WORLD OIL PRODUCTION
The world's oil supply comes from a wide variety of sources. While the Middle East (home to the largest OPEC producers) was the largest producing region in 2001 with 29% of total world production, North America accounted for 20%, with the remaining 51% dispersed fairly evenly throughout the globe. OPEC member countries together accounted for almost 40% of world production in 2001.

Of the the fourteen countries that produced more than 2 million barrels per day in 2001, seven were OPEC members. The remaining seven were not OPEC members, including: the United States (the world's largest total oil producer for the year), Russia, Mexico, China, Canada, and North Sea countries Norway and the United Kingdom.

OIL
The United States had 22.4 billion barrels of proved oil reserves as of January 1, 2002, twelfth highest in the world. These reserves are concentrated overwhelmingly (over 80%) in four states -- Texas (24% including the state's reserves in the Gulf of Mexico), Alaska (22%), Louisiana (20% including the state's reserves in the Gulf of Mexico), and California (19%, including the state's Federal Offshore reserves). U.S. proven oil reserves have declined by around 20% since 1990, with the largest single-year decline (1.6 billion barrels) occurring in 1991.

Russia is important to world energy markets because it holds the world's largest natural gas reserves, the second largest coal reserves, and the eighth largest oil reserves. Russia is also the world's largest exporter of natural gas, the second largest oil exporter, and the third largest energy consumer.

 

Russia has proven oil reserves of 48.6 billion barrels, with numerous identified deposits in West Siberia, Timan-Pechora, East Siberia, the north Caspian Sea, and Sakhalin Island. In addition, there are many remote regions that may contain oil, and Russian oil companies claim that the country's hydrocarbon reserves will prove much larger once these areas are explored.

Currently, the core of Russia's oil production comes from West Siberia, where fields such as the mammoth Samotlor field produce the bulk of Russia's oil wealth. Oil from West Siberia propelled the Soviet Union, which reached peak production of 12.5 million barrels per day (bbl/d) of oil in 1988, into the world's largest oil producer. Following the collapse of the Soviet Union, Russia's oil industry, which accounted for approximately 90% of the former Soviet Union's oil output, fell upon hard times due to decreased domestic industrial demand and a decline in drilling and capital investment. From 1992 until 1998, the country's oil production plummeted 23%, from 7.86 million barrels per day (bbl/d) to just 6.07 million bbl/d.

Mexico is a major non-OPEC oil producer and home to one of the world's largest oil companies, Pemex. Most of Mexico's oil exports go to the United States.

 

Mexico has the second largest proven crude oil reserves in the Western Hemisphere after Venezuela, at 26.9 billion barrels. In 2001, Mexico produced about 3.6 million barrels per day (bbl/d) of oil, with net oil exports of roughly 1.6 million bbl/d. About 1.4 million bbl/d of these exports were bound for the United States. Mexico ranked as the world's fifth-largest oil producer (including crude, lease condensate, natural gas liquids, and refinery gain), behind the United States, Saudi Arabia, Russia, and Iran.

 

The People's Republic of China (China) is the world's most populous country and the second largest energy consumer (after the United States).  Production and consumption of coal, its dominant fuel, is the highest in the world.  Rising oil demand and imports have made China a significant factor in world oil markets.  All information contained in this report is the best available as of May 2002 and is subject to change.

The People's Republic of China (China) is the world's most populous country and the second largest energy consumer (after the United States).  Production and consumption of coal, its dominant fuel, is the highest in the world.  Rising oil demand and imports have made China a significant factor in world oil markets.  All information contained in this report is the best available as of May 2002 and is subject to change.

Most Chinese oil production capacity, close to 90%, is located onshore. One field alone, Daqing in northeastern China, accounts for about 1.0 million bbl/d of China's production, out of a total crude oil production of around 3.3 million bbl/d. Daqing is a mature field, however, having begun production in 1963.  It is expected to show declining production in the future, but the discovery of additional small oil-bearing structures at the field and the introduction of enhanced recovery technologies may slow the decline.  At China's second-largest producing field, Liaohe in northeastern China, CNPC has solicited proposals from potential foreign partners to help it enhance recovery rates and extend production, though no contracts have yet been signed.  In December 2000, regulatory changes were announced which will remove some of the barriers to foreign firms forming partnerships with Chinese oil majors.  Government priorities focus on stabilizing production in the eastern regions of the country at current levels, increasing production in new fields in the West, and developing the infrastructure required to deliver western oil and gas to consumers in the East.  Offshore development also is a high priority. Chinese officials have said that they expect production in Xinjiang to reach 1 million bbl/d by 2008, but that seems ambitious, given that transportation of that oil to consumers in the East remains a major obstacle.

Canada is a net exporter of oil, natural gas, coal, uranium, and hydropower. It is one of the most important sources of U.S. energy imports.

Canada has proven conventional oil reserves of 4.9 billion barrels, as of January 2002, a 152-million-barrel increase over January 2001 reserves. Oil production averaged 2.9 million barrels per day (bbl/d) during 2002, with estimated consumption of 2.0 million bbl/d. The province of Alberta, located in western Canada, is by far the country's leading oil producing region. While Alberta's light oil reserves are declining (the province now contains an an estimated 45% of the country's total light oil reserves), the province also contains huge oil sands deposits. Meanwhile, projects and potential projects in other provinces are shifting the oil industry's focus to include the eastern and northern parts of the country.

 

The North Sea holds Europe's largest oil and natural gas reserves and is one of the world's key non-OPEC producing regions. Norway and the United Kingdom hold the majority of the North Sea's reserves and production. Denmark, the Netherlands, and Germany have smaller North Sea oil and gas holdings.