Part 1: Mapping the World’s Oil Supply

Blog Series: Where the World’s Oil Comes From

Part 1: Mapping the World’s Oil Supply

Oil remains the single most important commodity in the global economy. It fuels transportation, supports manufacturing, and underpins everything from plastics to fertilizers. But where does the world’s oil actually come from?

Despite the global nature of the oil market, production is heavily concentrated in just a few regions.

Global Oil Production by Region

In 2025, the world produced roughly 106 million barrels of oil per day, according to estimates compiled from U.S. Energy Information Administration data. 

Here is how global oil production breaks down by region:

Two regions dominate the global oil system:

North America and the Middle East together produce nearly 60% of the world’s oil.

North America: The Shale Revolution

North America leads global production largely because of the United States. Over the past two decades, technological advances in hydraulic fracturing (fracking) and horizontal drilling unlocked massive shale deposits in places like:

• The Permian Basin (Texas and New Mexico)
• The Bakken Formation (North Dakota)
• The Eagle Ford (Texas)

U.S. oil production has more than doubled since the early 2000s, turning the country into the world’s largest producer and even a net exporter of petroleum products.

Canada also contributes significantly through its oil sands industry, particularly in Alberta.

The Middle East: Traditional Oil Powerhouse

While North America leads today, the Middle East remains the heart of global oil reserves and a dominant force in exports.

Major producers include:

• Saudi Arabia
• Iran
• Iraq
• United Arab Emirates
• Kuwait

These countries benefit from some of the largest and lowest-cost oil reserves in the world, which allows them to influence global supply through production decisions.

A Highly Concentrated Resource

Although oil is produced on every continent except Antarctica, supply is highly concentrated. A handful of countries and regions can significantly influence global prices and economic stability.

That reality leads to an important question:

How does oil actually move from these regions to the rest of the world?

That’s where geography—and a few critical chokepoints—come into play.

In Part 2 of this series, we’ll explore how oil travels around the world and why one narrow waterway in the Middle East may be the most important shipping lane on the planet.