In this article I address some key questions about palm oil production: how has it changed; where is it grown; and how this has affected deforestation and biodiversity. In our base case which takes into account current industry plans, government policies and existing energy transition initiatives global oil demand is forecast to rise by 3.5 mb/d between 2019 and 2025. Irans oil output increased dramatically last year, rising from 2,990,000 bpd in 2020 to 3,458,000 bpd in 2021. According to the EIA, total primary energy consumption in Brazil has nearly doubled in the past decade because of sustained economic growth. Nearly all of Canada's proven oil reserves are located in Alberta, and. The rise of palm oil follows the rapid increase in demand for vegetable oils more broadly. When production rose dramatically in April of that year after Russias decision not to approve further cuts proposed by Saudi Arabia, the de facto OPEC leader responded by offering its product at a discount and producing more oil. How has the world achieved such a rapid expansion of palm oil production? Indonesia accounted for 57% of this (41 million tonnes), and Malaysia produced 27% (20 million tonnes).84% of global palm oil production comes from Indonesia and Malaysia. But has this expansion came at the expense of tropical forest? There are a couple of reasons why palm oil has been the favored crop to meet growing demand for vegetable oils. In 2021, it saw a small year-on-year increase in production, with oil output rising to 3,786,000 bpd. Wahid, M. B., Abdullah, S. N. A., & IE, H. (2005). The staggering inventory surplus that built up last year is being worked off and global oil stocks, excluding strategic reserves, will return to pre-pandemic levels in 2021. However, we might argue that this oversimplifies the comparison to more temperate crops: it assumes the environmental impact of devoting one hectare of land for sunflower seeds in Europe is the same as cutting down tropical rainforests to grow palm or coconut plantations. Figure 7. Potapov, P., Hansen, M. C., Laestadius, L., Turubanova, S., Yaroshenko, A., Thies, C., & Esipova, E. (2017). One study suggests that palm oil is responsible for around 2% of global tree loss.6 Another suggests it is responsible for only 0.2% of intact forest loss.7 This seems very low. Only 6% of global intact forest is in Southeast Asia, the hotspot of palm oil expansion. See the distribution of global forests and which countries have the most forest cover. How can we use palm oil without destroying tropical forests? It thrives on high rainfall, adequate sunlight and humid conditions this means the best growing areas are along a narrow band around the equator.4 Palm oil is therefore grown in many countries across Africa, South America, and Southeast Asia. Pendrill, F., Persson, U. M., Godar, J., & Kastner, T. (2019). That marks a dramatic change from recent years when the United States dominated world supply growth. While the upstream sector could see its capacity cushion deflate, the refining sector is struggling with excess capacity. Explore palm oil production across the world, and its impacts on the environment. We can look at this in terms of the amount of land we would need if total global demand for vegetable oil was met from a single crop alone. We can simply calculate this as 1 / Yield (in tonnes per hectare). If Iran remains under sanctions, keeping the world oil market in balance may require Saudi Arabia, Iraq, the UAE and Kuwait with their surplus capacity to pump at or near record highs. Lets give these numbers some context. This is a change of 0.12% from last month and 3.48% from one year ago. Against this backdrop, it is hardly surprising that upstream investments and expansion plans have been scaled back. Oil demand in 2025 is set to be 2.5 mb/d lower than was forecast a year ago in our Oil 2020 report. What causes deforestation in Indonesia?. Why has the market for palm oil and vegetable oils more broadly increased so rapidly? Effect of oil palm sustainability certification on deforestation and fire in Indonesia. 75% of these plantations were grown on land that was previously forested in 1973. World crude oil price vs. oil consumption. To do this effectively, understanding for consumers has to be clearer. 3 min read. IEA (2021), Oil 2021, IEA, Paris https://www.iea.org/reports/oil-2021, License: CC BY 4.0. But, most of the research concludes that, particularly in tropical forests in Southeast Asia, palm expansion has played a significant role. But its not clear that the alternatives would have fared any better. 2023 Pharmaceuticals Outlook Report. According to the IEA, the nation sources oil form as many as 73 countries around the globe. In the absence of more rapid policy intervention and behavioural changes, longer-term drivers of growth will continue to push up oil demand. Environmental Research Letters, 14(1), 014001. The industry group says that's 11 per cent higher than last year and also surpasses pre-COVID-19 pandemic levels. Although the US is the worlds largest oil producer, its domestic oil consumption far outpaces its homegrown output. In addition to being a major oil producer, the US is a big consumer of oil. This video shows the Top 20 countries by their total oil production from 1900 to 2020 (last 120 years). Compared with shorter-term data, the full-year figures are less prone to distortion from periodic maintenance shutdowns and other seasonal cycles. Aligning with the World Energy Outlooks Sustainable Development Scenario which maps out a trajectory consistent with the climate goals of the Paris Agreement and other sustainable energy objectives oil demand would have to decline by 3mb/d over the same period. The volumes in the table represent crude oil and lease condensate, the hydrocarbon liquids collected at or near the wellhead. We also provide some thoughts concerning compliance and risk mitigation in this challenging environment. Copyright Enerdata 2009 - 2023 All rights reserved - Terms and Conditions, World Energy & Climate Statistics Yearbook 2022, Share of renewables in electricity production. Other producers include Thailand, Colombia, Nigeria, Guatemala, and Ecuador. 3. In fact, only one-quarter of post-1973 plantations in the Borneo was driven by rapid conversion of this land to plantations (2021% oil-palm; 4.34.8% pulpwood). Why does this matter? Energy exports to the US account for the vast majority of Canadas total energy exports. The output control deal made between the Organization of the Petroleum Exporting Countries (OPEC) and 11 of the worlds top oil producers expired in 2020. Get stock market quotes, personal finance advice, company news and more. Switching to alternatives would mean the world would need to use more farmland, and face the environmental costs that come with it. The implications of a potential loss of Russian oil exports to global markets cannot be understated, the IEA stated. This data is sourced from the UN Food and Agriculture Organization (FAO). The Canadian Association of Petroleum Producers says it expects investment in oil and natural gas production in this country to hit $40 billion this year. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. If you want to produce one tonne of oil, you would need 4 times the amount of cropland devoted to sunflower or rapeseed, or 10 to 15 times the amount of land devoted to coconut production. An effective and orderly transition will be critical not only to reach international climate targets but also to prevent serious supply disruptions and destabilising price volatility along the way. In a paper published in Nature, David Gaveau and colleagues (2016) used satellite imagery to assess what types of land industrial plantations replaced in the Borneo region.9 Industrial plantations include palm oil and pulpwood tree plantations, but are dominated by the former. European Journal of Lipid Science and Technology, 109(4), 307-314. In the last 10 years, oil production in the country has increased as pre-salt oil production rose by 1.6 million bpd from 2012 to 2019. Statistics are from the Energy Information Administration (EIA) and include total production of petroleum and other liquids. In this sense, palm oil has been a land sparing crop. Carter, C., Finley, W., Fry, J., Jackson, D., & Willis, L. (2007). Oil production crashes by 83% - Report. The US has been described as a swing producer because its production fluctuates alongside market prices. The change in global production is shown in the chart.3. Some sectors such as aviation, shipping and petrochemicals will continue to rely on oil for some time. 2023 Battery Metals Outlook: Australia Edition, NEW! The world consumes 35,442,913,090 barrels of oil as of the year 2016, equivalent to 97,103,871 barrels per day. Saudi Arabias oil output came in at 10,835,000 bpd in 2021. A push towards increased biofuel consumption in the transport sector has been driving this, despite it being worse for the environment than normal diesel (more on this later). Licenses: All visualizations, data, and articles produced by Our World in Data are open access under the Creative Commons BY license. In the map we see the distribution of production across the world. This indicator is measured in thousand tonne of oil equivalent (toe).Crude oil is a mineral oil . All other material, including data produced by third parties and made available by Our World in Data, is subject to the license terms from the original third-party authors. Twelve of the most important oil-producing countries are listed in Table 2.3, together with their annual output from 2007 to 2011 (in units of million barrels per day, 10 6 bbl d 1 ), 1 and their percentage contribution to the world total. MarketWatch provides the latest stock market, financial and business news. Vijay, V., Pimm, S. L., Jenkins, C. N., & Smith, S. J. This trend is forecast to continue into 2023. What this means is that it accounts for a very high share of oil production without taking up much land. There are now a number of certification schemes which help to verify whether palm oil is being produced in a sustainable way. In the chart here we see the change in land use. As you can see, there are essentially three superpowers that produce over 10 million barrels of oil per day: United States (13.1 million), Saudi Arabia (12.0 million), and Russia (11.3 million). Heres a look at the top 10 oil-producing countries. In the chart we see the breakdown of global vegetable oil production in 2018. This seems like a simple question, but is not as straightforward as we might expect. Thank you for subscribing. According to the EIA, Iran holds the worlds third largest proven oil reserves, as well as the worlds second largest natural gas reserves. As wed expect, all of these countries lie along the zone of optimal conditions around the equator. European countries should stop using palm oil for biofuels. Due to varying update cycles, statistics can display more up-to-date Share of top producing countries in extraction of selected minerals and fossil fuels, 2019 Open % Minerals Oil Natural gas Copper Nickel Cobalt Graphite Rare earths Lithium 0 20 40 60 80 Fossil fuels United States Saudi Arabia Russia Iran China Australia Chile Democratic Republic of the Congo Indonesia Philippines Myanmar Peru Mozambique Brazil So, Direct deforestation for palm oil played a larger role in Malaysia; 60% was driven by plantations, whilst in Indonesia it was only 16%. Who uses palm oil and what is it used for? Like most oil-producing countries, Brazil's oil exports decreased in recent months, due to the lower global demand. This is based on reported figures as of November 2020. As weve discussed, substituting palm oil with alternatives can do more harm than good. Crude oil production is defined as the quantities of oil extracted from the ground after the removal of inert matter or impurities. In March 2022, the International Energy Agency (IEA) warned that Russia could be forced to cut 30 percent of its crude oil production, resulting in a serious global oil supply crisis. This is a list of countries by oil production (i.e., petroleum production), as compiled from the U.S. Energy Information Administration database for calendar year 2021, tabulating all countries on a comparable best-estimate basis. All the software and code that we write is open source and made available via GitHub under the permissive MIT license. Oil palm is a tropical plant species. But this is reasonably consistent with studies that have looked at the expansion of palm plantations more broadly. The world devotes more than 300 million hectares for oilcrop production. Chart Tools. The Oil 2021 dataset includes 2019 data and forecasts through 2026 for world oil supply and demand by region, global oil demand by region and for major economies, world oil production (OPEC data through 2020 only), world refinery capacity additions, world Oil 2021 The data behind the Oil 2021 report with forecasts to 2026 Data set Global production increased ten-fold since the 1960s from 17 to 170 million tonnes in 2014. Oil and gas production from the UKCS has contributed 271 billion (2008 money) in tax revenues over the last forty years. According to Reuters, during the first few months of 2022, Chinas crude oil refineries have been cutting production due to COVID-19 lockdowns as the virus continues to challenge the governments zero-COVID strategy. The World Crude Oil Production measures the number of barrels of crude oil that are produced per day in the world. In 2016, production reached 3,072,000 bpd, then dropped to 3,025,000 bpd in 2017. But its also true that alternative oils are not always suitable for the products we need. At the current pace, American production will decline to less than 11 million barrels a day by the end of the year, from 13.3 million barrels a day at the end of 2019. In response to Russias war in Ukraine, Canada, the US, the UK and Australia have banned imports of Russian oil, representing about 13 percent of Russias exports. Palm oil is a very productive crop; as we will see later, it produces 36% of the worlds oil, but uses less than 9% of croplands devoted to oil production. 2. Roughly C$19 billion is spent on oil imports each year. Plant Production Science, 8(3), 288-297. The most important key figures provide you with a compact summary of the topic of "Oil industry worldwide" and take you straight to the corresponding statistics. In March 2022, the US government announced a ban on imports of oil, liquefied natural gas and coal from Russia in response to the invasion of Ukraine. 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oil production by country last 10 years
