Crude oil is considered the most important commodity with many investors and traders tracking production, demand and prices. The geopolitics of oil have been unpredictable and eventful for decades. It is paramount enough to warrant the CIA dedicating analysts to cover it. A recent example includes two oil-producing giants, Saudi Arabia and Russia, clashing in March this year after failing to reach a pact on the production levels. With current crude oil production at 82.86 million barrels per day (bbl/d), there is definitely a lot of money in play… and at risk for countries whose economies are highly dependent on oil exports.
To understand any market, it is important to know who the major players are. The oil market is no different.
In 2019, the crude oil production was 82.25 million bbl/d. The top producing countries were the United States, Saudi Arabia, and Russia. Note that they are still the top producers in 2020.
Let’s take a look at the top five producers in 2019 contributing 56% of the world’s crude oil production.
United States, The Top Oil-Producing Country
The US is the top oil-producing country in the world, with an average of 12.2 million bbl/d in 2019, which accounted for 15% of the world’s production. The US took the no. 1 spot in crude oil production in 2018, and petroleum and other liquids production in 2012. Much of the increased US production is attributable to fracking in the shale formations in Texas and North Dakota. Since early 2011, the US has been a net exporter of oil. West Texas Intermediate (WTI) is the flagship US grade of crude and WTI prices are followed by investors and traders all over the world as a key barometer of oil prices.
Russia, The Consistent Producer
Russia, the other featured leading actor in this year’s oil drama, has consistently been a top 3 oil producer. Russia contributed 10.8 million bbl/d in 2019, accounting for 13% of the world’s total crude oil production.
Saudi Arabia, The Leader of the OPEC
The Kingdom of Saudi Arabia contributed 9.8 million bbl/d, representing 12% of the world’s total crude oil production. Saudi Arabia is the largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC).
Iraq, Another OPEC Member
Iraq produced 4.7 million bbl/d in 2019, which represented 6% of the world’s total crude oil production. Iraq is also a member of OPEC alongside Saudi Arabia. They are the two OPEC members to make the top 5 list in 2019.
Canada, That Oil Sand Eh?
Canada produced 4.4 million bbl/d, accounting for 5% of global production. The country’s main sources of oil production are the oil sands in Alberta. Oil sands production is one of the costliest ways to extract crude. However, the Canadian producers lowered the costs significantly through technological advancements.
There you have it, the major global powerhouses in the oil market!
