Oil: The ten powers with the largest reserves

Oil, the world's major source of energy, generates geopolitical tensions. Venezuela has the largest reserves, followed by Saudi Arabia, but renewable energies are threatening this dominance. Middle Eastern countries play a key role in this industry.

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Oil has been at the heart of international relations and geopolitical tensions, such as the invasion of Kuwait in 1990, since its emergence in the XIXᵉ century. Controlling production and marketing is an issue of international power. Indeed, oil is the world’s leading energy source, accounting for 31.6% in 2018. This energy, used for fuel, electricity, factories, fertilizers and plastics, is omnipresent in our society.

While global reserves are increasing every year, with 244.6 Gt in 2019 according to BP, consumption is falling. The emergence of renewable energies is tending to reduce the use of fossil fuels. Oil accounted for 11,377 million tonnes of CO2 in 2017.

Venezuela as world leader

With 300 billion barrels of proven reserves, or 17.5% of world reserves, Venezuela has the world’s largest oil reserves. The latter is made up of several oil sands deposits, such as the Orinoco, which are difficult and costly to exploit. The country acquired this position in 2011, after overtaking Saudi Arabia. A founding member of OPEC, Venezuela operates this business through state-owned Petroleos.

Saudi Arabia’s ephemeral downgrading

While the country was the world benchmark in terms of oil reserves for several decades, it has lost its leading position to Venezuela. Saudi Arabia currently has 269 billion barrels, or a fifth of the world’s reserves. The country could, however, regain its top spot. The state-owned audi Arabian Oil Company is expected to increase its exploration activities in the near future, in order to surpass Venezuela’s oil reserves.

Numerous Canadian oil sands deposits

In third place, Canada has 171 billion barrels. This reserve is 95% dependent on oil sands deposits in the province of Alberta, which are costly to exploit and have a significant environmental impact. These sites are a key factor in the growth of our liquid fuel supply. These resources are exploited by Petro-Canda, whose main shareholder is Suncor Energie Inc. and other Canadian subsidiaries of multinational companies.

The Middle East at the heart of OPEC

By monopolizing the fourth, fifth and sixth places, Iran, Iraq and Kuwait are important OPEC members. Each has reserves of 158 trillion barrels, 143 trillion barrels and 104 trillion barrels respectively.

Countries plagued by political unrest

Iran and Iraq, however, have seen their oil production and exploration slow due to the sanctions imposed by Western countries. Not least because of Iran’s nuclear activities, and Iraq’s Gulf wars. What’s more, both countries have experienced political turmoil and war. However, both countries have numerous sites, unlike Kuwait, where around 70% are located in the Burgan field, the world’s second-largest oilfield.

largest oil reserves
Percentage breakdown of the world’s proven oil reserves at the end of 2015, based on data from the BP Statistical Review © Connaissance des Énergies.

Oil production by state-owned companies

Oil reserves and operations in Iraq, Iran and Kuwait are managed by state-run national companies. These are the National Iranian Oil Company, the National Iraq Oil Company and the Kuwait Oil Company.

Siberian reserve wins seventh place

With its oil reserves in the Siberian plains, Russia has 80 billion barrels of reserves. Thanks to the growing exploration of Arctic waters and ice, the country’s ranking is set to rise. Lukoil is Russia’s largest state-owned oil producer and operator.

The third largest in the Middle East in the United Arab Emirates

By owning the Zakum field, the United Arab Emirates has 98 billion barrels of oil reserves, guaranteeing it eighth place in the ranking. Over 90% of reserves are held by Abu Dhabi, followed by Dubai and Sharjah. The country operates these sites through state-owned Saudi Aramco.

Libya and Nigeria, African leaders

Ninth and tenth in terms of hydrocarbon reserves, Libya has the largest oil reserves in Africa, and Nigeria is Africa’s biggest oil producer. Each owns 48 billion barrels and 37 billion barrels. However, these two countries still have plenty of potential for exploration.

While oil production in Niger is managed by the state-owned Nigerian National Petroleum Corporation, Libyan production is managed by private companies. They are ENI, with its main shareholder Cassa Depositi e Prestiti, Total with its main shareholder BlackRock and the Russian state-owned company Rosneft.

U.S. legislation eases access to federal lands for oil production, but fluctuations in crude prices may limit concrete impacts on investment and medium-term production, according to industry experts.
Permex Petroleum Corporation has completed a US$2mn fundraising by issuing convertible debentures, aimed at strengthening its cash position, without using intermediaries, and targeting a single institutional investor.
Petróleos de Venezuela S.A. (PDVSA) recorded $17.52bn in export sales in 2024, benefiting from increased volumes due to U.S. licences granted to foreign partners, according to an internal document seen by Reuters.
The detection of zinc in Mars crude extracted off the coast of Louisiana forced the US government to draw on its strategic reserves to support Gulf Coast refineries.
Commissioning of a 1.2-million-ton hydrocracking unit at the TANECO site confirms the industrial expansion of the complex and its ability to diversify refined fuel production.
Oil stocks in the United States saw an unexpected rise of 7.1 million barrels as of July 4, defying analyst expectations of a decline, according to the U.S. Energy Information Administration (EIA).
Petro-Victory Energy announces the completion of drilling operations for the AND-5 well in the Andorinha field, Brazil, with positive reservoir results and next steps for production.
The Colombian prosecutor’s office has seized two offices belonging to the oil company Perenco in Bogotá. The company is accused of financing the United Self-Defense Forces of Colombia (AUC) in exchange for security services between 1997 and 2005.
Indonesia has signed a memorandum of understanding with the United States to increase its energy imports. This deal, involving Pertamina, aims to diversify the country's energy supply sources.
VAALCO Energy continues to operate the Baobab field by renovating its floating platform, despite modest production. This strategy aims to maintain stable profitability at low cost.
An empty reservoir exploded at a Lukoil-Perm oil facility in Russia, causing no injuries according to initial assessments pointing to a chemical reaction with oxygen as the cause of the accident.
The British Lindsey refinery has resumed fuel deliveries after reaching a temporary agreement to continue operations, while the future of this strategic site remains under insolvency proceedings.
BP and Shell intensify their commitments in Libya with new agreements aimed at revitalizing major oil field production, amid persistent instability but rising output in recent months.
The private OCP pipeline has resumed operations in Ecuador following an interruption caused by heavy rains, while the main SOTE pipeline remains shut down, continuing to impact oil exports from the South American country.
McDermott secures contract worth up to $50 million with BRAVA Energia to install subsea equipment on the Papa-Terra and Atlanta oil fields off the Brazilian coast.
A bulk carrier operated by a Greek company sailing under a Liberian flag suffered a coordinated attack involving small arms and explosive drones, prompting an Israeli military response against Yemen's Houthis.
The Canadian government is now awaiting a concrete private-sector proposal to develop a new oil pipeline connecting Alberta to the Pacific coast, following recent legislation intended to expedite energy projects.
Petrobras is exploring various strategies for its Polo Bahia oil hub, including potentially selling it, as current profitability is challenged by oil prices around $65 per barrel.
Brazilian producer Azevedo & Travassos will issue new shares to buy Petro-Victory and its forty-nine concessions, consolidating its onshore presence while taking on net debt of about USD39.5mn.
Major oil producers accelerate their return to the market, raising their August quotas more sharply than initially expected, prompting questions about future market balances.