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Top 10 Oil-producing Countries

Global oil production has continued to rise over the years. Here’s a look at the top 10 oil-producing countries of 2020.
The post Top 10 Oil-producing Countries appeared first on Investing News Network.

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Oil demand has been impacted significantly by COVID-19, as business activity, travel and daily life continue to be disrupted. Those events, paired with the price war between Saudi Arabia and Russia, sent prices on a downward spiral in 2020.

However, prior to those recent events, oil prices had rebounded quite a bit since 2016 after an output control deal was made between the Organization of the Petroleum Exporting Countries (OPEC) and 11 of the world’s top oil producers. It was the first cut since 2008.

The agreement called for oil production to fall by almost 1.8 million barrels a day (bpd), and in late 2018, OPEC again decided to cut crude oil production by 1.2 million bpd in an effort to stabilize prices.

 

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The OPEC deal faced obstacles as increasing oil production in the US and other countries like Brazil and Libya softened the effect of the cuts and created some price volatility.

In March of last year, the agreement expired, with production increasing dramatically in April following Russia’s decision not to approve further cuts proposed by Saudi Arabia. The de facto OPEC leader responded by offering its product at discounted prices and pumping more oil.

In an oversupplied market being hit by a lack of demand, prices turned negative. With some pressure from the US, Russia and OPEC finally came to an agreement to cut production by 9.7 million bpd — the single largest output cut in history. Since then, the organization has begun to gradually increase production levels; at the same time, 2021 has seen oil demand slowly return as vaccination levels increase and COVID-19 lockdowns ease worldwide.

Given market events, many investors are curious to know which countries produce the most oil. Read on for a look at the top 10 oil-producing countries in the world in 2020. Statistics are from the Energy Information Administration (EIA) and include total production of petroleum and other liquids.

1. United States

Production: 18,600,000 bpd

Number one on this list of the top 10 oil-producing countries is the US. Although its output decreased from its 2019 level to reach 18,600,000 bpd last year, it produced the most oil in 2020.

The US has been described as a swing producer because its production fluctuates alongside market prices. The International Energy Agency forecasts that the country will continue to lead the way as the largest source of new supply.

In addition to being a major oil producer, the US is a big consumer of oil. Last year, the US took in a total of 6.63 billion barrels of petroleum products — that’s an average of about 18.12 million bpd.

2. Saudi Arabia

Production: 11,010,000 bpd

Saudi Arabia’s output came in at 11,010,000 bpd in 2020. The country possesses 17 percent of the world’s proven petroleum reserves and is the largest petroleum exporter. Its oil and gas sector accounts for around 50 percent of its gross domestic product, and about 85 percent of its export earnings.

 

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In 2020, Saudi Arabia played a key role in OPEC’s decision to curb oil output. The Middle Eastern country decided to reduce production by 3.3 million bpd to meet the conditions of the deal signed with other OPEC members and allies.

3. Russia

Production: 10,500,000 bpd

Prior to production cuts in 2020, Russian oil output had spent a number of years rising; it hit 10,500,000 bpd last year.  Most of Russia’s reserves are located in West Siberia, between the Ural Mountains and the Central Siberian Plateau, as well as in the Urals-Volga region, extending into the Caspian Sea.

Under last year’s deal with OPEC members and other nations, Russia had to find a way to cut a fifth of its oil output, or about 2.5 million bpd, to tackle the market glut.

4. Canada

Production: 5,290,000 bpd

Next on this list of the top 10 oil-producing countries is Canada. The country’s annual oil production fell to 5,290,000 bpd in 2020, down from 2019’s output levels of 5,500,000 bpd.

Nearly all of Canada’s proven oil reserves are located in Alberta, and according to the province’s government, 97 percent of oil reserves there are in the form of oil sands. Energy exports to the US account for the vast majority of Canada’s total energy exports. However, because of economic and political considerations, Canada is developing ways to diversify its trading partners, especially by expanding ties with emerging markets in Asia.

Canada has been embroiled in a national debate over pipelines. In 2018, the federal government purchased the Kinder Morgan Canada (NYSE:KMI) Trans Mountain pipeline for C$4.5 billion to ensure Canadian crude reaches market ports. At the time, an expansion was estimated to cost another C$7.4 billion, after which the government would sell the project back to the private sector. In February 2020, a new cost estimate for the project sent the C$7.4 billion figure to C$12.6 billion.

Despite the global pandemic and oil price crash, construction on the expansion is progressing with COVID-19 safety measures in place. The expansion is now expected to be operational by December 2022.

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5. China

Production: 4,930,000 bpd

China’s annual oil output was 4,930,000 bpd in 2020. The nation is the world’s second largest consumer of oil and moved from being the second largest net importer of oil to the largest in 2014.

Of the top 10 oil-producing countries, China is the world’s most populous country and has a rapidly growing economy, factors that have driven its high overall energy demand. In fact, the Asian country is the top consumer of oil, with 55 percent of its imports coming from OPEC member countries.

According to Reuters, China’s crude oil imports grew by 7.3 percent to reach record levels in 2020. Refineries and independent storage operators “(took) advantage of” of low prices and “robust domestic demand as the economy quickly recovered from the coronavirus pandemic.”

6. Iraq

Production: 4,160,000 bpd

In 2017, despite increasing its output, Iraq got bumped from sixth place by Iran on this top 10 oil-producing countries list. Output in 2018 helped the nation regain its sixth spot position.

The Middle Eastern country saw its oil production decrease significantly from 4,740,000 bpd in 2019 to 4,160,000 bpd in 2020. It holds the world’s fifth largest proven oil reserves at 145 billion barrels; that represents 8.4 percent of global reserves.

7. United Arab Emirates

Production: 3,790,000 bpd

The United Arab Emirates is an OPEC member, and has ranked among the top 10 oil-producing countries for decades. In 2020, it saw a small decrease in production from the previous year’s 4,010,000 bpd, with oil output falling to 3,790,000 bpd.

The country holds the world’s eighth largest proven oil reserves at 98 billion barrels, with most of those reserves located in Abu Dhabi. The UAE accounts for 5.6 percent of global total reserves.

 

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8. Brazil

Production: 3,780,000 bpd

Last year, Brazil’s oil production jumped dramatically slightly from 3,678,000 bpd in 2019 to 3,780,000 bpd in 2020.

According to the EIA, total primary energy consumption in Brazil has nearly doubled in the past decade because of sustained economic growth. The largest share of Brazil’s total energy consumption is oil and other liquid fuels, followed by hydroelectricity and natural gas. The recent surge in production and exports is said to be the result of years of large investments by state-run Petróleo Brasileiro (Petrobras).

9. Iran

Production: 2,810,000 bpd

Iran’s oil output decreased last year, falling from 3,190,000 bpd in 2019 to 2,810,000 bpd in 2020. According to the EIA, Iran holds the world’s fourth largest proven oil reserves and the world’s second largest natural gas reserves. Despite the country’s abundant reserves, Iran’s oil production has substantially fallen in recent years, and natural gas production growth has been slower than expected.

US sanctions and regional disputes have all weighed on Iran’s energy production sector. Blocking Iran’s access to crude carriers will have a huge impact on the nation’s oil industry, as well as its largest buyers in Asia. China recently signed a 25-year trade and security agreement with Iran and has called on the US to drop its sanctions.

10. Kuwait

Production: 2,660,000 bpd

Last on this list of the top 10 oil-producing countries is Kuwait, whose output decreased in 2020 after increasing for two years in a row. In 2016, production reached 3,072,000 bpd, then dropped to 2,825,000 bpd in 2017. In 2018, the country made a slight recovery, producing 2,870,000 bpd and was back up at 2,940,000 bpd in 2019. In 2020, that production level has dropped to its lowest in years, at 2,660,000 bpd.

Kuwait’s oil and gas sector accounts for about 60 percent of country’s GDP and about 95 percent of its export revenues.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

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Costco Tells Americans the Truth About Inflation and Price Increases

The warehouse club has seen some troubling trends but it’s also trumpeting something positive that most retailers wouldn’t share.

Published

41 mins ago

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May 28, 2023

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Costco has been a refuge for customers during both the pandemic and during the period when supply chain and inflation issues have driven prices higher. In the worst days of the covid pandemic, the membership-based warehouse club not only had the key household items people needed, it also kept selling them at fair prices.

With inflation -- no matter what the reason for it -- Costco  (COST) - Get Free Report worked aggressively to keep prices down. During that period (and really always) CFO Richard Galanti talked about how his company leaned on vendors to provide better prices while sometimes also eating some of the increase rather than passing it onto customers.

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That wasn't an altruistic move. Costco plays the long game, and it focuses on doing whatever is needed to keep its members happy in order to keep them renewing their memberships.

It's a model that has worked spectacularly well, according to Galanti.

"In terms of renewal rates, at third quarter end, our US and Canada renewal rate was 92.6%, and our worldwide rate came in at 90.5%. These figures are the same all-time high renewal rates that were achieved in the second quarter, just 12 weeks ago here," he said during the company's third-quarter earnings call.

Galanti, however, did report some news that suggests that significant problems remain in the economy.

Costco has done an incredibly good job at holding onto members.

Image source: Xinhua/Ting Shen via Getty Images

Costco Does See Some Economic Weakness

When people worry about the economy, they sometimes trade down when it comes to retailers. Walmart executives (WMT) - Get Free Report, for example, have talked about seeing more customers that earn six figures shopping in their stores.

Costco has always had a diverse customer base, but one weakness in its business may be a warning sign for its rivals like Target (TGT) - Get Free Report, Best Buy (BBY) - Get Free Report, and Amazon (AMZN) - Get Free Report. Galanti broke down some of the numbers during the call.

"Traffic or shopping frequency remains pretty good, increasing 4.8% worldwide and 3.5% in the U.S. during the quarter," he shared.

People shopped more, but they were also spending less, according to the CFO.

"Our average daily transaction or ticket was down 4.2% worldwide and down 3.5% in the U.S., impacted, in large part, from weakness in bigger-ticket nonfood discretionary items," he shared.

Now, not buying a new TV, jewelry, or other big-ticket items could just be a sign that consumers are being cautious. But, if they're not buying those items at Costco (generally the lowest-cost option) that does not bode well for other retailers.

Galanti laid out the numbers as well as how they broke down between digital and warehouse.

"You saw in the release that e-commerce was a minus 10% sales decline on a comp basis," he said. "As I discussed on our second quarter call and in our monthly sales recordings, in Q3, big-ticket discretionary departments, notably majors, home furnishings, small electrics, jewelry, and hardware, were down about 20% in e-com and made up 55% of e-com sales. These same departments were down about 17% in warehouse, but they only make up 8% in warehouse sales."

Costco's CFO Also Had Good News For Shoppers

Galanti has been very open about sharing information about the prices Costco has seen from vendors. He has shared in the past, for example, that the chain does not pass on gas price increases as fast as they happen nor does it lower prices as quick as they sometimes fall.

In the most recent call, he shared some very good news on inflation (that also puts pressure on Target, Walmart, and Amazon to lower prices).

"A few comments on inflation. Inflation continues to abate somewhat. If you go back a year ago to the fourth quarter of '22 last summer, we had estimated that year-over-year inflation at the time was up 8%. And by Q1 and Q2, it was down to 6% and 7% and then 5% and 6%," he shared. "In this quarter, we're estimating the year-over-year inflation in the 3% to 4% range."

The CFO also explained that he sees prices dropping on some very key consumer staples.

"We continue to see improvements in many items, notably food items like nuts, eggs and meat, as well as items that include, as part of their components, commodities like steel and resins on the nonfood side," he added.

  

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Government

‘Kevin Caved’: McCarthy Savaged Over Debt Ceiling Deal

‘Kevin Caved’: McCarthy Savaged Over Debt Ceiling Deal

Update (1345ET): The hits just keep coming for Speaker Kevin McCarthy, as angry Republicans…

Published

3 hours ago

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May 28, 2023

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'Kevin Caved': McCarthy Savaged Over Debt Ceiling Deal

Update (1345ET): The hits just keep coming for Speaker Kevin McCarthy, as angry Republicans have been outright rejecting the debt ceiling deal which raises it by roughly $4 trillion for two years, doesn't provide sticking points sought by the GOP.

In short, Kevin caved according to his detractors.

Some Democrats aren't exactly pleased either.

"None of the things in the bill are Democratic priorities," Rep. Jim Himes (D-CT) told Fox News Sunday. "That's not a surprise, given that we're now in the minority. But the obvious point here, and the speaker didn't say this, the reason it may have some traction with some Democrats is that it's a very small bill."

*  *  *

After President Biden and House Speaker Kevin McCarthy (R-CA) struck a Saturday night deal to raise the debt ceiling, several Republicans outright rejected it before it could even be codified into a bill.

Here's what's in it;

  • The deal raises the debt ceiling by roughly $4 trillion for two years, and is consistent with the structure of budget deals struck in 2015, 2018 and 2019 which simultaneously raised the debt limit.
  • According to a GOP one-pager on the deal, it includes a rollback of non-defense discretionary spending to FY2022 levels, while capping topline federal spending to 1% annual growth for six years.
  • After 2025 there are no budget caps, only "non-enforceable appropriations targets."
  • Defense spending would be in-line with what Biden requested in his 2024 budget proposal - roughly $900 billion.
  • The deal fully funds medical care for veterans, including the Toxic Exposure Fund through the bipartisan PACT Act.
  • The agreement increases the age for which food stamp recipients must seek work to be eligible, from 49 to 54, but also includes reforms to expand who is eligible.
  • Claws back "tens of billions" in unspent COVID-19 funds
  • Cuts IRS funding 'without nixing the full $80 billion' approved last year. According to the GOP, the deal will "nix the total FY23 staffing funding request for new IRS agents."
  • The deal includes energy permitting reform demanded by Republicans and Sen. Joe Manchin (D-WV)
  • No new taxes, according to McCarthy.

Here's McCarthy acting like it's not DOA:

Yet, Republicans who demanded deep cuts aren't having it.

"A $4 trillion debt ceiling increase?" tweeted Rep. Andrew Clyde (R-GA). "With virtually none of the key fiscally responsible policies passed in the Limit, Save, Grow Act kept intact?"

"Hard pass. Hold the line."

"Hold the line... No swamp deals," tweeted Rep. Chip Roy (R-TX)

"A $4 TRILLION debt ceiling increase?! That's what the Speaker's negotiators are going to bring back to us?" tweeted Rep. Dan Bishop (R-NC). "Moving the issue of unsustainable debt beyond the presidential election, even though 60% of Americans are with the GOP on it?"

Rep. Keith Self tweeted a letter from 34 fellow House GOP members who are committing to "#HoldTheLine for America" against the deal.

"Nothing like partying like it’s 1996. Good grief," tweeted Russ Vought, President of the Center for Renewing America and former Trump OMB director.

In short:

Tyler Durden Sun, 05/28/2023 - 11:30

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Government

“Hard Pass”: Here’s What’s In The Debt Ceiling Deal Republicans Are About To Nuke

"Hard Pass": Here’s What’s In The Debt Ceiling Deal Republicans Are About To Nuke

After President Biden and House Speaker Kevin McCarthy (R-CA)…

Published

5 hours ago

on

May 28, 2023

By

"Hard Pass": Here's What's In The Debt Ceiling Deal Republicans Are About To Nuke

After President Biden and House Speaker Kevin McCarthy (R-CA) struck a Saturday night deal to raise the debt ceiling, several Republicans outright rejected it before it could even be codified into a bill.

Here's what's in it;

  • The deal raises the debt ceiling by roughly $4 trillion for two years, and is consistent with the structure of budget deals struck in 2015, 2018 and 2019 which simultaneously raised the debt limit.
  • According to a GOP one-pager on the deal, it includes a rollback of non-defense discretionary spending to FY2022 levels, while capping topline federal spending to 1% annual growth for six years.
  • After 2025 there are no budget caps, only "non-enforceable appropriations targets."
  • Defense spending would be in-line with what Biden requested in his 2024 budget proposal - roughly $900 billion.
  • The deal fully funds medical care for veterans, including the Toxic Exposure Fund through the bipartisan PACT Act.
  • The agreement increases the age for which food stamp recipients must seek work to be eligible, from 49 to 54, but also includes reforms to expand who is eligible.
  • Claws back "tens of billions" in unspent COVID-19 funds
  • Cuts IRS funding 'without nixing the full $80 billion' approved last year. According to the GOP, the deal will "nix the total FY23 staffing funding request for new IRS agents."
  • The deal includes energy permitting reform demanded by Republicans and Sen. Joe Manchin (D-WV)
  • No new taxes, according to McCarthy.

Here's McCarthy acting like it's not DOA:

Yet, Republicans who demanded deep cuts aren't having it.

"A $4 trillion debt ceiling increase?" tweeted Rep. Andrew Clyde (R-GA). "With virtually none of the key fiscally responsible policies passed in the Limit, Save, Grow Act kept intact?"

"Hard pass. Hold the line."

"Hold the line... No swamp deals," tweeted Rep. Chip Roy (R-TX)

"A $4 TRILLION debt ceiling increase?! That's what the Speaker's negotiators are going to bring back to us?" tweeted Rep. Dan Bishop (R-NC). "Moving the issue of unsustainable debt beyond the presidential election, even though 60% of Americans are with the GOP on it?"

Rep. Keith Self tweeted a letter from 34 fellow House GOP members who are committing to "#HoldTheLine for America" against the deal.

"Nothing like partying like it’s 1996. Good grief," tweeted Russ Vought, President of the Center for Renewing America and former Trump OMB director.

In short:

Tyler Durden Sun, 05/28/2023 - 11:30

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