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.

British company Prax Group has filed for insolvency, putting hundreds of jobs at its Lindsey oil site at risk, according to Sky News.
Orlen announces the definitive halt of its Russian oil purchases for the Czech Republic, marking the end of deliveries by Rosneft following the contract expiry, amid evolving logistics and diversification of regional supply sources.
Equinor and Shell launch Adura, a new joint venture consolidating their main offshore assets in the United Kingdom, aiming to secure energy supply with an expected production of over 140,000 barrels of oil equivalent per day.
Equinor announces a new oil discovery estimated at between 9 and 15 mn barrels at the Johan Castberg field in the Barents Sea, strengthening the reserve potential in Norway's northern region.
Sierra Leone relaunches an ambitious offshore exploration campaign, using a 3D seismic survey to evaluate up to 60 potential oil blocks before opening a new licensing round as early as next October.
Faced with recurrent shortages, Zambia is reorganising its fuel supply chain, notably issuing licences for operating new tanker trucks and service stations to enhance national energy security and reduce external dependence.
The closure of the Grangemouth refinery has triggered a record increase in UK oil inventories, highlighting growing dependence on imports and an expanding deficit in domestic refining capacity.
Mexco Energy Corporation reports an annual net profit of $1.71mn, up 27%, driven by increased hydrocarbon production despite persistently weak natural gas prices in the Permian Basin.
S&P Global Ratings lowers Ecopetrol's global rating to BB following Colombia's sovereign downgrade, while Moody’s Investors Service confirms the group's Ba1 rating with a stable outlook.
Shell group publicly clarifies it is neither considering discussions nor approaches for a potential takeover of its British rival BP, putting an end to recent media speculation about a possible merger between the two oil giants.
Petro-Victory Energy Corp. starts drilling of the AND-5 well in the Potiguar Basin, Brazil, as the first phase of an operation financed through its strategic partnership with Azevedo & Travassos Energia.
The Texan Port of Corpus Christi has completed major widening and deepening work designed to accommodate more supertankers, thus strengthening its strategic position in the US market for crude oil and liquefied natural gas exports.
CNOOC Limited’s Hong Kong subsidiary and KazMunayGas have concluded a nine-year exploration and production contract covering nine hundred and fifty-eight square kilometres in Kazakhstan, sharing investment and operations equally.
Donald Trump announced that the United States will no longer oppose Chinese purchases of Iranian oil, immediately triggering a drop in global crude oil prices and profoundly reshaping international energy trade partnerships.
Research firm S&P Global Commodity Insights lifts its outlook for the fourth straight year, betting on three point five mn barrels per day from 2025 despite lower prices.
Enbridge plans to expand its infrastructure to increase oil transportation from the American Midwest to the Gulf Coast, anticipating rising exports and addressing current market logistical constraints.
US commercial crude inventories significantly decline by 3.1 million barrels, widely surpassing initial forecasts and immediately pushing international oil prices higher.
The UK could have hydrocarbon reserves twice as large as current official estimates, according to Offshore Energies UK, highlighting the impact of fiscal policies on forecasts and the economic future of the North Sea.
Following US strikes in Iran, international energy companies partially evacuate their teams from Iraq as a precaution, while Lukoil maintains its entire personnel on southern oilfields.
Chinese independent refineries remain cautious amid rising Iranian crude prices driven by escalating Iran-Israel tensions, potentially threatening access to the strategic Strait of Hormuz.