Mineral & Energy Resources

Oil, the lifeblood of industrialized nations, has been the world’s primary energy source since the mid-1950s. It fuels powering industries, heating homes, and propelling vehicles and aircraft that connect the global community. However, global oil production is highly uneven. Presently, approximately 80.4% (1,241.82 billion barrels) of the world’s proven oil reserves are concentrated in OPEC Member Countries, with the majority, 67.1%, found in the Middle East.

Geographical Distribution of Major Oil- Producing Nations:

• Middle East: Slightly less than half of the world’s proven oil reserves are located in this region.
  • Saudi Arabia: It has second-largest proven oil reserves in the world (~20 percent). o
  • Iraq, Kuwait, Iran: Each estimated to have 25 percent of all proven oil reserves in the world. Al-Burqan oilfield (Kuwait) is the world’s second largest oil field.
  • United Arab Emirates (UAE): It ranks among the top ten oil-producing nations globally. Approximately 96% of the nation’s extensive proven oil reserves, which amount to roughly 100 billion barrels, are situated in Abu Dhabi, placing it sixth in the global rankings. o
  • Qatar: According to the Oil & Gas Journal, Qatar possesses approximately 11% of the world’s confirmed natural gas reserves and nearly 30% of the reserves found in the Middle East.
  • Oman: It stands as the most prominent oil producer in the Middle East that is not a member of the Organization of Petroleum Exporting Countries (OPEC).
• Russia: It ranks as the world’s third-largest oil producer, trailing only the United States and Saudi Arabia in production.
• United States: As of 2023, the United States maintains its status as the foremost global producer of crude oil, a position it has maintained since 2018. Its confirmed oil reserves constitute 2% of the global aggregate.
• Canada: It ranks third globally in terms of oil reserves and holds the position of the fourth-largest oil producer in the world.
• Mexico: It possesses the seventeenth-largest oil reserves on a global scale, and it ranks as the fourth most significant oil producer in the Western Hemisphere, following the United States, Canada, and Venezuela.
• Venezuela: With the world’s largest oil reserves, totaling more than 303 billion barrels, Venezuela is the fourth-largest oil producer in Latin America.
• Brazil: In 2022, Brazil secured the ninth position in global oil production with an average daily output of slightly more than 3 million barrels.
• United Kingdom: In 2022, the UK sustained its position as a significant oil and gas producer, contributing 0.8% to the global production. This, however, marked a nearly 11 percent decrease compared to the oil production reported in 2021.
• African Region: As of 2022, Nigeria held the top position as Africa’s primary oil producer, with an annual oil production of approximately 69 million metric tons. Following closely were Libya, Algeria, and Angola, each surpassing the 50 million metric tons mark in oil output.

Environmental Concerns Linked to Oil Production within the Above Nations:

• Spills: Oil production in these nations can lead to accidental spills, releasing large quantities of crude oil into the environment, which can have devastating impacts on aquatic ecosystems, coastal areas, and local communities.
  • For instance, the Deepwater Horizon oil drilling platform in the Gulf of Mexico exploded in 2010, resulting in the largest oil spill in offshore drilling history.
• Air Pollution: The oil industry’s operations contribute to air pollution through the release of harmful emissions, including sulfur dioxide and nitrogen oxides, which can lead to respiratory problems and smog formation in nearby regions. For example, Gas Flares from Venezuela’s formerly blooming oil sector are causing pollution in nearby towns.
• Water Contamination: Oil production activities can contaminate water sources, such as rivers and groundwater, posing risks to aquatic life and affecting the availability of clean water for local populations. Leaking pipelines from Venezuela’s formerly thriving oil sector are polluting a significant lake.
  • In 2013, Pennsylvania (USA) recorded 398 complaints reporting that drilling activities related to oil or natural gas had led to contamination or other impacts on private water wells.
• Greenhouse Gas Emissions: Oil production releases significant amounts of CO2 into the atmosphere, a major greenhouse gas. This occurs due to various activities such as fossil fuel burning to generate electricity and power vehicles, as well as the operation of machinery. According to IEA, the production, transport and processing of oil and gas resulted in 5.1 billion tonnes (Gt) CO2-eq in 2022.
• Land Degradation and Deforestation:
  • Extensive drilling and infrastructure development associated with oil production can lead to soil erosion, and diminish the quality of land for agriculture.
  • Additionally, deforestation occurs as land is cleared for drilling sites and infrastructure.
  • For instance, in the USA, more than 12 million acres of public lands are allocated for fossil fuel production.

Some Effective Strategies for Sustainable Oil Production:

• Enhanced Oil Recovery (EOR) Techniques: Implement advanced EOR methods to maximize oil extraction from existing fields while minimizing environmental impact. For example, in the United States, CO2 is injected into oil reservoirs to enhance oil recovery while sequestering carbon underground.
• Reducing Flaring and Venting: Minimize the flaring and venting of associated gas during oil production. Norway has successfully reduced flaring emissions by more than 80% since the mid-1990s through strict regulations and the development of gas infrastructure to capture and utilize associated gas.
• Improved Water Management: Implement efficient water management practices to reduce the environmental impact of oil production. In Canada, oil sands operators are using water recycling and advanced treatment technologies to minimize water use and reduce the release of contaminated water into the environment.
• Biodiversity Conservation: Protect and restore natural habitats and biodiversity in oil-producing regions. For instance, Ecuador’s Yasuni National Park is an example where a portion of the country’s oil reserves is left untapped to preserve the park’s unique biodiversity.
• Transition to Renewable Energy: Invest in renewable energy sources and technologies to reduce dependence on fossil fuels and mitigate the environmental impact of oil production. The UAE, despite being a major oil producer, is investing in solar energy projects to diversify its energy mix and reduce greenhouse gas emissions.

The geographical distribution of major oil-producing nations highlights the concentration of resources in specific regions, shaping the global energy landscape. However, environmental concerns linked to oil production raise concerns about the sustainability of this vital industry. As the world continues to rely on oil, the imperative to balance production with environmental preservation becomes increasingly urgent.