In this article, we are going to discuss the 16 countries with the largest proven oil reserves in the world.
According to the US Energy Information Administration, proven reserves are ‘estimated volumes of hydrocarbon resources that the analysis of geologic and engineering data demonstrates with reasonable certainty, and are recoverable under existing economic and operating conditions’.
Latest estimates by the Organization of the Petroleum Exporting Countries have revealed that the total proven crude oil reserves in the world currently stand at over 1,569.3 billion barrels (excluding oil sands), with 79.1% located in OPEC member countries.
READ ALSO: 15 States with the Largest Oil Reserves in the US and 8 Best Crude Oil Stocks to Buy Right Now.
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. The IEA expects global oil production to ramp up, easing market strains and pushing spare capacity toward levels unseen outside of the Covid crisis.
Global Demand for Oil in 2023:
According to OPEC, the global oil demand increased by 2.5 million barrels per day (mb/d) in 2023 to average 102.2 mb/d, surpassing pre-pandemic levels for the first time. The major part of this uptick came from the non-OECD countries, which posted YoY growth of about 2.4 mb/d to average 56.4 mb/d, surpassing pre-pandemic levels for the second consecutive year.
As per the IEA’s recent market outlook, growth in the global demand for oil is expected to slow down in the coming years as energy transitions advance. However, despite the sluggish growth, the world oil demand is still forecast to be 3.2 mb/d higher in 2030 than in 2023, unless stronger policy measures are implemented or changes in behavior take hold.
Artificial Intelligence in the Oil and Gas Industry:
Major players in the oil and gas sector are looking into big data analytics and AI to enhance decision-making abilities and thus profits. AI will allow these companies to make better drilling and operational decisions, assist them in overcoming their challenges, and position them for long-term success.
Among the companies that have prominently adopted a digital mindset in this industry is the Exxon Mobil Corporation (NYSE:XOM). The Texas-based oil major has collaborated with IBM’s Data Science and AI Elite Team and seismic experts to use AI to interpret and integrate data from siloed systems into one repository, which is hosted on a multi-cloud environment. From Internet of Things (IoT) projects that make its refineries more efficient to state-of-the-art digital tools that help support production and detect methane emissions from its operations, Exxon is leveraging its global scale to turn data into unique insights that drive improved reliability and performance. The company is also enhancing its customers’ experience at the pump by offering mobile apps for payment options, customer loyalty programs, and comprehensive car maintenance experiences. In fact, the Exxon Mobil Corporation (NYSE:XOM) was included in our list of the Most Innovative Companies in the World in 2023.
Exxon Mobil Corporation (NYSE:XOM) is a multinational oil, gas, and chemicals company with an extensive portfolio of products including crude oil, for refining into petroleum derivates; natural gas; refined fuels, like gasoline, diesel, jet fuel, and heating oil; and motor oil and industrial lubricants. With operations in more than 60 countries around the globe, the oil major’s competitive edge stems from its diversified world-class asset portfolio.
In Q3 of 2024, XOM reported revenue of $90.02 billion, surpassing analysts’ estimates by $1.66 billion. The company also achieved an operating cash flow of $17.6 billion, with its free cash flow at $11.3 billion. Over three years, XOM’s stock boasts a remarkable performance compared to its peers and has given more than twice as much shareholder returns as the next big competitor.
In May, Exxon Mobil announced the acquisition of Pioneer Natural Resources in a massive $59.5 billion all-stock deal. The venture seems to be bearing fruit as the company has used it to offset the effect of a 17% decline in average oil prices during the quarter, registering the first impact of the new asset. Moreover, XOM is also among the group of companies that look forward to Donald Trump’s second term, as the President-elect appears friendlier to traditional oil and gas production, which should benefit the American oil drillers and natural gas and oil service providers.
Exxon Mobil Corporation (NYSE:XOM) is also included among the 10 Best American Energy Stocks to Buy According to Hedge Funds.
While we acknowledge the potential of XOM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than XOM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
With that said, here are the Countries that Have the Largest Oil Reserves in the World in 2024.
A rig pumping oil in the midst of a sun-baked desert.
Methodology:
To collect data for this article, we have referred to sources such as OPEC, EIA, CAPP, etc. looking for Countries with the Largest Crude Oil Reserves. The following countries have been ranked by their total proven reserves of crude oil as per the latest official data available.
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16. Algeria
Total Proven Oil Reserves: 12.2 billion barrels
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. There is still much room for bolstering Algeria’s oil economy, as according to Sonatrach, about two-thirds of the African country’s territory remains underdeveloped or unexplored, with an estimated 100 undeveloped discoveries.
15. Brazil
Total Proven Oil Reserves: 15.89 billion barrels
According to the ANP, Brazil witnessed a 6.98% YoY increase in its proven oil reserves in 2023. As the Largest Oil Producer in Latin America, the country extracts around 3.5 million barrels of oil per day, with over 70% going towards domestic consumption.
14. Qatar
Total Proven Oil Reserves: 25.24 billion barrels
Qatar continues to invest in its oil industry and in January, the country’s state-owned petroleum company announced $6.2 billion in contract awards for the third phase of development at its offshore Al-Shaheen oil field. The investment will increase production by about 100,000 barrels per day.
Qatar is also counted among the Countries with the Largest Proven Reserves of Natural Gas in the world, with approximately 871 trillion cubic meters of natural gas.
13. China
Total Proven Oil Reserves: 27.89 billion barrels
As the second-largest oil consumer in the world, China guzzled roughly 16.5 million b/d of the world’s oil supply in 2023, all liquids included. To help meet this massive demand, CNPC announced in July that the country is setting up a new entity that groups national oil producers and other state firms to search for ultra-deep oil and gas reserves and tackle harder-to-extract non-conventional resources.
12. Kazakhstan
Total Proven Oil Reserves: 30 billion barrels
Kazakhstan has the largest proven oil reserves in the Caspian Sea region, with nearly 80% of all recoverable oil reserves situated in ten large fields, including Tengiz, Karachaganak, etc. Kazakhstan’s role as an oil exporter has increased following the Western sanctions against Russia and the country exported over 70 million tons of oil last year, a 10% increase from 2022.
11. Nigeria
Total Proven Oil Reserves: 37.5 billion barrels
Nigeria’s economy is heavily dominated by the oil and gas sector and Africa’s Largest Oil Producer has pumped at an average of 1.5 million b/d so far this year. 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 $20 billion Dangote Oil Refinery comes as a boon and has the capacity to produce 650,000 barrels per day.
10. United States of America
Total Proven Oil Reserves: 48.3 billion barrels
The total crude oil and lease condensate proven reserves in the US increased by 9% in 2022, from 44.4 billion barrels to 48.3 billion barrels. Moreover, with a record average production of 12.9 million b/d in 2023, the United States is also the Biggest Oil Producing Country in the World. 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.
Thanks to its shale oil boom, the US ranks among the Countries with the Most Untapped Oil Reserves in the World.
9. Libya
Total Proven Oil Reserves: 48.36 billion barrels
Libya is the Country with the Largest Oil and Gas Reserves in Africa but has seen little peace and stability since the toppling of Muammar Gaddafi in 2011. For a country that relies on oil export revenues for 90% of its income, the feuds between some major local players are a significant cause for concern.
8. Russia
Total Proven Oil Reserves: 80 billion barrels
Russia’s crude oil exports are seen rising to 239.9 million metric tons this year from 238.3 million tons in 2023. As a result, the country’s economy ministry has increased its 2024 forecasts for export sales of oil and gas by $17.4 billion from the previous estimate of $239.7 billion. This clearly goes to show how the unprecedented Western sanctions have failed to inflict a lasting impact on the Russian economy.
7. Kuwait
Total Proven Oil Reserves: 101.5 billion barrels
In positive news for the major oil producer, Kuwait Oil Company announced in July that it had made a significant discovery of light oil and associated gas in the offshore Al-Nokhatha field, with preliminary reserve estimates of around 2.1 billion barrels of light oil and 5.1 tcf of gas.
The oil industry accounts for nearly half of Kuwait’s GDP and the country is targeting a production capacity of four million barrels per day by 2035.
6. United Arab Emirates
Total Proven Oil Reserves: 113 billion barrels
Since it was founded in 1971, the UAE has been an oil economy with around 96% of its proven oil reserves located in Abu Dhabi. Blessed with some of the highest quality oil reserves in the world, ADNOC (the national oil company of UAE) has a daily production capacity of 4.85 million barrels of oil and 11.5 billion cubic feet of gas. Fossil fuels accounted for over 40% of Abu Dhabi’s $310 billion GDP in 2023.
5. Iraq
Total Proven Oil Reserves: 145.02 billion barrels
Iraq is the second-largest crude oil producer in OPEC after Saudi Arabia and the Iraqi government relies on oil for more than 90% of its revenue. The country is looking to boost its crude reserves to more than 160 billion barrels after it launched new licensing rounds for 29 oil and gas fields earlier this year.
4. Canada
Total Proven Oil Reserves: 166.7 billion barrels
With estimated reserves of about 164 billion barrels, the Canadian oil sands are among the Largest Oil Deposits in the World. The country is a major crude oil supplier to the US and exported over 80% of its total oil supply to its southern neighbor in 2023. However, Canada’s oil industry is suddenly in peril after President-elect Donald Trump recently announced that he does not intend to spare crude oil from his planned 25% import tariffs on Canada and Mexico.
3. Iran
Total Proven Oil Reserves: 208.6 billion barrels
Iran’s oil industry is under threat due to a severe shortage of natural gas, as around 80% of its oil production comes from aging fields facing pressure drops, resulting in an annual production decline of 8-10%. If gas is not re-injected into these oil deposits, some fields might become unproductive, leading to substantial losses to the country’s economy. To make matters worse, the United States has recently expanded sanctions on Iran’s oil sector in response to Tehran’s assault on Israel.
2. Saudi Arabia
Total Proven Oil Reserves: 267.23 billion barrels
Saudi Arabia is the Largest Crude Oil Exporter in the World, with the state-owned Saudi Aramco producing around 9 million barrels per day. In July, KSA’s energy minister announced a new discovery of seven oil and gas deposits in the kingdom’s Eastern Province and Empty Quarter, contributing significantly to its long-term strategic goals in the energy sector.
With total proven reserves of over 267 billion barrels, Saudi Arabia is the Asian Country with the Most Oil Reserves in 2024.
1. Venezuela
Total Proven Oil Reserves: 303.01 billion barrels
Although Venezuela is the country where the world’s largest proven oil reserves are located, its government hasn’t been able to fully capitalize on this wealth, mainly due to the sanctions from the US, an ongoing economic crisis, and mismanagement. As a result, the South American nation has to rely on poor-quality imports from Iran for its energy needs. However, it was announced recently that Venezuela has strengthened its production capacity by signing several cooperation agreements with transnational companies such as Spain’s Repsol and France’s Maurel & Prom.
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