Oil production is one of the most watched statistics in the global economy. And 2022 has been a particularly eventful year for black gold. Firstly, the outbreak of the Russia-Ukraine conflict disrupted global oil supply chains; on the other hand, the fear of a drop in demand has forced Saudi Arabia and other OPEC countries to reduce their production even as prices soared.
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In this article, we will examine the 20 countries with the largest oil reserves in the world by 2023, and see what place Algeria occupies in the ranking. The data comes from the International Energy Agency (IEA).
Oil reserves: in how many years could they run out?
Breakdown of proven oil reserves in the world at the end of 2015 according to data from the BP Statistical Review (©Connaissance des Énergies)
As important as they are, the world’s oil reserves are not infinite. With the booming Indian and Chinese economies, the global demand for oil has steadily increased over the past two decades. According to IEA statistics, global oil demand doubled between 1971 and 2019, rising from 2.3 to 4.6 million tonnes.
In terms of global oil consumption, the United States, India and China come out on top. In 2021, the United States alone consumed 21% of the world total (19.8 mbd). However, India and China together consumed almost as much as the Americans (19.55 mbd).
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The International Energy Agency (IEA) estimates that current oil reserves are sufficient to last 38 years old. Another BP assessment (in 2013) indicated that proven oil reserves were only enough for another 53 years; this implies that all of the world’s oil could run out in 2070. Moreover, if we divide the figure of 1757 billion barrels of reserves by that of daily world consumption (97 mbd), we can estimate that oil should last 50 years.
Moreover, the dynamics of the global oil production market are also changing. The outbreak of the Russia-Ukraine conflict in February 2022 resulted in reduced sanctions on Venezuela and increased oil supplies from Iran.
What are Algeria’s oil reserves in 2023?
Oil and gas basins and pipeline infrastructure in Algeria
According to data from the International Energy Agency (IEA) Algeria’s oil reserves, as of 2021, amount to 12.2 billion barrels. This figure places our country at the 16e square of the world ranking of the 20 largest oil reserves.
Between the 20e and the 17e rank, we find, behind Algeria, Azerbaijan, Angola, Norway and Ecuador. Between the 15e and the 5e position, we find (in descending order): Brazil, Qatar, China, Kazakhstan, Nigeria, the United States, Libya, the United Arab Emirates, Kuwait and Russia. As for the top 5, we will see it a little later, in detail…
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Furthermore, let us recall that the economy of Algeria, an OPEC country whose GDP should settle in 2022 around 190 billion USD relies heavily on revenues from its hydrocarbon exports. In addition, the sale of oil and gas accounts for more than 90% of total Algerian exports. The law of the country requires that any foreign company seeking to work in the oil industry in Algeria must do so in partnership with the national company, Sonatrach. In November 2022, Algeria supplied 1.02 million barrels of oil per day.
Finally, on August 24, 2022, Sonatrach announced the discovery of a new oil deposit at the Hassi Illatou drilling, in the wilaya of Adrar. It is estimated that the volume of this could range from 48 to 150 million barrels. This positive result indicates that the Algerian Sahara has not yet delivered all its “treasures”…
The 5 countries with the largest oil reserves in the world in 2023
Venezuela has the largest oil reserves in the world.
In this section, we are going to look at the five countries that have the largest oil reserves in the world by 2023.
Iraq: 145 billion barrels — Iraq is a member state of OPEC. Oil exports make up the largest part of its economy. Iraq is also OPEC’s second largest oil producer. In 2022, Iraq’s oil revenues exceeded 115 billion USD.
Canada: 170.3 billion barrels — Most of Canada’s oil reserves are in the Athabasca oil sands. The largest oil company in the country is Canadian Natural Resources Limited. In 2021, Canada was the world’s fourth largest oil producer with 5.54 mbd.
Iran: 208.6 billion barrels — Heavy US sanctions on Iranian oil severely restrict the number of customers who can buy it. Iran’s national oil company is the National Iranian Oil Company. The main customers for Iranian oil are India and China.
Saudi Arabia: 258.6 billion barrels — The Kingdom of Saudi Arabia is OPEC’s largest oil producer. The Saudi Arabian Oil Company is the number one company in the world in terms of revenue. Earlier this year, Saudi Arabia decided to cut oil production even as prices soared following the Russia-Ukraine crisis.
Venezuela: 303.8 billion barrels — Despite having the largest proven oil reserves in the world, Venezuela ranks relatively low on the list of producing countries (22e). However, the disruption of the supply chain following the Russia-Ukraine conflict could be a game-changer. Because the United States has decided to ease some of its sanctions against the country.
