Oil is a priceless natural resource that powers economies and influences geopolitics around the world. As the global demand for energy grows, oil extraction and shipping are crucial to the security and development of virtually every nation in the world today.
Oil is a significant and adaptable substance that can be used in a variety of ways. Globally, the major user of oil is the transportation industry with more than a third of the world’s oil demand arising from this sector.
With this in mind, it is logical to assume that the largest oil-producing countries are rich and prosperous. But is that really the case? At least four of the 10 biggest oil producers are still developing countries, which are still struggling with high poverty levels and negative environmental impacts of oil extraction.
At the same time, burning oil represents one of the major pollution sources, accounting for 12.21 million tonnes of CO2 emissions in 2023. The ecosystem is poisoned by petroleum extraction procedures and byproducts. Leaks could result from underwater drilling, and the water table could be impacted by fracking.
And yet, millions of vehicles, airplanes, vessels, and other means of transport that are used in international development depend on the oil industry. In fact, more than a third of the world’s oil demand comes from the transportation industry.
Source: OurWorldinData
Although efforts to decarbonize oil-dependent industries like transportation are underway, it is still difficult to replace petroleum fuels in sectors such as aviation where alternatives like electric energy simply cannot match the power density of petroleum fuels.
Oil is a significant and adaptable substance that can be used in a variety of ways. It provides consumers all across the world with plastics, heat, light, and transport. Although it is a non-renewable energy source with a finite supply, it is quite simple to extract. Petroleum-based fuels are also easy to transport and have a high power ratio.
Global oil production statistics
- In 2024, worldwide demand for energy increased by 2.2%, which was more than the average growth rate over the previous 10 years. The major driver of this increase was the 4.3% rise in power demand due to increased rates of electrification and digitalization, and extreme temperatures.Most of the increase in the world’s energy supply came from renewable energy (38%), followed by natural gas (28%), coal (15%), oil (11%) and nuclear (8%).
- In 2025, global oil demand is expected to accelerate to just over 1 million barrels per day, up from 830,000 barrels per day in 2024, reaching a total of 103.9 million barrels, according to the International Energy Agency.
- Almost 60% of this increase will come from Asia, with China being at the forefront.
The U.S. Energy Information Administration (EIA) predicts that global oil markets will remain relatively tight across the middle of 2025 before progressively moving to increases in oil stocks later in the year.
The impact of oil production on developing countries
The energy demands of many developing countries are largely satisfied by oil imports with these nations frequently relying on the top oil-producing nations to satisfy their energy needs.
Moreover, oil price fluctuations can have a direct effect on the economics of emerging nations, being able to reduce foreign direct investment (FDI). Investments in oil-related initiatives can be deterred by market uncertainty thus limiting the opportunity for economic growth and development. In addition, fluctuating oil prices can lead to increased income inequality in developing nations.
The foreign aid provided by major oil-producing countries aims to reduce poverty, improve healthcare, advance education, and promote sustainable development in developing nations. This aid can take many different forms, including grants, loans, or capacity-building programs.
For instance, one of the top 10 major oil producers, the UAE, covers programs in the fields of healthcare, education, sustainable energy, and water security through its Mohammed bin Rashid Al Maktoum Global Initiatives. The UAE has also been crucial in aiding refugees and people who have been forcibly displaced by offering aid and assistance.
Top 10 biggest oil producers
The United States has become the leading global oil producer in the modern oil environment, holding the top spot followed by Saudi Arabia and Russia. Iran, Kuwait, and Iraq all rank highly in the top 10 oil-producing countries. Notably, in these three nations the presence of numerous supergiant oil fields, which are part of the Arabian-Iranian basin, further strengthens their position in the world oil market. Other large oil-producing countries include China, Canada and Brazil.
However, it is important not to be confused by the status of oil producer and oil exporter because, in the case of some producers, they are not the biggest exporters of oil.
Let’s dive deeper into the list of the largest oil-producing nations.
A record-breaking increase in oil production is expected from the United States, Brazil, Guyana, and Canada. This rise is predicted to boost the world’s oil supply by 1.5 million barrels per day (mb/d), reaching a new peak of 103.5 mb/d. According to the International Energy Agency (IEA), the primary driver of this growth in 2024 will be the 1.5 mb/d produced by countries that are not members of the Organization of the Petroleum Exporting Countries (OPEC).
The U.S. Energy Information Administration (EIA) forecasts that the global output of liquid fuels will experience a rise of 0.6 mb/d in 2024, a figure notably lower than the 1.7 mb/d increase recorded in 2023. This deceleration in global liquid fuel production is attributed to slower non-OPEC growth coupled with production cuts implemented by OPEC+ which represents the OPEC countries and another 10 petroleum producing and exporting countries.
For 2024, the EIA predicts a decrease in OPEC+ crude oil production by 0.6 mb/d which will be compensated for by an output surge of 1.2 million b/d from countries outside the group. The predicted growth levels are lower compared to the previous year, largely due to diminishing supply growth from the United States, Canada, and Brazil.
Oil production by country in 2023
Now let’s explore the Top-10 largest oil producers in the world.
Source: EIA
*The term ‘oil’ includes crude oil, biofuels, as well as other petroleum liquids.
*Production includes domestic production of oil and refinery processing gain.
The United States of America
With regard to oil production, the U.S. has held the top spot since 2018.
The U.S. has seen a growth in oil production thanks to technological developments such as hydraulic fracturing and horizontal drilling. This growth has improved the country’s energy security, boosted the economy, and altered the dynamics of the world oil market.
The latest data from EIA shows that the United States has registered a production of 21. 91 million barrels of crude oil per day, which represents around 22% of global production.
The top three biggest crude oil reserves are located in the states of Texas and North Dakota and the Federal Offshore.
Oil production by U.S. state (and offshore)
Source: EIA
Saudi Arabia
Saudi Arabia’s role in the world energy sector is determined by the fact that it boasts the second-largest proven oil reserves on a global scale.
Moreover, the nation is home to approximately 17% of the world’s proven petroleum reserves, the second-largest held, after Venezuela.
The EIA’s latest data shows that the country registered a production of 11.13 million barrels per day. According to the agency, Saudi Arabia accounts for over one-third of the total oil supply of the Organization of Petroleum Exporting Countries (OPEC).
The discovery of the Al-Ghawar field propelled Saudi Arabia to prominence as an oil producer. It alone enables Saudi Arabia to generate about 5.5 billion b/d.
In early 2025, eight members of OPEC+ decided to increase crude oil production in Q2, after a voluntary decrease of 2.2 million barrels per day in output which was maintained during 2024 with the aim of stabilizing the market and sustaining prices. Over the course of 18 months, from April 2025 to September 2026, Saudi Arabia, Russia, Iraq, Kuwait, the United Arab Emirates, Algeria, Kazakhstan, and Oman have decided to begin to remove their voluntary output cuts.
It has been estimated that in 2024 Saudi Arabia registered an output of 9.0 million b/d, a 13% (or 1.4 million b/d) which represents a decrease compared to 2022, prior to the group’s announcement regarding the extension of its voluntary cuts in production.
Russia
With an average of 10.75 million barrels per day, Russia is the third biggest producer of oil in the world and second among the OPEC+ countries.
It is believed that Russia has the greatest potential for new findings. Rich oil deposits, particularly in areas like Western Siberia, help to explain its extraordinary production levels. Modern drilling and extraction procedures used by Russian oil corporations allow them to efficiently access these huge deposits.
Despite the Western sanctions imposed on Russia after Vladimir Putin unleashed a full-scale invasion of neighboring Ukraine, the country’s oil exports have recovered to the levels seen before its invasion of Ukraine. To replace European consumers, it has apparently discovered buyers in China and India.
Data presented by the International Energy Agency (IEA) shows that the overall amount of Russian oil exports has not been significantly impacted by the European Union’s ban on the import, movement, and sales of Russian crude oil at the end of 2022.
This is because several other nations have filled the void, with China and India leading the way with increases in imports of 26% and 111%, respectively.
Turkey and several Latin American and African nations have also increased their imports of Russian oil.
Final word
Due to their massive oil reserves and impressive production capabilities, the major oil-producing countries have a considerable impact on international development. Oil is essential to support economic expansion, sustain industry, and supply the world’s energy needs. A reliance on oil exports, however, also brings difficulties such as environmental concerns and economic volatility linked to changes in oil prices. Oil-related income can either support development and diversification or sustain inequality and political unrest.
