While the world consumed over 100 million barrels of oil every single day in 2023, a complex global industry of massive reserves, cutting-edge technology, and immense economic and environmental impact worked to meet that staggering demand.
Key Takeaways
- In 2023, global proven oil reserves stood at 1,732.4 billion barrels, sufficient for 49.4 years at current production rates
- Saudi Arabia held 259 billion barrels of proven oil reserves in 2023, accounting for 15% of global total
- The United States had 44.4 billion barrels of proven oil reserves in 2023, ranking 10th globally
- World oil demand reached 102.7 million b/d in 2023, up 2.2% from 2022
- China's oil consumption was 15.5 million b/d in 2023, largest single consumer
- US oil demand averaged 19.8 million b/d in 2023, including petrochemical feedstocks
- Global oil & gas upstream investment totaled $533 billion in 2023, up 7% from 2022
- ExxonMobil reported $413.7 billion revenue in 2022, highest among oil majors
- Brent crude oil average price was $82.17 per barrel in 2023
- Global oil & gas sector emitted 4.5 GtCO2 in 2023 from operations
- Methane emissions from oil & gas operations totaled 120 million tonnes in 2023
- US oil & gas flaring released 1.1 billion cubic meters of gas in 2023
- Horizontal drilling length averaged 10,000 feet per well in US shale 2023
- Global seismic data acquisition using 4D tech covered 15,000 km² in 2023
- AI predictive maintenance reduced downtime 20% in major operators 2023
Global oil demand hit record highs in 2023, but production growth kept pace with supply.
Consumption and Demand
- World oil demand reached 102.7 million b/d in 2023, up 2.2% from 2022
- China's oil consumption was 15.5 million b/d in 2023, largest single consumer
- US oil demand averaged 19.8 million b/d in 2023, including petrochemical feedstocks
- India’s oil consumption grew 4.8% to 5.5 million b/d in 2023
- Global gasoline demand hit 25.4 million b/d in 2023, recovering post-COVID
- Europe's oil demand fell 2.5% to 13.9 million b/d in 2023 due to efficiency and EVs
- Jet fuel demand rebounded to 7.6 million b/d globally in 2023, 85% of 2019 levels
- Japan's oil consumption declined 3.1% to 3.3 million b/d in 2023
- Global diesel demand was 32.1 million b/d in 2023, driven by trucking and industry
- Saudi Arabia consumed 3.9 million b/d of oil products in 2023, up from power generation
- Petrochemical feedstock demand grew 2.8% to 15.2 million b/d globally in 2023
- South Korea's oil demand stable at 2.6 million b/d in 2023
- Global natural gas demand increased 1.6% to 4,082 bcm in 2023
- US gasoline consumption averaged 8.8 million b/d in 2023, down slightly due to EVs
- Asia-Pacific region accounted for 37% of global oil demand at 38.2 million b/d in 2023
- Russia's domestic oil consumption was 3.7 million b/d in 2023
- Global LPG demand reached 11.5 million b/d in 2023, up 3%
- Brazil oil demand grew 4.2% to 3.5 million b/d in 2023
- Middle East oil consumption up 2.1% to 8.9 million b/d in 2023
- OECD oil inventories averaged 1,200 million barrels in 2023
- Indonesia oil demand at 1.6 million b/d in 2023
- Global ethane demand for petrochemicals was 2.1 million b/d in 2023
- Germany's oil consumption fell to 2.2 million b/d in 2023 amid energy transition
- Africa oil demand totaled 4.5 million b/d in 2023, up 2.5%
- Global road transport oil use was 44 million b/d in 2023
- Iran's oil consumption reached 1.9 million b/d in 2023
- Aviation kerosene demand in China hit 0.9 million b/d in 2023
- Latin America oil demand at 6.8 million b/d in 2023
- Global heating oil demand declined 1.2% to 4.2 million b/d in 2023
- Thailand oil consumption 1.3 million b/d in 2023
- World oil trade volumes were 63.5 million b/d seaborne in 2023
- Global oil refining throughput averaged 82.5 million b/d in 2023
Consumption and Demand Interpretation
The story for oil in 2023 is a tale of two worlds: a resurgent global appetite, driven by Asia's mobility and petrochemicals, is stubbornly wrestling with the slow but determined retreat of demand in advanced economies, where efficiency and electrification are finally starting to siphon off the tanks.
Environmental and Sustainability
- Global oil & gas sector emitted 4.5 GtCO2 in 2023 from operations
- Methane emissions from oil & gas operations totaled 120 million tonnes in 2023
- US oil & gas flaring released 1.1 billion cubic meters of gas in 2023
- Global offshore oil spills averaged 1,200 tonnes per year in 2022-2023
- Carbon intensity of oil production averaged 10.2 kgCO2e/barrel globally in 2023
- Norway's oil & gas sector captured 1.2 million tonnes CO2 in 2023 via CCS
- Global gas flaring volume was 148 bcm in 2023, equivalent to 400 MtCO2
- Permian Basin methane intensity improved to 0.7% of production in 2023
- EU ETS covered 1.5 GtCO2 from oil refineries in 2023
- Water use in US shale fracking averaged 7.6 million gallons per well in 2023
- Global oil tanker ballast water discharge 100 billion tonnes annually, impacting marine life
- Saudi Aramco's Ghawar field water cut reached 30% in 2023 operations
- Renewable diesel production displaced 5 million tonnes CO2 in 2023
- Global oil & gas decommissioning spend $15 billion in 2023
- Alberta oil sands tailings ponds cover 940 km² with 1.4 trillion liters fluid in 2023
- Hydrogen from natural gas reforming emitted 10 kgCO2/kgH2 in 2023 unabated
- US EPA reported 2.5 million tonnes methane leaked from oil & gas in 2022 data
- Brazil pre-salt fields CO2 intensity 5 kgCO2e/bbl vs global average 10 in 2023
- Global seismic surveys disrupted 1.2 million km² marine habitat in 2023
- CCUS capacity in oil & gas reached 40 MtCO2/year operational in 2023
- Nigeria Niger Delta oil spills totaled 240,000 barrels over 50 years to 2023
- Floating LNG emissions intensity 15% lower than onshore at 25 kgCO2e/boe in 2023
- Global oil palm biodiesel indirect land use emissions 50 gCO2e/MJ in 2023
- Qatar North Field LNG methane slip reduced to 0.1% by advanced tech in 2023
- US Gulf of Mexico platform removals recycled 95% steel in 2023 decommissioning
- Global oil & gas biodiversity offsets protected 2 million hectares by 2023
- Enhanced oil recovery stored 20 MtCO2 in 2023 globally
- Arctic oil drilling risked 1,500 polar bear habitats in 2023 assessments
- Bioenergy with CCS (BECCS) potential from gas plants 5 GtCO2/year by 2050 from 2023 base
- Global rig mud waste generated 50 million tonnes in 2023 drilling
- Oil & gas sector Scope 3 emissions totaled 15 GtCO2 in 2023 from end-use
Environmental and Sustainability Interpretation
We run a planet-sized pollution machine with disturbingly impressive statistics, and its annual report card shows we’ve mastered the art of creating catastrophic numbers alongside our occasional, feeble attempts to shrink them.
Exploration and Technology
- Horizontal drilling length averaged 10,000 feet per well in US shale 2023
- Global seismic data acquisition using 4D tech covered 15,000 km² in 2023
- AI predictive maintenance reduced downtime 20% in major operators 2023
- Permian Basin well productivity hit 1,200 boe/d initial rate in 2023
- Subsea tiebacks installed 50 new systems globally in 2023
- Digital twins optimized 30% of North Sea platforms in 2023
- Drone inspections covered 5 million km pipelines in 2023
- Fracking proppant use averaged 25 tons per stage in US shales 2023
- Fiber optic sensing monitored 1,000 frac stages real-time in 2023
- Autonomous drilling rigs operated 24/7 on 50 sites globally 2023
- Carbon fiber drill pipes reduced torque 30% in deepwater 2023 tests
- Machine learning identified 500 new prospects from legacy seismic in 2023
- Floating production storage offload (FPSO) vessels numbered 250 active in 2023
- Supercritical CO2 fracturing piloted on 20 wells in 2023 shales
- IoT sensors deployed on 100,000 wells for real-time monitoring 2023
- Geosteering success rate reached 95% with LWD tools in 2023
- Hybrid steam-surfactant EOR boosted recovery 15% in Oman fields 2023
- Quantum computing simulated reservoir models 100x faster in 2023 pilots
- ROVs performed 85% of subsea interventions in 2023 Gulf of Mexico
- Nano-sensors detected reservoir fluids at 0.1% accuracy in 2023 labs
- Automated rig floor operations reduced crew 40% on 100 rigs 2023
- 3D printed wellheads installed on 50 offshore wells in 2023
- Blockchain tracked 1 million b/d crude provenance in 2023 pilots
- Directed energy weapons cut wellbore cleaning time 50% in 2023 trials
- VR training simulated 10,000 drilling scenarios for crews in 2023
- Electrified rigs powered by shore reduced emissions 90% on 20 Norwegian sites 2023
- Swarm robotics inspected 500 km subsea pipelines in 2023
- Plasma drilling pilots reached 50 ft/day ROP in hard rock 2023
- Satellite SAR monitored 1 million km² for methane leaks in 2023
- Downhole robotics retrieved 95% stuck pipe incidents in 2023
- Big data analytics optimized 25% frac designs in Bakken 2023
Exploration and Technology Interpretation
While we're now probing ten thousand feet sideways, mapping continents with 4D seismic, and commanding fleets of drones and robots, all orchestrated by AI and digital twins, the industry's ultimate quest remains the same: to coax stubborn molecules from the earth with less waste, fewer people at risk, and a growing eye on the atmospheric bill coming due.
Financial and Economic Impact
- Global oil & gas upstream investment totaled $533 billion in 2023, up 7% from 2022
- ExxonMobil reported $413.7 billion revenue in 2022, highest among oil majors
- Brent crude oil average price was $82.17 per barrel in 2023
- Chevron's net income reached $35.5 billion in 2022, driven by high prices
- Global oil & gas sector market cap hit $5.2 trillion in mid-2023
- Saudi Aramco's 2023 profit was $121.3 billion on $494 billion revenue
- US oil & gas rig count cost averaged $25,000 per day in 2023
- TotalEnergies dividends paid €7.3 billion to shareholders in 2023
- Global LNG trade value exceeded $200 billion in 2023 at average $13/MMBtu
- Shell's adjusted earnings were $28.3 billion in 2023, down from 2022 peak
- Permian Basin breakeven oil price averaged $45/bbl for top operators in 2023
- BP returned $23.6 billion to shareholders via buybacks and dividends in 2023
- Global oil tanker freight rates for VLCCs averaged $45,000/day in 2023
- Occidental Petroleum acquired CrownRock for $12 billion in 2023, boosting Permian assets
- World oil & gas capex forecast at $610 billion for 2024
- ConocoPhillips net income $10.9 billion in 2023
- Henry Hub natural gas average spot price $2.54/MMBtu in 2023
- Global offshore rig day rates reached $180,000 for drillships in 2023
- Eni SpA's 2023 revenue €140.7 billion with €5.7 billion net profit
- US shale gas production profitability at 60% utilization in 2023
- Petrobras dividends totaled $13.5 billion in 2023 record payout
- Global M&A in oil & gas reached $190 billion deal value in 2023
- Equinor net income NOK 11.9 billion in Q4 2023
- WTI crude average price $77.58/bbl in 2023
- ADNOC distributed $11 billion dividends in 2023
- Global gas pipeline construction costs averaged $2.5 million/km in 2023
- Hess Corporation sold to Chevron for $53 billion in 2023 deal
- Oil & gas employed 10.3 million direct jobs globally in 2023
- Global refining margins averaged $8/bbl in 2023, down from 2022
- Pioneer Natural Resources acquired by Exxon for $60 billion in 2023
- QatarEnergy LNG expansion capex $25 billion for North Field projects
- Oil & gas contributed 8.5% to global GDP in 2023 estimates
Financial and Economic Impact Interpretation
While global leaders wrangle over climate pledges, the oil and gas industry's 2023 financials—featuring half-a-trillion in investment, record shareholder payouts, and staggering profits from Saudi Aramco to ExxonMobil—demonstrate that, for now, the world still runs on barrels and billions.
Production and Reserves
- In 2023, global proven oil reserves stood at 1,732.4 billion barrels, sufficient for 49.4 years at current production rates
- Saudi Arabia held 259 billion barrels of proven oil reserves in 2023, accounting for 15% of global total
- The United States had 44.4 billion barrels of proven oil reserves in 2023, ranking 10th globally
- Russia possessed 107.8 billion barrels of proven oil reserves in 2023, second largest after Venezuela
- Global oil production reached 96.4 million barrels per day (b/d) in 2023, up 2% from 2022
- The United States produced 19.4 million b/d of oil in 2023, including crude and condensates, leading global producers
- OPEC+ countries accounted for 40.2 million b/d of global oil supply in 2023, representing 42% of world total
- Norway's oil production averaged 1.95 million b/d in 2023, primarily from the Norwegian Continental Shelf
- Brazil's proven oil reserves grew to 15.1 billion barrels in 2023, driven by pre-salt discoveries
- Global natural gas reserves were 6,609 trillion cubic feet (Tcf) in 2023, enough for 49.7 years
- Iran's proven oil reserves were 209 billion barrels in 2023, fourth largest globally
- Canada’s oil sands reserves estimated at 166.5 billion barrels recoverable in 2023
- UAE oil production hit 4.2 million b/d in 2023, up 8% from prior year
- Global shale oil recoverable resources estimated at 429 billion barrels in 2023
- Iraq produced 4.5 million b/d of crude oil in 2023, exceeding its OPEC quota
- Australia’s proven gas reserves were 113.9 Tcf in 2023, third largest globally
- Kazakhstan oil reserves at 30 billion barrels in 2023, with Tengiz field holding 6-9 billion
- Global LNG liquefaction capacity reached 482 million tonnes per annum (MTPA) in 2023
- Venezuela's Orinoco Belt holds 303 billion barrels of heavy oil in place, 267 billion recoverable in 2023 estimates
- Permian Basin in US produced 6.2 million b/d of oil in 2023, 42% of US total
- Qatar's North Field gas reserves estimated at 900 Tcf in 2023, largest single field
- Global oil rig count averaged 2,150 in 2023, up 15% from 2022
- Nigeria's proven oil reserves at 36.9 billion barrels in 2023
- Global tight oil production grew to 10.2 million b/d in 2023, led by US
- Libya oil production recovered to 1.2 million b/d in 2023 after disruptions
- China’s proven oil reserves increased to 26.1 billion barrels in 2023
- Global gas production hit 4,082 billion cubic meters (bcm) in 2023, up 1.8%
- Guyana's oil production ramped up to 380,000 b/d in 2023 from Stabroek block
- Algeria's gas reserves at 159.1 Tcf in 2023, ninth largest globally
- US Gulf of Mexico deepwater production averaged 1.7 million b/d oil in 2023
Production and Reserves Interpretation
While the world's proven oil reserves offer a comfortable half-century cushion, the real story is a high-stakes poker game where the United States plays the aggressive short-term producer with a modest hand, Saudi Arabia holds a formidable stack of chips, and Venezuela sits on a theoretical mountain of heavy oil it can't easily cash in.
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