Deep beneath the earth’s surface, there are various pockets of sandstone and shale in which oil reserves are created. Outside of the United States, there is an estimate that over 500 billion barrels of oil that is recoverable exists within reserves around the world; it has also been proven that over 1.346 trillion barrels of oil exist in the world as well, though it is impossible to measure any exact numbers. With that in mind, it’s also important to remember that it’s been estimated that only half of the world’s underground reserves have been discovered. There are likely still fifty percent of undiscovered underground oil reserves around the world, all of which are different sizes and have different production capabilities.

The History of Oil Reserves

Oil has been used for centuries, but in the mid-19th century, its use as fuel for kerosene lamps made the need for oil to skyrocket. Because of the demand for oil rising due to the spreading use of kerosene lamps, it became imperative to find a larger supply of oil that would fuel them. This supply was found in the country of Azerbaijan, which is now regarded as the world’s oldest oil producing region. Initially facilitated by the rising demand for oil for kerosene lamps, Azerbaijan has remained an important oil producing region into the modern day, with large companies like Chevron investing in joint ventures with its local companies.

Where Are the Biggest Oil Reserves?

Since 2016, Venezuela has consistently been listed as the country with the largest oil reserves. According to OPEC, the Organization of the Petroleum Exporting Countries, in 2024, the country of Venezuela has been listed as having over 303 billion barrels of oil in reserve. Saudi Arabia is second in the world, with over 260 billion barrels, followed by Iran in third with over 208 billion barrels. Other countries that are consistently in the top with the largest oil reserves include Canada at over 170 billion barrels, Iraq at over 157 billion barrels, and Russia at about 143 billion barrels. There are also various other countries that are in the top ten consistently. The United Arab Emirates, for example, is consistently in the top ten of the largest oil reserves, and current sits at about 113 billion barrels of oil in reserve. Kuwait is another country within the top ten at about 101 billion barrels, alongside the United States and Libya, which both have about 50 billion barrels of oil in reserve.

It is important, especially in the United States, to have large oil reserves to offset severe supply shortages. These shortages can be born from many issues, but especially from geopolitical tensions. In the early 1970’s, for example, OPEC’s Arab members implemented an embargo against the United States’ foreign oil imports. This embargo was due to the United States’ efforts to arm the Israeli army and gain sociopolitical leverage for post-war negotiations amid the Arab-Israeli War. The oil embargo drained the United States’ economy because it had become increasingly dependent on the country’s foreign oil imports. To combat the economic downturn, the Nixon administration at the time implemented a new strategy for its domestic energy production in hopes of offsetting the strain of the lack of imported foreign oil. While the embargo was lifted in March of 1974, the negative impact that the embargo had on the U.S. economy and supply shortage proved to the United States government that they had to prepare their own domestic oil reserves if they faced another severe shortage in the future.

Production in Oil Reserves

While it is important to have big oil reserves, their size is not indicative of the production value of the oil. Venezuela may have bigger oil reserves than the United States, but because of the advanced infrastructure and highly developed extraction technology of the latter, Venezuela’s production is lacking in comparison. The United States, over the last decade, has consistently been on the rise in its oil production. In 2013, the United States produced a little under 8 million barrels a day; eleven years later in 2024, the country produces over 12 million barrels a day.

As its oil production rises, so does the United States’ title as the largest oil producer in the world. The production is so large that the country’s oil exports meet other oil exporters, such as Saudi Arabia and Russia. In non-OPEC countries like Brazil and Canada, they too are raising their production numbers and exporting more oil overseas as well.

Oil, as well as oil reserves, are incredibly important to the worldwide push to creating a more sustainable future. By making moves like having strategic oil reserves, in conjunction with other moves like investing in renewable energy, this global effort is well on its way to securing an economically stable and flourishing future.