Oil supplies some basic information can help explain the drop in prices and the nature of the cartel

In order to make better sense out the sharp swings in the price of oil and the changing supply conditions it is very useful to have some data. I am reproducing a post from my older blog that I first posted in 2011 on precisely this. Oil prices peaked in 2008 at $147 per barrel they then fell towards the $50 mark and then recovered again to rise to about 100$ and have now fallen to $63

Monday, March 7, 2011

Oil and the global economy
Current events in the Middle East including the dramatic and tragic events in Libya have caused a spike in global petroleum prices with serious implications for the economic recovery now underway. Oil is often the key to understanding the history of the global economy. In order to understand it’s role and to make better sense of what is going on we need to know the basic data about this precious but diminishing resource. fortunately a lot of information is available , although it has the limitation that the principal source for the data are the oil companies themselves.

Let’s look at the data for production ,consumption and principal exports. All the data is assembled by the energy information agency of the U.S. Department of Energy.

Proven oil reserves by country billions of barrels

Saudi Arabia 264.3
Canada. 178.8
Iran. 132.5
Iraq. 115.0
Kuwait. 101.5
U.A.E. 97.8
Venezuela. 79.7
Russia. 60.0
Libya. 39.1
Nigeria. 35.9
U.S. 21.4
China. 18.3
Qatar. 15.2
Mexico. 12.9
Algeria. 11.4
Brazil. 11.2
Kazakhstan. 9.0
Norway. 7.7
Azerbaijan. 7.0
India. 5.8

Top 20 countries. 1224.5 (95 %)
rest of world. 68.1. (5%)
World total. 1292.6
note: Proved resources estimated with reasonable certainty to be recoverable with present technology and prices.

Oil production millions of barrels /day

1.Saudia Arabia. 10.72
2.Russia. 9.67
3.U.S. 8.37
4.Iran. 4.12
5.Mexico. 3.71
6.China. 3.64
7.Canada. 3.84
8.UA.E. 2.94
9.Venezuela. 2.81
10.Norway. 2.79
11.Kuwait. 2.67
12.Nigeria. 2.44
13.Brazil. 2.16
14. Iraq. 2.01

Libya. 1.65

Oil Consumption millions of barrels per day

1.U.S. 20.59
2. China 7.27
3. Japan 5.22
4. Russia 3.10
5. Germany 2.63
6. India 2.53
7. Canada 2.22
8. Brazil 2.12
9. South Korea 2.12
10.Saudi Arabia 2.07
11. Mexico 2.03
12.France 1.97
13. U.K. 1.82
14. Italy 1.71

Oil exporters millions barrels per day

1. Saudi Arabia 8.65
2. Russia 6.57
3. Norway 2.54
4.Iran 2.52
5. U.A.E. 2.52
6.Venezuela 2.2
7. Kuwait 2.15
8. Nigeria 2.15
9. Algeria 1.85
10. Mexico 1.68
11. Libya 1.52
12. Iraq 1.43
13. Angola 1.36
14. Kazakhstan 1.11

Oil net importers millions of barrels per day

1.U.S. 12.22
2. Japan 5.10
3. China 3.44
4. Germany 2.48
5. S. Korea 2.15
6. France 1.89
7. India 1.69
8. Italy 1.56
9. Spain 1.56
10. Taiwan 0.94

Source of U.S. Imports

Canada 11 %
Mexico 11
Saudi Arabia 9
Venezuela 8
Nigeria 7
Iraq 4
25 other countries 8


About haroldchorneyeconomist

I am Professor of political economy at Concordia university in Montréal, Québec, Canada. I received my B.A.Hons (econ.&poli sci) from the University of Manitoba. I also completed my M.A. degree in economics there. Went on to spend two years at the London School of Economics as a Ph.D. student in economics and then completed my Ph.D. in political economy at the University of Toronto. Was named a John W.Dafoe fellow, a CMHC fellow and a Canada Council fellow. I also was named a Woodrow Wilson fellow in 1968 after completing my first class honours undergraduate degree. Worked as an economist in the area of education, labour economics and as the senior economist with the Manitoba Housing and Renewal Corporation for the Government of Manitoba from 1972 to 1978. I also have worked as an economic consultant for MDT socio-economic consultants and have been consulted on urban planning, health policy, linguistic duality and public sector finance questions by the governments of Manitoba, Saskatchewan,the cities of Regina and Saskatoon, Ontario and the Federal government of Canada. I have also been consulted by senior leaders of the British Labour party, MPs from the Progressive Conservative party, the Liberal party and the New Democrats on economic policy questions. Members of the Government of France under the Presidency of Francois Mitterand discussed my work on public sector deficits. I have also run for elected office at the municipal level. I first began to write about quantitative easing as a useful policy option during the early 1980s.
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