Petroleum is not distributed evenly around the world. More than half of the world’s proven oil reserves are located in the Middle East (including Iran but not North Africa); that is to say, the Middle East contains more oil than the rest of the world combined. Following the Middle East are Canada and the United States, Latin America, Africa, and the region occupied by the former Soviet Union. Each of those regions contains less than 15 percent of the world’s proven reserves. (Reserves are identified quantities of “in-place” petroleum that are considered recoverable under current economic and technological conditions. Estimated by petroleum engineers and geologists using drilling and production data along with other subsurface information, the figures are revised to include projected field growth as development progresses.
The amount of oil a given region produces is not always proportionate to the size of its proven reserves. For example, the Middle East contains more than 50 percent of the world’s proven reserves but accounts for only about 30 percent of global oil production (though this figure is still higher than in any other region). The United States, by contrast, lays claim to less than 2 percent of the world’s proven reserves but produces about 10 percent of the world’s oil.
Two overriding principles apply to world petroleum production. First, most petroleum is contained in a few large fields, but most fields are small. Second, as exploration progresses, the average size of the fields discovered decreases, as does the amount of petroleum found per unit of exploratory drilling. In any region, the large fields are usually discovered first.
Since exploration for oil began during the early 1860s, some 50,000 oil fields have been discovered. More than 90 percent of these fields are insignificant in their impact on world oil production. The two largest classes of fields are the supergiants, fields with 5 billion or more barrels of ultimately recoverable oil, and world-class giants, fields with 500 million to 5 billion barrels of ultimately recoverable oil. Fewer than 40 supergiant oil fields have been found worldwide, yet these fields originally contained about one-half of all the oil so far discovered. The Arabian-Iranian sedimentary basin in the Persian Gulf region contains two-thirds of these supergiant fields. The remaining supergiants are distributed as follows: two in the United States, two in Russia, two in Mexico, one in Libya, one in Algeria, one in Venezuela, and two in China.
The nearly 280 world-class giant fields thus far discovered, plus the supergiants, account for about 80 percent of the world’s known recoverable oil. There are, in addition, approximately 1,000 known large oil fields that initially contained between 50 million and 500 million barrels. These fields account for some 14 to 16 percent of the world’s known oil. Less than 5 percent of the known fields originally contained roughly 95 percent of the world’s known oil.