Top 20 Oil Producing Countries in 2022
In this article, we will take a look at the top 20 oil producing countries in 2022. If you want to see more of the world's top oil producing countries, go directly to Top 5 Oil Producing Countries in 2022.
Crude oil is essential to modern day economies.
Given that it is needed to produce gasoline and diesel, crude oil indirectly powers the majority of the world's vehicles. Similarly refined products of crude oil produce many of the world's essential and widely used chemicals.
The EIA explains, "After crude oil is removed from the ground, it is sent to a refinery where different parts of the crude oil are separated into useable petroleum products. These petroleum products include gasoline, distillates such as diesel fuel and heating oil, jet fuel, petrochemical feedstocks, waxes, lubricating oils, and asphalt."
In terms of oil production, OPEC still plays a big role in terms of oil production in 2022 just as it has played a big role in the past few decades. OPEC, which includes 13 nations, produces around 30% of the world's oil while OPEC+ which also includes Russia produces around 40%.
One principal reason for OPEC countries high oil production is that they have most of the world's oil reserves. According to OPEC, 80.4% of the world's proven oil reserves are in OPEC member countries such as Venezuela, Saudi Arabia, Iran, Iraq, United Arab Emirates, Kuwait and more. Collectively OPEC countries have 1,241.82 billion barrels of proven reserves, with much of that in countries in the Middle East.
While OPEC has dominated production, the United States has also increased oil production substantially in the last decade.
Given advances in fracking, the U.S. is producing far more oil than it did before.
According to the EIA, "The U.S. Energy Information Administration (EIA) estimates that in 2021, about 2.64 billion barrels (or about 7.23 million barrels per day) of crude oil were produced directly from tight oil resources in the United States. This was equal to about 64% of total U.S. crude oil production in 2021. Tight oil is oil embedded in low-permeable shale, sandstone, and carbonate rock formations."
As a result, U.S. oil production has increased from around 5 million barrels a day in 2008 to 11.254 million barrels per day in 2021.
Future of Oil Demand
Although oil production has increased from 2020, oil production could also potentially decline if oil demand declines. Given the high inflation in the United States and elsewhere, the Federal Reserve has raised interest rates five times in 2022 alone and the central bank is widely anticipated to raise rates further by the end of the year. With the higher interest rates, many economists predict that the odds of a recession for 2023 are 60% or even higher. If a recession occurs, there could be less demand for oil in 2023 and OPEC may decide to lower oil production as a result.
In terms of the future, the demand for oil might not be as strong as it could be given the increasing adoption of electric vehicles as well.
Nevertheless, in a projection for oil demand for the year 2050, the EIA believes there will be approximately 125 million barrels per day of consumption by 2050 in terms of its reference case. That's higher than the current demand for oil in 2022. Given the changes in technology and consumption, however, it's not clear what the future demand so far out might be.
Photo by David Thielen on Unsplash
For our list, we used the EIA's crude oil including lease condensate production (Mb/d) data for 2021. Since 2022 isn't over yet, we assumed that the top 20 oil production countries this year will be similar to the top 20 oil producing countries in 2021.
For crude oil, we used a more strict definition of crude oil and did not include NGPL and other liquids. If we used a broader definition of crude oil, the oil production of some countries would be higher than what's on this list.
Top 20 Oil Producing Countries in 2022
20. United Kingdom
Crude oil production for 2021: 809,000 barrels per day
Although it produced as much as 3 million barrels per day of petroleum and other liquids in 1999, production in the United Kingdom has dropped substantially in recent decades. As of 2021, the United Kingdom produced 809,000 barrels per day, which ranks it #20 on our list of Top 20 Oil Producing Countries in 2022. To try to reverse the trend and meet demand, the British government is expected to offer new North Sea licenses to allow oil and gas companies to potentially increase production.
Crude oil production for 2021: 971,000 barrels per day
Oman is the largest oil and gas producer in the Middle East that isn't part of OPEC. With around 5.4 billion barrels of estimated proved reserves and crude oil production of 971,000 barrels per day, hydrocarbons make up a substantial portion of Oman's economy and crude oil is also the country's biggest export.
Crude oil production for 2021: 1,127,000 barrels per day
Angola is the second largest crude oil producer in Africa after Nigeria. Given its production of over 1.1 million barrels per day, the crude oil sector accounts for around a third of Angola's GDP. It is the country's number one export as well. Given its production and reserves, Angola is a member of OPEC.
Crude oil production for 2021: 1,134,000 barrels per day
Algeria is OPEC's largest member by land area and a substantial oil producing nation given its crude oil production of 1.134 million barrels per day. With estimated proved crude oil reserves of 12.2 billion barrels, the country has significant hydrocarbon resources and ranks #17 on our list of Top 20 Oil Producing Countries in 2022.
Crude oil production for 2021: 1,238,000 barrels per day
Libya is the seventh largest crude producer in OPEC with oil production of 1.238 million barrels per day. In terms of its reserves, the country has Africa's largest proved reserves with 48 billion barrels. Crude oil production has fluctuated substantially over the past few decades but has recovered closer to its previous levels.
Crude oil production for 2021: 1,304,000 barrels per day
Qatar is one of the most developed nations in the Middle East and a major oil producer with oil production of over 1.3 million barrels per day. In addition to oil, Qatar is the largest exporter of LNG in the world. Given its oil and gas production, the petroleum sector accounts for a big part of Qatar's economy.
Crude oil production for 2021: 1,541,000 barrels per day
Nigeria is the largest oil producer in Africa with oil production of 1.541 million barrels per day. In addition to having the second largest oil reserves in Africa with 37 billion barrels of proved crude reserves, Nigeria also has the largest natural gas reserves in Africa. Given its production, Nigeria ranks #14 on our list of Top 20 Oil Producing Countries in 2022.
Crude oil production for 2021: 1,734,000 barrels per day
Although its oil production has decreased since 2004, Mexico is a major oil producer with crude oil production of 1.734 million barrels per day. In recent years, Mexico's government has tried to open development for new oil fields to reverse the decline in oil production. Mexico is also the second largest exporter of oil to the United States.
Crude oil production for 2021: 1,764,000 barrels per day
Kazakhstan has considerable oil reserves with 30 billion barrels of proved crude oil reserves, which ranks it 12th largest in the world. Kazakhstan is also the 12th largest oil producer in the world with production of 1.764 million barrels per day. Given its reserves and production, Kazakhstan is a big exporter of oil.
Crude oil production for 2021: 1,776,000 barrels per day
Norway is one of the richest countries in the world with a GDP per capita of $89,202.8. A small population of around 5.4 million people, substantial oil reserves, and crude oil production of 1.776 million barrels per day have helped the country achieve a higher income than its fellow Nordic countries Sweden and Finland.
Crude oil production for 2021: 2,527,000 barrels per day
Although it is a small country, Kuwait is a big player in the oil markets with crude oil production of almost 2.53 million barrels per day. Kuwait has an estimated 102 billion barrels of proved oil reserves which is around 6% of the world's total as well. In recent years, Kuwait has increased natural gas investments to diversify its energy production mix.
Crude oil production for 2021: 2,905,000 barrels per day
Brazil is a major oil producing nation with crude oil production of over 2.9 million barrels per day in 2021. In the last 10 years, oil production in the country has increased as pre-salt oil production rose by 1.6 million bpd from 2012 to 2019. According to the EIA, "Increased growth in pre-salt oil field production drives Brazil’s crude oil production over the next decade, and exports of crude oil will likely increase as well."
8. United Arab Emirates
Crude oil production for 2021: 3,091,000 barrels per day
United Arab Emirates is an OPEC member with oil production of almost 3.1 million barrels per day. In addition to being a major oil producer, United Arab Emirates is planning to increase its natural gas production to help meet internal domestic demand. United Arab Emirates has the seventh largest proved reserves of natural gas with 215 trillion cubic feet of natural gas and the seventh largest proved reserves of oil with 98 billion barrels.
Crude oil production for 2021: 3,110,000 barrels per day
Iran is one of the world's largest producers of oil with production of over 3.1 million barrels per day. Given U.S. sanctions, however, Iran isn't producing as much as it could. According to the EIA, the agency, "assesses that Iran’s production could return to full capacity, at 3.8 million barrels per day (b/d), if the United States lifts oil sector sanctions."
Crude oil production for 2021: 3,988,000 barrels per day
Given China's 1.4 billion people and its growing economy, China consumed 15.3 million barrels per day of petroleum and other liquids in 2021, while the country made less than 4 million barrels per day of crude per day in the same year. As a result of the imbalance, China has invested substantial capital to develop oil projects overseas and the country is also a major importer of oil.
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Disclosure: None. Top 20 Oil Producing Countries in 2022 is originally published on Insider Monkey.