Top 5 oil producing countries in the world

1. United States

Production: 17,886,000 bpd

Number one on this list of the top 10 oil-producing countries is the US. It produced the most oil in 2018, with output increasing from 15,647,000 bpd in 2017 to 17,886,000 bpd in 2018.

The US has been described as a swing producer because its production fluctuates alongside market prices. The International Energy Agency forecasts that the country will continue to satiate the world’s appetite for oil as demand expands in the next five years.

In addition to being a major oil producer, the US is a big consumer of oil. Last year, the US took in a total of 7.26 billion barrels of petroleum products — that’s an average of about 19.88 million bpd. US President Donald Trump has criticized OPEC’s cuts, saying they have driven oil prices artificially high. He has also instigated sanctions against both Russia and Iran, and pulled the US out of the Iran nuclear deal.

2. Saudi Arabia

Production: 12,419,000 bpd

Saudi Arabia’s output came in at 12,090,000 bpd in 2017, and climbed to 12,419,000 in 2018. The Middle Eastern country possesses 18 percent of the world’s proven petroleum reserves and ranks as the largest exporter of petroleum. Its oil and gas sector accounts for about 50 percent of its GDP, and about 85 percent of its export earnings.

In 2016, Saudi Arabia played a key role in OPEC’s decision to curb oil output, and as noted, prices have improved since then. However, in 2018, the country increased its output by 1 million bpd, causing prices to dip. Saudi Arabia, alongside the US and Russia, attended this year’s G20 summit in Argentina where global energy supply was a topic.

3. Russia

Production: 11,401,000 bpd

Russian oil output has been increasing steadily over the years, growing from 11,210,000 bpd in 2017 to 11,401,000 bpd last year. Despite coming in third on the list, Russia is the world’s largest producer of crude oil and the second largest producer of dry natural gas, according to the EIA. Most of Russia’s reserves are located in West Siberia, between the Ural Mountains and the Central Siberian Plateau, as well as in the Urals-Volga region, extending into the Caspian Sea.

Some believe Russia will be one of the few nations to benefit from US sanctions on Iran. That’s because if Iran toes the line on sanctions, then its oil customers, which include China, France, Turkey and Italy, could turn to Russia for supply. This would not only give Russia an economic boost, but could improve relations between the countries. However, Iran’s current position is to not abide by the sanctions.

4. Canada

Production: 5,295,000 bpd

Next on this list of the top 10 oil-producing countries is Canada. It boosted its annual oil production to 5,295,000 bpd in 2018, surging past 2017’s output levels of 4,964,000 bpd.

Nearly all of Canada’s proven oil reserves are located in Alberta, and according to the province’s government, 97 percent of oil reserves there are in the form of oil sands. Energy exports to the US account for the vast majority of Canada’s total energy exports. However, because of economic and political considerations, Canada is developing ways to diversify its trading partners, especially by expanding ties with emerging markets in Asia.

Canada has been embroiled in a national debate over pipelines. Last year, the federal government purchased the Kinder Morgan Canada (TSX:KML) Trans Mountain pipeline for C$4.5 billion to ensure Canadian crude reaches market ports. The project is estimated to cost another C$7.4 billion to construct, after which the government says it plans to sell the project back to the private sector.

However, there’s no telling if that will occur, because the federal court found that a previous environmental review is insufficient. Now the pipeline is up for review again, with a new environmental impact study due to be released in 2019.

There has also been a longstanding debate over the Keystone XL pipeline, with Trump even issuing a second executive order in April 2019 to try to fast track the expansion of the pipeline, which runs from Alberta to Nebraska.

5. China

Production: 4,816,000 bpd

China’s annual oil output decreased in 2017, going down to 4,779,000 bpd from 4,863,000 bpd in 2016. While output was up in 2018 at 4,816,000 bpd, it did not exceed 2016 production numbers. China is the world’s second largest consumer of oil and moved from being the second largest net importer of oil to the largest in 2014.

SOURCE: OperaNews