The Hydrocarbon Highway – Chapter 5

Chapter 5 – World Oil and Gas Production surveys major global producers from an export perspective,
comparing OPEC and non-OPEC exporters, reserve distributions, and production capacity.
The chapter quantifies national production and exports, analyses reserve-to-production ratios, and discusses the
geopolitical and economic significance of net exporters for global market stability.

Overview

• Compares OPEC and non-OPEC production, highlighting the concentration of reserves in the Middle East.
• Identifies major net exporters and their significance to international markets.
• Explains reserves-to-production ratios and the long-term implications for supply.
• Describes refinery capacity and its relation to domestic consumption and exports.
• Introduces the Gas Exporting Countries Forum (GECF) as a counterpart to OPEC for gas markets.

Key Topics and Concepts

• Net Exporters – Distinguishing production available for export after domestic use.
• Reserves Distribution – OPEC’s dominant share of proved reserves and its implications.
• Refining Capacity – How refinery location and size affect trade in refined products.
• Non-OPEC Producers – Russia, Norway, Mexico, Canada and Kazakhstan as important exporters.
• Spare Capacity – The role of countries like Saudi Arabia in market stabilisation.

Country Profiles and Data

• Saudi Arabia – Largest reserves, significant spare capacity and major exporter.
• Iran – Large reserves, NIOC dominance, and buy-back contract structures.
• Venezuela – Heavy oil focus and PdVSA’s role in national production policy.
• UAE, Nigeria, Kuwait, Iraq, Libya, Algeria – Regional producers with export-oriented production.
• Russia – Major non-OPEC exporter with vertically integrated national champions.
• Norway, Mexico, Kazakhstan, Canada – Non-OPEC exporters with distinct reserve types and export profiles.

Figures and Illustrations

• Production and export time-series for major producers (1987–2007).
• Maps showing reserves concentration and major export routes.
• Refinery capacity by country and regional product flows.
• Charts comparing reserves-to-production ratios for OPEC vs non-OPEC.

Summary

The chapter concludes that OPEC remains central to long-term oil supply due to its disproportionate share of proved
reserves and net exports. Non-OPEC producers play key roles regionally and in markets for refined products, but global
export capacity and long-term supply resilience depend heavily on OPEC members and a small set of large non-OPEC exporters.

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