Saudi Arabia leads in recoverable oil reserves: Rystad Energy

Saudi Arabia tops the list of countries with the most recoverable oil, with 247bn barrels, according to new research from Rystad Energy

Iraq also features in the list of the top five countries with most recoverable oil, with 105bn barrels, coming in fifth place. The USA is second with 156bn barrels, Russia third with 143bn barrels and Canada fourth with 122bn barrels.

However, global recoverable oil reserves could be insufficient to meet demand unless there is a swifter transition to electric vehicles, according to Rystad Energy’s latest research, which shows global recoverable oil reserves standing at around 1,500 billion barrels, down around 52 billion barrels from its 2023 analysis.

The largest downward revisions are seen in Saudi Arabia, where development priorities have shifted from offshore capacity expansions to onshore infill drilling. The only country with any significant increase in 2024 is Argentina, with a gain of 4bn barrels thanks to the derisking of shale projects in the Vaca Muerta formation.

Rystad’s estimates of total recoverable oil resources have fallen by 700bn barrels since 2019 due to reduced exploration activities. Exploration has fallen as investors fear stranded assets due to the ongoing electrification of vehicles and the expected decline in both oil demand and crude prices.

“The world’s remaining oil reserves are insufficient to support oil demand if there is no transition to electric vehicles. Attempts to limit the supply of oil will have hardly any effect on limiting global warming. Instead, the only feasible way of keeping global temperatures rising less than 2.0 degrees Celsius is to ensure fast electrification of road transportation,” says Per Magnus Nysveen, head of Analysis at Rystad Energy.

Rystad Energy also reports proven oil reserves at 449bn barrels, which signifies remaining oil reserves if no new development projects were to be approved and all exploration activities were stopped. This is a significant upward revision since 2023, driven by increased onshore infill drilling in Saudi Arabia.