues. The country is exploring new field development and enhancing its extraction technologies to boost future output.
Conclusion: The Future of Oil Production
The top 10 oil-producing countries in 2024 continue to play a central role in shaping the global oil market. With fluctuating prices, geopolitical tensions, and environmental challenges, these nations will face both opportunities and risks in the years to come. As global demand for oil remains strong, the ability of these countries to adapt to changing market conditions will determine their future position in the global energy landscape.
Investors and policymakers alike must monitor these nations’ production levels and strategic decisions, as they will continue to drive global oil prices and impact the broader economy. The dynamic nature of the oil market ensures that these top producers will remain at the heart of energy discussions for years to come.
