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The US leads the global crude oil market

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In 2022, the United States accounted for 14.7% of the global crude oil market production.

The United States leads as the top crude oil producer, closely followed by Saudi Arabia at 13.2% and Russia at 12.7%. While the pandemic had a significant impact on the market, leading to a decrease in production, there was a notable 6% increase from 2021 to 2022.

Within the US, Texas played a prominent role, producing 42.5% of the country’s crude oil, securing Texas as the leading state in the market. The primary crude oil producers in the US are located in the southern region, including Texas, New Mexico (13.3%), and the Gulf of Mexico. This is partly due to ongoing investments by producers to enhance drilling technology and boost production.

When examining the companies supplying crude oil, they can be categorized into three types:

  • International oil companies (IOCs): These are fully invested entities with the primary objective of generating profits, exemplified by companies like Royal Dutch Shell.

  • National oil companies (NOCs): These entities receive financial support from the government and often operate as extensions of a government or government agency, as seen with Pemex in Mexico.

  • NOCs with strategic and operational autonomy: These entities represent a hybrid between IOCs and NOCs. They aim to make profits while aligning their objectives with the goals of their respective countries, similar to Petrobras in Brazil.

In closing, the U.S.’s 14.7% stake in global crude oil production spearheaded by Texas sets the stage for a dynamic future. Challenges and potential strengths should be analyzed in order to seize new opportunities in the crude oil industry.

Source: U.S. Energy Information Administration, 2023 “Oil and petroleum products explained Where our oil comes from”, eia.gov, September 21, 2023, https://www.eia.gov/energyexplained/oil-and-petroleum-products/where-our-oil-comes-from.php