The “Seven Sisters” were a collection of multinational Anglo-American firms that controlled the world oil market in the second part of the 20th century. Therefore, at the Baghdad Conference in 1960, the petroleum-rich countries of Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela came together to form the Organization of the Petroleum Exporting Countries (OPEC) in an attempt to gain more control over their own resources. These countries recognized they were dealing with a limited, non-renewable resource, and that if they engaged in competition with one another, the price of oil would eventually go too low, causing them to run out of this valuable but limited resource even sooner.
OPEC currently has 12 members, and it is estimated that these countries hold 80% of the world’s proven crude oil reserves. As such, OPEC has significant power over the global energy landscape.
Look at the world’s top 5 countries with the largest proven oil reserves.
5. United Arab Emirates
Total proven oil reserves in 2022: 113 billion barrels
To increase crude oil production capacity to 5 million barrels per day by 2027, ADNOC (the UAE’s national oil company) will The dollar, which spent US$1 billion, planned to increase upstream exploration and development. Approximately 96% of the UAE’s proven oil reserves are located in Abu Dhabi.
The United Arab Emirates is one of the largest oil producers, but COP 28 organizers said it was investing “much more” in renewable energy than oil and gas. In 2022, the UAE will invest a whopping $36 billion in renewable energy projects overseas, underscoring its commitment to a greener future.
4. Iraq
Total proven oil reserves in 2022: 145.019 billion barrels
Iraq is the second largest producer of crude oil among OPEC members after Saudi Arabia, and has the highest proven oil reserves in the Middle East. 17% and 8% of the world’s reserves. All of Iraq’s oil fields are on land, with the majority located in the Basra region in the south, Diyala region east of Baghdad, and Kirkuk region in the northeast.
The market value of the country’s oil, gas and other natural resources is more than $15 trillion, according to Mazar Muhammad Salih, a financial advisor to Iraq’s prime minister.
3. Iran
Total proven oil reserves in 2022: 208.6 billion barrels
Since Iran is one of the world’s top three oil holders, cheap gasoline is essentially a given for its citizens. Although high state subsidies have kept gas prices low, the government has been obliged to use its strategic reserves and import gasoline for the first time in ten years as a result of the growing discord between supply (which is constrained by domestic refining capacity) and rising demand.
Approximately 80% of Iran’s oil production is produced in aging fields that are subject to depressurization, resulting in an 8% to 10% reduction in annual production.
2. Saudi Arabia
Total proven oil reserves in 2022: 267.192 million barrels
Saudi Arabia holds approximately 17% of the world’s proven oil reserves. Owned and operated by Saudi Aramco, the country is home to the world’s largest onshore conventional oil field (Ghawar) and the world’s largest offshore conventional oil field (Safaniya).
Saudi Aramco generated a huge revenue of $535.2 billion in 2022, an increase of 49% compared to 2021. The state-run oil producer posted a profit of $161 billion that year, the largest annual profit ever for an oil and gas company. Rising energy prices and increasing global demand are the driving forces. The company plans to continue investing to increase its potential maximum production capacity to 13 million barrels per day by 2027.
Saudi Aramco is the world’s largest oil company by production.
1. Venezuela
Total proven oil reserves in 2022: 303.221 billion barrels
Venezuela is the country with the world’s largest proven oil reserves, but its government is struggling to control its oil wealth, especially due to U.S. sanctions. are not fully utilized. The ongoing economic crisis and misgovernment. Additionally, most of Venezuela’s oil is located offshore or deep underground and is considered dense, making extraction with currently available technology financially viable.