The jasmine revolution in Arab nations have sent the price of oil to the level of over $110 a barrel. Most of the worl’d requirement of crude oil is fulfilled by these nations. A list of the top 5 oil producing countries in 2011 is given below. These statistics are compiled by the U.S. Energy Information Administration.
Petroleum is found in upper parts of the earth’s crust including porous rock formations. Oil prices are driven by a normal supply and demand dynamic. If the supply of oil is disrupted, prices will rise. However, some have commented that current price rise may be an overreaction, since Libya produces only about 2% of the world’s oil per day. While that is not an insignificant amount, other large oil producing countries could potentially step up production to fill that supply gap.
Russia is the single largest oil producing country in the world, with a production of about 10,124,000 barrels per day. This represents just under 12% of the world supply of oil. Russia has about 60 billion barrels of proven oil reserves, or about 5% of the world total oil reserves.
2. Saudi Arabia
Saudi Arabia produces only very slightly less than Russia with approximately 10.121 million barrels per day – 12% of the total world production of oil. Saudi Arabia has the world’s largest proven reserves of oil, with approximately 265 billion barrels, or about 20% of the world’s proved oil reserves. This allows Saudi Arabia to increase and decrease its level of oil production depending on market conditions. Saudi Arabia was the largest oil producer as recently as 2008.
3. The United States
Many may not realize that the United States is such a large oil producer. The United States produces about 9.6 million barrels per day. This represents 11% of the world oil supply. However, the United States does not have overly large proven oil reserves. Most known reserves are already being tapped for current production needs. The United States only has about 19.1 billion barrels of proven reserves, representing only about 1 to 2% of the world’s proven oil reserves. (Before jumping into this hot sector, learn how these companies make their money. See Oil And Gas Industry Primer.)
China is the world’s fourth-largest oil producer, supplying about 4.27 million barrels per day, and about 5% of the world oil supply. Like the United States, China does not have extradordinarily large oil reserves, only about 20.3 billion barrels. Much like the United States, this is a very small fraction of the world’s oil reserves – particularly relative to the amount of production.
Iran produces about 4.25 million barrels of oil per day, for about 4.9% of the world oil supply. Iran is regarded as a major player in the world oil market because it has a very large reserve of proven oil. Its proven reserves are approximately 137 billion barrels, or 10% of the world’s proven oil reserves.