The global production of oil and petroleum liquids is estimated to have reached an average of 103 million barrels per day in 2024. That’s an increase of approximately 900,000 for the year, which is a relatively modest year-over-year increase, owing mostly to a slowdown in China’s economic growth.

While America is the global leader in both oil and gas production, several other nations are major producers, with large multinational companies driving extraction. This article will discuss the top oil and gas-producing nations, and their production compared to America’s.

The Top 5 Oil-Producing Nations In The World 

1) America

America is the world’s largest oil-producing country, with an output of 21.91 million barrels per day in 2023. This is double the output of the next largest oil-producing nation. America is also the top producer of lease condensate and crude oil, with Texas being the country’s largest oil-producing state.

America is often described as a swing producer for its production fluctuations alongside market prices.

America is also a major oil consumer. In 2023, it consumed an average of 20.5 million barrels per day of petroleum products.

2) Saudi Arabia

In 2023, Saudi Arabia produced 11.1 million oil barrels per day, making it the second-largest producer in the world. As a major OPEC member, Saudi Arabia is also the world’s largest petroleum exporter. It is home to 17% of the world’s proven petroleum reserves.

The Saudi economy is heavily reliant on its petroleum sector. It accounts for roughly 42% of its GDP, 87% of budget revenues, and 90% of its export earnings.

3) Russia

Despite economic sanctions and trade restrictions imposed on it since its invasion of Ukraine, Russia remains one of the world’s top oil producers. In 2023, it produced 10.75 million barrels of oil daily, around 11% of the global total.

Most of Russia’s reserves are between West Siberia’s Central Siberian Plateau and the Ural Mountains. Russia has responded to export bans from countries like the US, UK, and Canada by meeting heavy demand from China and India.

4) Canada

Canada is fourth, producing 5.7 million barrels per day in 2023, 6% of the global share. Much of its oil production comes from the oil sands of Alberta, Atlantic offshore fields, and the Western Canada Sedimentary Basin.

The majority of Canadian energy exports are to America. In 2023, 60% of American crude imports originated from Canada, a 27% increase compared to 2013.

5) China

China is the fifth-largest oil producer, responsible for 5.26 million barrels per day in 2023, around 5% of total production.

The northeast and north-central regions supply most Chinese domestic production. Mature fields such as Daqing have been heavily drilled for oil for many decades, so companies are heavily investing in enhanced oil recovery techniques, including polymer, stream flooding, and water injection, to offset some of the production declines.

Additionally, China is now the second largest consumer behind the US.

The Top 5 Natural Gas-Producing Nations In The World 

1) America

America leads global natural gas production, producing 1.35 trillion cubic meters, nearly a quarter of total production in 2023. It accounts for 25% of global production. This output has increased by over 350 billion cubic meters in the past decade, largely due to increasing coal costs and advancements in fracking technologies.

It’s also the largest consumer of natural gas, with demand totalling 886.5 billion cubic meters in 2023. Most of this demand was for home heating and electricity generation. Appalachia leads production, contributing 29% of total output.

2) Russia

Russia is the second-largest exporter and producer of natural gas, at 586.4 billion cubic meters in 2023. It boasts the world’s largest known natural gas reserves. Gazprom, the state-owned energy group, is reported to hold a 16.3 percent share of global natural gas reserves.

European rejection of natural gas following its invasion of Ukraine led to a 41% decrease in revenues in the first three quarters of 2023.

3) Iran

Iran is third, producing 251.7 billion cubic meters. It also has the second-largest natural gas reserves (shared with Qatar), but its infrastructure severely lags behind America’s and Russia’s.

Iran’s production has tripled in the past decade, making it the Middle East’s largest producer. With a US $80 billion investment in its gas fields, Iran plans to boost its production capacity by 30% within five years.

4) China

In 2023, China produced 234.3 billion cubic meters of natural gas, which has grown by 92.3% since 2013, largely thanks to government incentives to transition away from coal to reduce air pollution and meet emissions targets.

However, China still relies on imports from Australia, Turkmenistan, America, Malaysia, and Russia to meet half of its demand. Shale, coal-bed methane, and natural gas hydrates are among the unconventional gas sources that account for 43% of China’s total output.

5) Canada

Canada has a proven natural gas reserve of 83 trillion cubic feet and produced 190.3 billion cubic meters in 2023. The Western Canadian Sedimentary Basin is the primary source of Canadian gas production, and significant offshore fields are located near Newfoundland and Nova Scotia.

Looking Forward…

For the next decade, America is near-certain to continue leading oil and natural gas production given the strength of its current lead. However, Russia, China, and Saudi Arabia, in particular, will continue to be extremely significant and influential players in global energy supply.

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Otherwise known as petroleum, oil is one of the most essential resources in the world. It’s required for gasoline, diesel, and jet fuel production, making it no surprise that it’s a colossal part of several countries’ economies.

Despite this, the global oil market has experienced a turbulent few years since the start of the COVID-19 pandemic, with wild price fluctuations evidencing the volatility.

In spite of this uncertainty, the US remains the largest oil-producing country in the world. In 2023, it took the top spot for the sixth year in a row with an output of 21.01 million barrels. States like Texas and New Mexico drive this production, but it fluctuates alongside market prices, making the country a swing producer. America is also a big oil consumer, consuming an average of 20.5 million barrels per day in 2023.

In 2022, just five states combined accounted for around 72% of America’s total oil production. If you’re intrigued by this, be sure to read on to learn about the top five oil-producing states in America.

The Top 5 Oil-Producing States in America 

1) Texas

The Lone Star State produced a whopping 5.41 million barrels per day of oil, accounting for 42.6% of America’s total production. Production has surged in the Permian Basin, leading to a sizeable five-year increase of 29.3% in the state.

In 2023, Texas broke America’s state record for oil production, producing 1.92 billion barrels, 51 million more than the previous record. The same year, it also broke the record for natural gas production by 13%, producing 12.01 trillion cubic feet.

2) New Mexico

New Mexico is the country’s second-largest oil producer, with 1.79 million barrels daily, giving it a 14.1% share of total production. The state has also benefitted from the Permian Basin effect by an incredible 190% surge over the past five years. Two of the state’s counties in the Basin accounted for 17% of all onshore oil output in the contiguous US last year.

Because of this natural gas production in the Basin, New Mexico’s annual state government income has increased by almost 50% over the past four years. The general fund surplus from this production through June 2025 was estimated at $3.5 billion in December 2023.

3) North Dakota

The Roughrider State is America’s third-largest oil-producing state, with 1.13 million barrels per day, which has decreased by 6.9% over the past five years. However, North Dakota’s production increased by 17% in 2022-2023, accounting for 8.9% of the country’s total oil production.

North Dakota’s Bakken Shale Formation has a large shale oil reserve and is home to Tioga, the state’s oil capital, in the middle of the Bakken fields. The freezing temperatures the state experiences in winter can disrupt production, but overall, production is predicted to increase.

4) Colorado

The Centennial State produces 0.44 million barrels per day, making it America’s fourth-largest oil-producing state. Over the past five years, its share of total production has increased by 1.2%, accounting for 3.5% of total American production.

Colorado’s increase in oil production over the last decade can be attributed primarily to the increased use of horizontal drilling and hydraulic fracturing. Technological advances have also allowed fewer rigs to produce more oil, with only 16 oil and gas rigs operating in the state today compared to 32 in 2019.

5) Alaska

The Last Frontier produces 0.44 million barrels of oil daily, accounting for 3.4% of the country’s total share. Despite experiencing an 11.2% decrease in production over the past five years, it’s still the fifth-largest producer in the country. It also has the fourth-largest crude oil reserves in the country, at 3.2 billion barrels, so it will likely remain a principal producer for years to come.

Much of Alaska’s oil comes from Prudhoe Bay, North America’s largest conventional oil field. The North Slope, the northernmost county in America, contains over a dozen other producing fields. Two major new developments are being developed on the North Slope, with the $2.6 billion Pikka project estimated to contribute 80,000 barrels daily upon completion.

So, That’s A Wrap!

America remains the world’s largest oil producer and a major consumer and importer of the resource. Despite challenges from the pandemic and geopolitical tensions, the country is poised to continue as a major oil producer with new oilfields approved by the next administration.  The oil & gas industry is looking bullish in the U.S. for the foreseeable future.

If you’re interested to participate in the movement to tokenize investment in U.S. oil and gas properties, democratizing and globalizing access to these historically inaccessible investment properties, then check out the latest token offering on our home page or read more on our blog.