Which countries are the leading Oil Producers and Consumers?

Oil is one of the most valuable commodities on the planet, and whoever owns it controls and dominates the whole planet. Petroleum production, distribution, refining, and retailing as a whole is the world’s most valuable industry in terms of dollar value. 

Oil prices, which have have been breaking records with their increasing prices, currently costs $71.67 a barrel. While rising natural gas prices in Europe and Asia have raised concern, the oil rally is gaining traction, which some say might lead to an economy-depleting increase similar to that experienced in 2008, when prices reached almost $150 per barrel just before the global financial crisis. 

Future of Oil and Gas Industry:

Oil has a shelf life of 50 years, natural gas has a shelf life of 53 years, and coal has a shelf life of 114 years.
However, due to the lack of widespread adoption of alternative energy, we may be compelled to deplete our stocks sooner rather than later.

As a result, if demand and supply are out of balance, prices are bound to rise. The second reason is a dearth of investment in the oil sector, as governments push renewable/green energy companies like solar power. Crude oil will grow more expensive in the coming months. By 2023, crude oil prices could have risen by 100%.

Oil and Gas Industry India:

According to India’s Oil and Gas Industry, the country’s oil demand will grow at the fastest rate in the world, reaching 10 million barrels per day by 2030, up from 5.05 million barrels per day in 2020. Natural gas consumption is expected to grow at a 4.18 percent compound annual growth rate (CAGR) to 143.08 million tonnes by 2040, up from 58.10 million tonnes in 2018.

According to the International Energy Agency’s (IEA) latest assessment, India’s oil demand will increase by 50% by 2030, compared to a global increase of 7%. According to the IEA’s major scenario based on stated policies, India’s oil consumption will climb from 4.8 million barrels per day (mbd) in 2019 to 7.2 mbd in 2030 and 9.2 mbd in 2050.

Top 10 Oil Consumers of 2021 (Barrels per day):

  1. United States (19,690,000)
  2. China (11,750,000)
  3. India (4,489,000)
  4. Japan (4,026,000)
  5. Russia (3,594,000)
  6. Saudi Arabia (3,237,000)
  7. Brazil (3,018,000)
  8. South Korea (2,630,000)
  9. Germany (2,410,000)
  10. Canada (2,379,000).

Top 10 Oil Producers of 2021 (1000 Barrels per day):

  1. United States (12,108)
  2. Russia (10,835)
  3. Saudi Arabia (9,580)
  4. Iraq (4,620)
  5. Canada (4,129)
  6. China (3,823)
  7. United Arab Emirates (3,068)
  8. Kuwait (2,652)
  9. Brazil (2,604)
  10. Iran (2,213).

We will run out of oil in roughly 30 years if we continue to utilise it at our current rate. The usage of oil and drilling has a negative influence on the environment. Animals can perish and ecosystems can be destroyed when oil spills in bodies of water. When we burn oil in our automobiles, we release chemicals into the atmosphere that contribute to global warming. 

Oil imports are destroying India’s trade balance, so India and other countries should push EVs at a faster speed to get out of this fossil fuel rut. Meanwhile, India can work on:

  • Increasing domestic exploration and refining investment,
  • Developing alternative energy production and consumption,
  • Expanding the capability for ethanol blending and increasing gas usage.

Although India’s expanding population is a challenge, EV affordability for Indians is still a long way off, given our stagnant economy.

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