In this article, we are going to discuss the 15 countries with the largest proven oil reserves in the world. You can skip our detailed analysis of the global oil and gas market, the impact of the Russia-Ukraine war on the global oil sector, and the steps taken by major oil companies to achieve net zero by 2050, and go directly to the 5 Countries with the Largest Proven Oil Reserves in the World.
In the latter half of the 20th century, the global oil market was dominated by a group of multinational, Anglo-American companies known as the ‘Seven Sisters’. And so in hopes of exerting more authority over their own resources, the petroleum-rich nations of Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela banded together and created the OPEC (Organization of the Petroleum Exporting Countries) at the Baghdad Conference in 1960. These countries realized they had a non-renewable resource, and if they competed against each other, the price of oil would drop too far, eventually causing them to run out of their precious but finite commodity even sooner.
Currently, OPEC comprises 12 members, and it is estimated that approximately 80% of the world’s proven crude oil reserves are located in its member countries, giving the organization significant influence over the global energy landscape.
Global Oil and Gas Market:
As we mentioned in our article – Oil and Gas Production by State: Top 15 – the global oil and gas market was valued at $6.99 trillion in 2022, and is expected to grow to $8.67 trillion by 2027, with a CAGR of 4.4% during the forecast period. The largest region in the global oil and gas market share is Asia Pacific, with North America coming in second.
The primary factors driving the growth of the industry include the rising demand for oil and gas, growing competition in the industry, financial capital, and public scrutiny. Furthermore, the rising oil and gas exploration activities and the increase in prices globally are also anticipated to drive the industry's growth.
Impact of the Russia-Ukraine War:
Following President Putin’s invasion of Ukraine, Western policymakers promised to respond to the Kremlin with ‘sanctions from hell’. Yet, the so-called hell is yet to be seen.
In December 2022, the United States, along with the E.U., the G7, and Australia imposed a $60 per barrel limit on what Russia could charge for its oil. The cap was designed to deprive the Putin administration of revenue to fund its aggression in Ukraine, forcing it to either sell its oil at a discount or find a costly alternative shipping network.
Although the initial blow from the sanctions led to a $25 billion deficit in the Russian budget at the beginning of last year, the effects have faded dramatically, as the Kremlin has subsequently learnt to better circumvent those sanctions by pivoting away from western shipping and services. It has done so by using a vast shadow fleet of tankers that have unclear ownership and insurance status, and so the $60 price cap is not always respected. As a result of that, combined with a favorable price dynamic, the Russian state’s energy revenues more than doubled to $17.63 billion from September to October last year.
One of the biggest players to have made the most of this situation is China. The East Asian behemoth imported record volumes of oil last year despite a weak economy, as it took advantage of cheap Russian crude to build stockpiles and export refined products. In the first half of 2023, China imported 2.13 million barrels per day (b/d) of oil from Russia, ahead of 1.88 million b/d from Saudi Arabia, making Russia the top crude supplier to China during the period. To avoid violating Western sanctions, Chinese refiners use intermediary traders to handle shipping and insurance of Russian crude.
Another country that has taken full advantage of the cheaper Russian black gold is India. In the 2022-23 financial year, the South Asian giant’s imports of crude oil from Russia increased nearly 13-fold, from less than $2.5 billion in 2021-22 to over $31 billion last year.
This goes to show how the war in Europe has implications that go far beyond the battlefield, thus creating new geopolitical alliances and leading to one of the largest shifts in the global energy market in decades.
Oil Majors Going Green:
As climate catastrophes continue to escalate, the urgency to reach net zero emissions is becoming more critical than ever. As a result, following the roadmap of the International Energy Agency, a growing number of oil and gas companies have committed to achieving net zero by 2050.
Among these key players is also The Exxon Mobil Corporation (NYSE:XOM) – the largest oil producer in the U.S. – which in 2022 announced its goal to cut greenhouse gas emissions at its oil and gas operations to net zero by 2050, as it responds to investor pressure to clean up its business in the face of climate change. The oil giant said that it would eliminate the routine flaring of natural gas and methane leaks from its facilities and use renewables to power operations. Moreover, the Texas-based company is also investing $17 billion over a six-year span through 2027 in lower carbon emissions technologies such as carbon capture and sequestration, and hydrogen.
In fact, The Exxon Mobil Corporation (NYSE:XOM) has already taken significant steps to minimize its carbon footprint over the last few years, including evaluating the potential impact of its emissions to the communities where it operates. From 2016 to 2021, the total reportable emissions of volatile organic compounds, sulfur oxides, and nitrogen oxides decreased by approximately 24% at operated assets. The company also recycled nearly 100 million barrels of water in 2021, which enabled it to offset almost half of its water needs for fracking operations.
Similarly, in 2021, the Chevron Corporation (NYSE:CVX) also set the ambitious target to cut operational emissions to net zero by 2050, and has already implemented various measures to reduce its carbon emissions, including investing in blue and green hydrogen, carbon capture and sequestration, offsets, geothermal and nuclear energy, and restoring coastal and marine habitats to ensure they continue to draw CO2 from the air. The company has pledged to invest $10 billion by 2028 to reduce its carbon footprint.
Chevron Corporation (NYSE:CVX) believes that implementing a global carbon pricing system is the key incentive for driving low-carbon investments and scaling up energy transition technologies. The idea of taxing carbon emissions through a ‘cap-and-trade’ system is widely supported in some major markets like Europe and the U.K., but remains a political controversy in others, notably the United States. Chevron’s commitment to utilizing existing and emerging energy solutions and services demonstrates its dedication to mitigating greenhouse gas emissions and contributing to a more sustainable future.
With that said, here are the Countries with the Largest Oil Reserves in 2024.
15 Countries with the Largest Proven Oil Reserves in the World
An oil rig in a vast desert landscape, a reminder of the company's core business.
Methodology:
To collect data for this article, we have referred to OPEC, looking for Countries with the Largest Crude Oil Reserves. The following countries have been ranked by their proven reserves of crude oil in 2022.
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15. Algeria
Total Proven Oil Reserves in 2022: 12.2 billion barrels
Algeria imports very little energy as its domestic consumption is met by its own oil and natural gas production, which is heavily subsidized. Oil production accounts for nearly all of the North African country’s export economy, with 60% of Algeria’s entire production going towards exports.
Algeria’s entire oil reserves are found onshore and almost 80% of the country’s hydrocarbon production is done by Sonatrach – the national oil company.
14. Brazil
Total Proven Oil Reserves in 2022: 13.242 billion barrels
Brazil owns the largest recoverable ultra-deep oil reserves in the world, with 97.6% of its oil produced offshore. Although it is the Biggest Oil Producer in Latin America, the country continues to import petroleum products to meet the rising domestic demand and to compensate for its fuel price subsidies.
Brazil’s state-controlled oil giant Petrobras also has to compete with importers and its next five-year strategic plan will focus on making the country self-sufficient in gasoline and diesel production.
13. Qatar
Total Proven Oil Reserves in 2022: 25.244 billion barrels
Qatar, one of OPEC’s longest-standing members, left the organization in January 2019 to shift more of its resources and investment from oil production to natural gas and LNG infrastructure projects. According to the U.S. Energy Information Administration, Qatar’s earnings from its hydrocarbon sector accounted for 81% of the country’s total government revenues in 2021, up from 77% in 2020.
Total Proven Oil Reserves in 2022: 27.003 billion barrels
China made headlines last month after the country’s state-owned oil and gas giant, China National Offshore Oil Company, made a massive deep-water oil discovery in the Kaiping South oilfield in the South China Sea, containing over 100 million tons of oil equivalent proved in-place.
Despite its huge oil reserves, China was the Biggest Buyer of Saudi Oil in 2022, purchasing 87.49 million tonnes of crude during the year, equivalent to 1.75 million barrels per day. Due to its high domestic demand, China tops the list of Countries that Import the Most Oil in the World.
11. Kazakhstan
Total Proven Oil Reserves in 2022: 30 billion barrels
Kazakhstan has the largest proven oil reserves in the Caspian Sea region, and the country’s crude and condensate output in 2021 was around 1.8 million barrels per day. While Kazakhstan already has significant reserves, it is estimated that around 60-100 billion barrels still remain undiscovered in the region, mostly in the Kazakh part of the Caspian Sea.
Chevron Corporation (NYSE:CVX) is the largest private oil producer in Kazakhstan, holding important stakes in two of the nation's biggest oil-producing fields – Tengiz and Karachaganak.
10. Nigeria
Total Proven Oil Reserves in 2022: 36.967 billion barrels
To strengthen Nigeria’s energy security, the Nigerian National Petroleum Company has started exploration in the onshore frontier basins, aiming to boost the country’s proven crude oil reserves to 50 billion barrels from the current approximate 37 billion.
It was announced in January that Africa’s largest oil refinery has finally started production in Nigeria. In a nation that largely relies on imports for refined petroleum, the $19 billion facility comes as a boon and has the capacity to produce 650,000 barrels per day.
9. Libya
Total Proven Oil Reserves in 2022: 48.363 billion barrels
Libya is the Country with the Largest Oil Reserves in Africa, representing 39% of the continent’s total reserves. However, the country’s oil output has continuously fluctuated over the last decade due to its armed internal conflicts and political instability.
Libya also ranks among the Countries with the Cheapest Gas Prices in the world. The gas price is determined by the National Oil Corporation and is heavily subsidized by the government. The price of Libyan gasoline is, in fact, even cheaper than water.
8. United States of America
Total Proven Oil Reserves in 2022: 55.251 billion barrels
The U.S. is the Largest Producer of Oil in the World, accounting for 14.7% of the overall world crude production in 2022. Every year, the indigenous production of oil and gas helps save American consumers an estimated $203 billion, or $2,500 for each family of four. Moreover, the oil and gas industry also supports over 12 million American jobs, provides billions of dollars in tax revenue, and ensures energy security. With over 18.6 billion barrels of crude oil reserves, Texas is the State with the Largest Oil Reserves in America.
Thanks to its shale oil boom, the U.S. is counted among the Countries with the Most Untapped Oil Reserves in the World.
7. Russia
Total Proven Oil Reserves in 2022: 80 billion barrels
Although Russia ranks among the Top 10 Countries with the Biggest Oil Reserves, its oil industry has recently been facing a number of problems, including sanctions from the West for its invasion of Ukraine, reduction in output from brownfields in Western Siberia, rising costs, and the high carbon intensity of the country’s oil production.
6. Kuwait
Total Proven Oil Reserves in 2022: 101.5 billion barrels
Kuwait is a major oil producer and a member of the OPEC consortium. The oil industry accounts for nearly half of the country’s GDP and around 95% of its exports revenue. Kuwait wants to increase its oil production capacity to 4 million b/d by 2035, and is thus planning to prepare the infrastructure for the Durra gas field, which it shares with Saudi Arabia and Iran claims a stake in.
Kuwait holds approximately 7% of the global oil reserves, and ranks 6th in our list of Countries with the Largest Oil Deposits in the World.
