
Global Oil Consumption Reaches All-Time High
The U.S. continues to lead the world in total oil production, contributing to a record global output despite a slowdown in its growth rate.
The 2025 Statistical Review reveals key shifts including declining production in Russia and Saudi Arabia, surging demand in India, and the significant rise of Guyana as an oil producer.
Each year, the Statistical Review of World Energy offers important insights into global energy trends. Now published by the Energy Institute in collaboration with KPMG and Kearney, the 2025 edition—reflecting full-year 2024 data—reveals that global oil production and consumption remained relatively steady, but there are meaningful shifts underway.
These shifts reflect not only changing geopolitics and economic recovery patterns but also longer-term questions around energy security, investment priorities, and the uneven global evolution toward decarbonization.
In 2024, global oil consumption–which excludes biofuels but includes coal and natural gas derivatives–reached 101.8 million barrels per day (bpd). The represents an all-time high that slightly surpassed the 2023 level by 0.7%. On average, oil demand has increased by 1% per year over the past decade, driven almost entirely by non-OECD countries.
The U.S. remains the world's largest oil consumer, accounting for 18.7% of global demand. Daily consumption in the U.S. fell slightly from 2023, but over the past decade it increased by 0.5% per year on average.
China was the world's second-largest oil consumer, accounting for 16.1% of global demand. Its daily consumption fell 1.2% to 16.4 million bpd in 2024. This decline is a marked departure from the average 4% gain per year over the past decade, which means China's oil demand may be showing signs of plateauing. With economic growth slowing and a push toward electrification of transportation underway, some analysts speculate China may be approaching its long-term oil demand peak.
Meanwhile, India's oil consumption continues to surge, jumping 3.1% year-over-year to 5.6 million bpd. The nation's economic expansion and rising middle class continue to drive growth, putting India on track to become the third-largest oil consumer globally within a few years.
OECD nations saw modest changes in oil demand (+0.1%) while non-OECD nations saw demand jump by 1.2%.
On the production side, global oil output (including natural gas liquids and other liquids) hit a record 96.9 million barrels per day. That's 1.8 million barrels more than the pre-pandemic peak, and about 9% higher than the lows seen during the COVID-19 downturn. On the surface, it's a story of resilience and recovery. But dig a little deeper, and the numbers reveal a more complicated picture.
The United States continues to lead the world in total oil production, clocking in at 20.1 million barrels per day. But that headline figure includes a sizable share of natural gas liquids—byproducts like ethane and propane that aren't typically directly used as transportation fuels but may function as refinery feedstock.
Strip those out, and U.S. production of crude oil and condensate—the type of output most analysts consider 'true oil'—comes in at 13.2 million barrels per day. Although this was yet another production record, the 2% increase from 2023 was less than half the 4.2% average annual gain over the previous decade, which could be an indication that U.S. production is close to a plateau.
Russia follows in second place at 10.2 million barrels per day of crude plus condensate. That was down 3.1% from 2023, largely due to the impact of Western sanctions and logistical constraints. However, Russian exports to China and India remained robust, helping the country maintain relevance in global energy markets despite diplomatic isolation.
Saudi Arabia also saw production fall by 4.2%. Saudi was in third place in 2024 with 9.2 million barrels per day, the lowest level since 2011. The drop reflects both voluntary production cuts to support prices and long-term questions about the Kingdom's spare capacity amid heavy domestic investments in refining and petrochemicals.
The Statistical Review also sheds light on global oil reserves, although those are only available for the end of 2020. At that time, the world's proven oil reserves stood at 1.7 trillion barrels—enough to sustain current production levels for roughly 53.5 years. However, the distribution of those reserves remains highly uneven.
Venezuela still holds the largest proved reserves, at 304 billion barrels, but much of that oil is heavy and difficult to extract. Saudi Arabia is second with 298 billion barrels, followed by Iran at 158 billion. The U.S., by contrast, holds 69 billion barrels—reflecting both a mature production base and a reserve classification system that tends to be more conservative.
A few notable trends emerged from this year's data: Saudi Arabia's Output Decline : The drop in Saudi production is significant not only because it's the lowest in more than a decade, but also because it signals a shift in how the Kingdom may balance price stability with market share.
: The drop in Saudi production is significant not only because it's the lowest in more than a decade, but also because it signals a shift in how the Kingdom may balance price stability with market share. U.S. Efficiency and NGLs : While the U.S. continues to be the top oil producer, a growing share of that output is in the form of natural gas liquids, which are not suitable for all applications and require different refining infrastructure. This evolution has implications for and refining strategies.
: While the U.S. continues to be the top oil producer, a growing share of that output is in the form of natural gas liquids, which are not suitable for all applications and require different refining infrastructure. This evolution has implications for and refining strategies. Flat Growth in Global Reserves : The relative lack of reserve growth despite strong consumption reflects an investment hesitancy across much of the industry. This could pose long-term supply challenges if demand doesn't moderate.
: The relative lack of reserve growth despite strong consumption reflects an investment hesitancy across much of the industry. This could pose long-term supply challenges if demand doesn't moderate. India's Ascent : India's rise as a major demand center—with relatively little domestic production—makes it one of the most strategically important countries in the oil market. Its policy choices on storage, refining, and renewables will shape future demand dynamics.
: India's rise as a major demand center—with relatively little domestic production—makes it one of the most strategically important countries in the oil market. Its policy choices on storage, refining, and renewables will shape future demand dynamics. Guyana's Rise: Guyana's meteoric rise from zero to over 600,000 barrels daily in just five years is one of the fastest production ramps in oil industry history. With reserves now estimated at 11 billion barrels, Guyana is projected to reach 1 million barrels daily soon, potentially becoming a top-five global producer within the decade.
Oil markets in 2024 were defined by an uneasy equilibrium. On the one hand, production and consumption were closely matched, and price volatility was relatively contained. On the other, the factors holding that balance together—OPEC+ coordination, U.S. shale resilience, and subdued global demand growth—are all subject to disruption.
Looking ahead, several questions loom: Will China's oil demand begin to decline in absolute terms?
Can U.S. shale sustain output without massive reinvestment?
Will geopolitical risks in the Middle East, Russia, or elsewhere upset the delicate supply-demand balance?
These aren't just market questions—they are strategic ones that affect global inflation, trade, and energy security.
The 2025 Statistical Review confirms that oil is still very much at the center of the global economy. Demand is growing in the developing world, production remains concentrated among a handful of players, and supply vulnerabilities persist.
In the coming weeks, I'll continue to unpack key findings from the Statistical Review, including natural gas, coal, renewables, and nuclear power trends. But one thing is clear from the oil data: in a world increasingly focused on energy transition, the importance of oil—economically and geopolitically—hasn't gone anywhere.
Also read: OPEC Says Global Oil Consumption Will Hit 123 Million BPD By 2050
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Gulf Insider
4 hours ago
- Gulf Insider
Saudi Arabia Publishes New Law Allowing Foreigners To Own Property
Saudi Arabia has officially published the full details of its new law regulating real estate ownership by non-Saudis, following Cabinet approval earlier this month. The comprehensive law, released in the official gazette Umm Al-Qura on Friday, will take effect 180 days from publication and marks a major overhaul in the Kingdom's approach to foreign ownership of property. The new system grants non-Saudis — including individuals, companies, and non-profit entities — the right to own property or obtain other real rights over real estate within designated geographic zones to be determined by the Cabinet. These rights include usufruct (beneficial use), leaseholds, and other real estate interests, but will be subject to a range of controls and restrictions based on location, property type, and usage. The law preserves all real estate rights that were legally established for non-Saudis prior to the new regulation taking effect. However, it clearly states that ownership remains prohibited in certain locations and regions, notably in Makkah and Madinah, except under conditions for individual Muslim owners. A key provision in the law requires the Council of Ministers — upon a proposal by the Real Estate General Authority and with the approval of the Council of Economic and Development Affairs — to define the allowable zones for foreign ownership and set upper limits on ownership percentages and durations for usufruct rights. Foreign individuals legally residing in Saudi Arabia may own one residential property outside restricted areas for personal housing purposes. This does not apply to Makkah and Madinah. The regulation also includes provisions for corporate ownership. Non-listed companies with foreign shareholders, as well as investment funds and licensed special-purpose entities, will be permitted to acquire real estate throughout the Kingdom, including in Makkah and Madinah, provided the ownership supports operational needs or employee housing. Listed companies and investment vehicles may also acquire property in line with Saudi financial market regulations. Diplomatic missions and international organizations can also own premises for official use and residence of their representatives, subject to Foreign Ministry approval and reciprocity conditions. To ensure compliance, non-Saudi entities must register with the competent authority before acquiring property. Ownership or real rights become valid only after formal registration in the national real estate registry. The law introduces a real estate transfer fee of up to 5% for transactions involving non-Saudis, and outlines a penalty framework for violations. Sanctions include fines up to SR10 million and, in severe cases such as falsified information, the forced sale of the property with proceeds remitted to the state after deductions. A dedicated committee under the Real Estate General Authority will be formed to investigate violations and impose penalties. Decisions of this committee can be appealed to the administrative courts within 60 days. Additionally, the law repeals a prior rule that prohibited GCC citizens from owning property in Makkah and Madinah, effectively standardizing rules for all non-Saudi entities under a single framework. The executive regulations, which will detail implementation mechanisms and specify geographic boundaries and conditions, are expected to be issued within six months. The new law replaces the previous foreign property ownership legislation issued under Royal Decree No. M/15 in 2000.


Biz Bahrain
5 days ago
- Biz Bahrain
Standard Chartered: Weak Dollar to Unlock Opportunities in Emerging Markets and Global Equities
Standard Chartered announced its Global Market Outlook for the second half of 2025, projecting a constructive but volatile environment for investors worldwide. The Bank sees significant implications for Middle East investors, driven by expectations of a softer US dollar, resilient global equity markets and improving prospects for emerging-market assets. The report highlights that Global macro conditions remain mixed. In the United States, growth continues to be supported by resilient consumption and fiscal stimulus, though trade and policy uncertainty may temper momentum in the second half of the year. In Europe, fiscal easing increasingly offers support, but structural challenges persist while China's outlook is stabilising on the back of targeted stimulus and improving retail activity. Meanwhile, growth in India and ASEAN is expected to remain well-supported. Against this backdrop, the report outlines an investment strategy reflecting evolving risks and opportunities. We expect the US dollar to weaken over the next 6 to 12 months and have accordingly upgraded Asia (ex-Japan) equities and Emerging Market (EM) local-currency bonds to Overweight. Global equities also remain an Overweight position across portfolios, supported by healthy earnings, easing trade tensions, and controlled inflation (so far). Commenting on the report, Dr. Boutros Klink, CEO, Standard Chartered Bahrain, said: 'As global markets transition into a new phase, investors in Bahrain and the wider Middle East are well-positioned to capitalise on emerging opportunities. A weaker dollar historically supports returns across risk assets, particularly in emerging markets, which have long been core components of regional portfolios.' He added: 'This outlook underscores a critical moment for investors in the region. As the global environment adjusts to weak dollar dynamics, shifting trade policies, and diverging central bank actions, investors in our region have an opportunity to reposition portfolios with greater international diversification. Asset classes such as emerging market bonds and equities across major regions (including non-US equities) are well-placed to help investors navigate volatility, capture income, and enhance portfolio resilience in today's shifting landscape.' In line with these themes, the report maintains a preference for USD-denominated bonds in the 5–7-year maturity range, citing them as the most attractive in terms of risk-adjusted returns, particularly as yields begin to ease from current levels. Meanwhile, Developed Market Investment Grade corporate bonds have been downgraded to Underweight due to tight yield premiums and slower inflows. Alternative investments are also in focus, with the Bank highlighting gold as a core allocation, supported by strong central bank demand and its role as a diversifier when bonds offer less downside protection.


Daily Tribune
6 days ago
- Daily Tribune
Car Imports in Bahrain Jump 15% in First Half of 2025 Amid Growing Demand
TDT | Manama Bahrain has imported more than 22,200 vehicles in the first six months of 2025, marking a 15% increase compared to the same period last year, according to official figures. In the first half of 2024, the Kingdom brought in around 19,400 vehicles. The growth reflects rising consumer demand, supported by a booming local market, population growth, ongoing housing expansion projects, and increased consumer lending activity, especially in the auto sector. This upward trend has been building steadily since the end of the COVID-19 pandemic. In 2024, Bahrain recorded the highest annual car imports since 2017, with 44,216 vehicles brought in. Back in 2017, imports had exceeded 47,000 cars. January 2025 stood out as the busiest month in over eight years, with 5,365 vehicles imported — a sign of strong momentum at the start of the year. This surge was fueled by end-of-year promotional offers and credit facilities from banks and finance companies. On the other hand, May 2025 recorded the lowest number of imports in the first half of the year, with just 2,453 vehicles. Industry experts link this dip to recurring seasonal factors such as school exams and the summer holiday period. The sustained growth signals improving consumer confidence and a broader base of younger buyers entering the market. It also highlights the role of stable and flexible customs policies, which are making it easier to import vehicles through Khalifa Bin Salman Port, the main gateway for the Kingdom's commercial goods. Bahrain's auto market typically sees 28,000 to 35,000 new vehicles sold each year, according to local dealership data. In addition to new car sales, the country also hosts a vibrant used car market, with imports primarily from the United States, Japan, and South Korea.