The oil markets are fluctuating with every piece of news coming from the countries that produce most of what the world consumes nowadays, so we thought it would be nice to look into the 10 countries most reliant on oil.
This is an important topic and one that should be taken into consideration every time we discuss the future of the world we live in and how we will manage the consumption of oil products in the future, the way we decide to fuel our cars, the way we decide to heat up our homes and so on.
As everyone knows, the oil we use to make our cars go where we want them to is produced from fossil fuels which are then refined into petroleum products. These are then used to propel vehicles, as mentioned just now, but also to heat buildings and produce electricity. In fact, while some countries are pushing towards a greener way to create the energy they need, the reality is that we’re still quite reliant on oil for our daily needs. This is quite sad, in the long run, since there’s understanding in the scientific community that these fossil fuels are going to end one day and then we’ll be forced to face the consequences as we scramble to make better use of renewable energy sources, like light, wind and water. For instance, these are 10 countries that are already running out of oil and more are sure to follow as the oil fields reach maturity.
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While it’s true that this future is still a bit away, it’s not that far away that we can be comfortable in the situation we’ve created over the past century.
For our list today, we took a look at several clusters of data. The World Economic Forum shared a chart regarding the fuel exports as percentage of merchandise exports in 2013 for over 20 countries, while the World Bank provided data regarding how much of the GDP the oil rents (difference between the value of crude oil production at world prices and total costs of production) were in 2014 for a number of countries.
Then, there’s also a study made by Bloomberg, which was cited by a Statista infographic, based on data from previous years and current evolution about how much the oil exports in a number of countries were going to weight as part of the country’s total GDP for 2018. We may not have the countries that gave us the likes of Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM), BP plc (ADR) (NYSE:BP), or Sinopec Shanghai Petrochemical Co. (ADR) (NYSE:SHI), but these are massive producers and highly reliant on oil exports for the well-being of their economies.
We compiled all this data, offered points for each nation, depending on their position on the chart (the higher up, the more points) and added them all up for the final scores, resulting in a list of 10 countries most reliant on oil. Without further ado, here they are.
10. Oman
Total score – 27
Back in 2014, the World Bank states that the oil rents were 28% of the country’s GDP, down from nearly half back in the 1970s. This, as you will see from here on out, is a difference that you’ll notice in few countries, since for most of the nations on our list, the importance of the oil rents have risen in the past decades, not dropped.
At the same time, back in 2013, Oman’s fuel exports were 82.5% of the country’s merchandise exports, making oil a rather important part of the country’s economy. In fact, oil production and refining, alongside natural and liquefied natural gas production are the two main industries in the country, followed by construction. Its main export partners are China, Japan and the United Arab Emirates, although the numbers may vary.
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9. Kazakhstan
Total score – 31
Data from the World Bank puts Kazakhstan’s oil rents in 2014 at 21% of the nation’s GDP, which is a considerable portion. At the same time, according to a Statista infographic citing Bloomberg data, by 2018 the country’s oil exports will weigh about 18.9% of the GDP.
Furthermore, fuel exports in 2013 were 76.2% from overall merchandise exports, which further helps to paint the picture as to how important oil is to the country’s economy.
Kazakhstan has an estimated oil reserve of 30 billion barrels, whch ia why it’s on our list of countries most reliant on oil. Production was said to reach 1.5 million barrels per day at its peak in 2016. Even so, the country has started looking into renewable energy sources in the past few years, adopting an action plan to develop greener sources by 2020. In the first half of 2016, Kazakhstan increased the installed capacity of green energy facilities by 1.4 times compared to the same period of the previous year, up to 251.55 megawatts.
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8. Congo
Total score – 31
By 2018, Congo’s oil exports will rise up to 42.2% of the country’s GDP, Bloomberg’s study states, the fourth on their list. The World Bank also noted that in 2014, Congo had the second highest oil rents as percentage of GDP, sitting at 45.2% of the country’s GDP.
For the past four decades, Congo has been a significantly powerful player in the oil industry, spiking to new heights back in the 90s, only to decline in latter years as the oil fields reached maturity. For the past decade, however, the oil production has started to increase once more as new projects have begun.
Congo has other sources of energy apart from oil, including hidroenergy, with one of its dams being powerful enough to power up all of Africa if properly harvested to its full potential.
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7. Azerbaijan
Total score – 31
Azerbaijan’s oil rents amount to over 27% of the country’s GDP, the World Bank reports, referring to 2014. At the same time, the country’s fuel exports amounted to 93% of the total merchandise exports in 2013, so it’s pretty safe to say that the oil industry is particularly important for this nation.
The petroleum industry in Azerbaijan is quite active, producing over 870,000 barrels of oil per day, making it one of the most active in the world. This is one nation that has its history linked to oil, with its most recent chapter going back as far as 1871 when the first wood oil derrick was built.
SOCAR, the state-owned oil company is one of the most successful in the world, reporting a total revenue of nearly $40 billion in 2015. Sure, it’s well below other industry giants, but it’s doing just fine. SOCAR, coming from Azerbaijan is one of the largest oil companies in the world.
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6. Algeria
Total score – 37
Up next on our list of countries most reliant on oil is Algeria, a country where the 2014 oil rents were 18.1% of the total GDP. Further more, the fuel exports in 2013 were 96.7% of the total merchandise exports, leaving room for little else to exit the country. Bloomberg also estimates that Algeria’s oil exports in 2018 will reach 25.3% of the country’s GDP.
OPEC notes that Algeria’s crude oil productions passes the 1.1 million barrels per day mark, while the refinery capacity sits at over 650,000 barrels per day. Sonatrach is one of the largest oil companies in the world.
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5. Brunei
Total score – 41
Brunei may be a small country, but it’s a tough player in the oil industry. The World Economic Forum put its fuel exports at 96.5% of the entire merchandise exports in 2013, while the World Bank notes that the oil rents in 2014 reached 18% of the country’s GDP. Estimates from Bloomberg’s study, however, put Brunei at the top of the list of countries that are most dependent on oil with oil exports weighing as much as 60.3% of the country’s GDP in 2018.
While the country’s economy is much more diverse, it seems that exports of crude oil and natural gas are at the base.
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4. Saudi Arabia
Total score – 42
Up next on our list of countries most reliant on oil we have Saudi Arabia, one of the best known members in our list. According to the World Economic Forum, in 2013, fuel exports amounted to 87.4% of the total merchandise exports in this nation. The World Bank also noted that in 2014 oil rents were 38.7% of the country’s GDP. Oil is only going to be more important for the country, especially since Bloomberg estimates that in 2018 oil exports will be 32% of the GDP.
Member of OPEC, Saudi Arabia’s crude oil production sits at over 10 million barrels per day, while the refinery capacity is at nearly 3 million barrels per calendar day. Saudi Aramco is one of the largest companies in the world
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3. Iraq
Total score – 42
Iraq is next on our list of countries most reliant on oil, with an extremely high dependency on oil. In 2013, the World Economic Forum estimated the country’s fuel exports at 99.8% of all merchandise exports. Similarly, oil rents for 2014 amounted to 41.4% of Iraq’s GDP.
Member of OPEC, Iraq has crude oil reserves that amount to over 142 billion barrels. Its production is of 3.5 million barrels per day, while the refinery capacity doesn’t reach a million barrels per day.
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2. Libya
Total score – 51
On the second spot on our list of countries most reliant on oil, we have Libya, a country whose fuel exports in 2010 amounted to 97.7% of the total merchandise exports and whose oil rents reached 33.3% of the country’s GDP in 2014. There are also estimates from Bloomberg that indicate Libya’s oil exports in 2018 will reach 43.8% of the GDP.
OPEC data shows Libya has proven crude oil reserves of over 48 billion barrels. Its crude oil production reaches 403,000 barrels per day, while the refinery capacity reaches 380,000 barrels per day, making for a rather balanced operation.
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1. Kuwait
Total score – 54
Finally, at the top of our list of countries most reliant on oil we find Kuwait. Data from the World Economic Forum indicate the fuel exports in 2013 amounted to 94.2% of all merchandise exports, while the oil rents of 2014 were the highest – 53% of the country’s GDP. Bloomberg paints an even more oil-dependent future for Kuwait, with oil exports rising to 46.5% of GDP in 2018.
The country’s proven crude oil reserves reach 101 billion barrels, while the crude oil production sits at over 2.8 million barrels per day. The refinery capacity, however, only reaches 936,000 barrels per calendar day. Kuwait Petroleum Corporation (KPC) is one of the largest oil companies in the world. Bloomberg reports that Royal Dutch Shell Plc and BP Plc have signed agreements with Kuwait to work on oil deposits in order for the country to reach its goal of an output of 4 million barrels a day by 2020.
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That being said, these have been the 10 countries most reliant on oil.
