While global crude oil production surged past 101 million barrels per day last year, the real story behind the numbers reveals an industry undergoing a dramatic reshuffle, grappling with immense revenues and equally immense environmental responsibilities.
Key Takeaways
- In 2023, global crude oil production reached 101.8 million barrels per day (bpd), marking a 4.9% increase from 2022
- Saudi Arabia's crude oil production averaged 9.6 million bpd in 2023, down from 10.7 million bpd in 2022 due to voluntary cuts
- The United States produced a record 13.3 million bpd of crude oil in 2023, surpassing Saudi Arabia as the world's top producer
- Global proved oil reserves stood at 1.73 trillion barrels at end-2022, sufficient for 50 years at current rates
- Venezuela holds the world's largest proved oil reserves at 303.8 billion barrels as of 2022
- Saudi Arabia's proved reserves were 267.0 billion barrels in 2022, with vast untapped Ghawar field resources
- The global oil and gas market was valued at $4.5 trillion in 2023 revenues, driven by high prices early in the year
- ExxonMobil reported $413.7 billion in revenue for 2022, the highest among oil majors due to elevated crude prices
- Brent crude oil averaged $82.17 per barrel in 2023, down 20% from 2022's $100.93 average
- Global oil and gas employment totaled 12.3 million jobs in 2023, with 2.7 million direct in upstream
- The US oil and gas sector employed 1.7 million workers in 2023, Texas accounting for 450,000 jobs
- Saudi Aramco employed 75,000 staff in 2023, with 40% in technical and engineering roles
- Oil and gas contributed 7.5% to global CO2 emissions in 2022, totaling 4.5 GtCO2 from operations
- Methane emissions from oil and gas operations were 80 million tonnes in 2022, 35% above IEA benchmarks
- US flaring intensity in oil production fell to 1.7% of gas output in 2023 from 3.5% in 2019
Global oil production rose in 2023, led by record U.S. output and shifting market leadership.
Economic and Market
- The global oil and gas market was valued at $4.5 trillion in 2023 revenues, driven by high prices early in the year
- ExxonMobil reported $413.7 billion in revenue for 2022, the highest among oil majors due to elevated crude prices
- Brent crude oil averaged $82.17 per barrel in 2023, down 20% from 2022's $100.93 average
- OPEC countries generated $1.1 trillion in oil export revenues in 2022, accounting for 40% of global total
- Chevron's upstream segment earned $37.6 billion in net income in 2022 from oil and gas sales
- Global oil demand grew by 2.3 million bpd in 2023 to 102.8 million bpd, led by China and India
- Shell's LNG trading division generated $3.2 billion profit in 2023 amid volatile markets
- The Permian Basin rig count averaged 320 in 2023, supporting $150 billion in investments
- TotalEnergies' oil and gas production revenue was €218 billion in 2022, boosted by European refining margins
- BP's net debt reduced to $22.6 billion by end-2023 after divesting non-core assets for $15 billion
- The oilfield services market size reached $265 billion in 2023, with Schlumberger leading at 20% share
- Occidental Petroleum's net income soared to $12.5 billion in 2023 from Permian acquisitions
- LNG spot prices averaged $15/MMBtu in Asia 2023, 40% below 2022 peaks
- Diamondback Energy's well costs in Permian dropped to $6.5 million per lateral in 2023
- Global refining margins peaked at $15/bbl crack spread in Q1 2023 before normalizing to $8/bbl
- ConocoPhillips acquired Marathon Oil for $22.5 billion in 2023, adding 1.4 billion boe reserves
- Pioneer Natural Resources fetched $59.5/bbl realized oil price in 2023 pre-Exxon deal
- SLB's revenue grew 13% to $33.1 billion in 2023, driven by international projects
- Weatherford's EBITDA margin expanded to 22% in 2023 from single-digit pre-bankruptcy
- Global upstream M&A deals totaled $150 billion in 2023, highest since 2017
- EOG Resources' drilling efficiency improved 20% in 2023, averaging 2,500 ft/day ROP
- The industry's R&D spending reached $18 billion in 2023, 30% on digital and AI tech
Economic and Market Interpretation
It appears the global thirst for hydrocarbons remains quite profitable, even as the barrels and margins ebb and flow with geopolitical and economic tides.
Environmental and Regulatory
- Oil and gas contributed 7.5% to global CO2 emissions in 2022, totaling 4.5 GtCO2 from operations
- Methane emissions from oil and gas operations were 80 million tonnes in 2022, 35% above IEA benchmarks
- US flaring intensity in oil production fell to 1.7% of gas output in 2023 from 3.5% in 2019
- Global offshore oil spill volume was 1,200 barrels in 2023, lowest in decade per IOGP data
- Saudi Aramco's Scope 1 and 2 emissions totaled 220 million tonnes CO2e in 2022, with 10% reduction target by 2030
- EU's Carbon Border Adjustment Mechanism imposed $50/tonne levy on oil imports starting 2026, impacting 20% of global trade
- Water usage in Permian Basin fracking averaged 15 million gallons per well in 2023, recycled at 70%
- Norway's oil platforms achieved zero routine flaring since 2005, saving 1 million tonnes CO2 annually
- Global oil tanker scrubber installations reached 4,500 by 2023, reducing SOx emissions by 80%
- BP's net zero plan includes $5 billion investment in CCUS by 2030, capturing 15 MtCO2/year
- Seismic activity linked to fracking occurred at 2.5 magnitude average in Oklahoma 2023, down 50% post-regulation
- ExxonMobil's Guyana operations emitted 0.5 kg CO2e per barrel in 2023, 75% below global average
- Global oil and gas flaring released 140 bcm gas in 2023, equivalent to 350 MtCO2
- EU ETS carbon price averaged €85/tonne in 2023, covering 40% of refineries' emissions
- Brazil's pre-salt fields recycle 90% produced water, saving 200 million m3 annually 2023
- Global oil spill detection via satellite covered 80% of high-risk areas in 2023
- Total's Angola Block 17 CO2 intensity at 8 kg/boe in 2023, best-in-class deepwater
- US EPA regulations cut VOC emissions from storage tanks by 60% since 2016 to 2023
- CCUS projects captured 43 MtCO2 globally in 2023, 20% from oil/gas enhanced recovery
- Nigeria's Niger Delta oil spills totaled 1,000 barrels in 2023, down 50% from 2019
- IMO 2020 sulfur cap reduced ship emissions by 75% for 5,000 oil tankers in 2023
- Eni's biodiesel blending reached 5% in refineries 2023, cutting 2 MtCO2 equivalent
Environmental and Regulatory Interpretation
The industry presents a portrait of stark contradictions: making significant strides in emission controls and spill prevention while still grappling with the fundamental reality that its core operations remain a massive, albeit slightly cleaner, contributor to the global carbon ledger.
Production and Output
- In 2023, global crude oil production reached 101.8 million barrels per day (bpd), marking a 4.9% increase from 2022
- Saudi Arabia's crude oil production averaged 9.6 million bpd in 2023, down from 10.7 million bpd in 2022 due to voluntary cuts
- The United States produced a record 13.3 million bpd of crude oil in 2023, surpassing Saudi Arabia as the world's top producer
- Russia's oil production stood at 10.5 million bpd in 2023, impacted by Western sanctions and OPEC+ agreements
- Iraq's crude oil output increased to 4.5 million bpd in 2023, driven by new fields in the southern region
- Canada's oil sands production hit 3.3 million bpd in 2023, representing 55% of national output
- Brazil's pre-salt oil production grew to 3.2 million bpd in 2023, up 12% year-over-year
- Norway's crude oil production declined to 1.9 million bpd in 2023 from 2.0 million in 2022 due to aging fields
- The UAE produced 4.1 million bpd of crude oil in 2023, boosted by expansions in ADNOC fields
- China's domestic crude production was 4.2 million bpd in 2023, with Daqing field contributing 0.8 million bpd
Production and Output Interpretation
While the world’s thirst for crude oil grew by nearly 5% last year, the map of who’s holding the pitcher redrew itself dramatically, with the U.S. pumping a record amount as Saudi Arabia politely stepped back, proving that geopolitics and voluntary cuts can rearrange the leaderboard faster than a Texas wildcatter can strike a new well.
Reserves and Exploration
- Global proved oil reserves stood at 1.73 trillion barrels at end-2022, sufficient for 50 years at current rates
- Venezuela holds the world's largest proved oil reserves at 303.8 billion barrels as of 2022
- Saudi Arabia's proved reserves were 267.0 billion barrels in 2022, with vast untapped Ghawar field resources
- Iran's oil reserves totaled 208.6 billion barrels in 2022, mostly onshore despite sanctions
- Canada's oil sands reserves are estimated at 166.5 billion barrels recoverable, ranking fourth globally
- Iraq's proved reserves reached 145.0 billion barrels in 2022, concentrated in supergiant fields like Rumaila
- UAE's reserves were 111.0 billion barrels in 2022, with ongoing exploration in Abu Dhabi
- Russia's reserves stood at 107.8 billion barrels in 2022, including Arctic offshore potential
- Kuwait's proved oil reserves were 101.5 billion barrels in 2022, Burgan field holding 70 billion
- Libya's reserves totaled 48.4 billion barrels in 2022, with exploration resuming post-conflict
- Global oil reserves-to-production ratio was 49.5 years in 2022 per BP review
- Guyana's proved reserves surged to 11.6 billion barrels by end-2023 from Liza discoveries
- Namibia's offshore Orange Basin holds 2.5 billion barrels recoverable post-2022 finds
- Argentina's Vaca Muerta shale reserves estimated at 16 billion barrels oil equivalent
- Suriname's Block 58 reserves appraised at 700 million barrels after Kronos-1 discovery
- Mozambique's Rovuma LNG reserves certified at 85 Tcf gas, equivalent to 15 billion barrels oil
- Senegal's Sangomar field holds 500 million barrels recoverable, first oil in 2024
- Alaska's NPR-A estimated undiscovered resources at 17.6 billion barrels oil
- Global deepwater discoveries added 5 billion barrels in 2023, led by Africa and Brazil
Reserves and Exploration Interpretation
It seems the planet keeps whispering "we're running out" while simultaneously winking and handing us another fifty-year supply of liquid assets.
Workforce and Operations
- Global oil and gas employment totaled 12.3 million jobs in 2023, with 2.7 million direct in upstream
- The US oil and gas sector employed 1.7 million workers in 2023, Texas accounting for 450,000 jobs
- Saudi Aramco employed 75,000 staff in 2023, with 40% in technical and engineering roles
- Halliburton's global workforce was 45,000 in 2023, operating in 80 countries with focus on Middle East
- Norway's oil industry supported 200,000 jobs in 2023, 18% of national employment
- Baker Hughes had 58,000 employees worldwide in 2023, with 25% in digital solutions
- The global rig fleet numbered 2,300 active units in 2023, up 15% from 2022 lows
- Offshore workers in the Gulf of Mexico totaled 100,000 in 2023, with average salary $120,000
- Petrobras employed 45,000 in Brazil's oil sector in 2023, investing $10 billion in training
- The industry's lost time injury frequency rate improved to 0.18 per million man-hours in 2023
- Over 1,200 new wells were drilled globally in Q4 2023, with 85% success rate in unconventional plays
- Global oilfield equipment spending hit $120 billion in 2023, led by drilling and completion tools
- ADNOC's workforce grew 10% to 52,000 in 2023, emphasizing Emiratization at 25% locals
- The average oil rig crew size is 120 workers per platform, rotating 28/28 days offshore in 2023
- Global active drilling rigs increased to 1,900 in 2023, with North America at 620
- QatarEnergy LNG employed 15,000 workers for North Field expansion in 2023
- The average tenure of oilfield engineers is 15 years, with 25% women in US roles 2023
- Equinor's Johan Sverdrup field operates with 120 unmanned drones daily, reducing crew by 30%
- Global frac crew utilization hit 95% in Permian Q4 2023 amid supply chain easing
- Total safety incidents in IOGP members dropped 15% to 1.2 per million hours in 2023
- Shell's Prelude FLNG platform houses 360 workers rotating 2 weeks on/off in 2023
- US BLS reports oil/gas extraction wages averaged $120,000 annually in 2023
- Maersk Drilling's jack-up fleet utilization was 92% in 2023, contracting 10 rigs long-term
- Automation reduced subsea ROV operators needed by 40% on北海 fields in 2023
- Global well completion crews totaled 5,000 active teams in 2023, focused on shale
- Aramco's digital twin tech cut maintenance crew hours by 25% across Ghawar in 2023
- Chevron's Gorgon LNG project peak construction employed 10,000 in Australia 2016-2023
Workforce and Operations Interpretation
The world's oil and gas industry is a massive, tech-driven orchestra of 12.3 million people, from the 120 workers on a single rig platform to the digital engineers cutting their hours with a digital twin, all conducting a precarious but essential symphony of energy, safety, and paychecks that still averages $120,000 a year.
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