Financial Risk Manager

During the run up to the oil prices to the record level, there have been debate of growing consumption across BRIC countries and production will not catch up with consumption growth. However, the data below suggest that consumption among top ten consumers have increase only by 7% over last year, while production among top ten producers have declined by 13% mainly contribute by Saudi Arabia and other middle east countries and also from Venezuela. The reserves also suggest that there are sizeable reserves for production for years to come. The data suggests that the answer to the soaring oil prices lies elsewhere rather than on increasing consumption from developing nations.

TOP TEN CONSUMERS (In Thousand Barrels/day)

USA-----------------23.90%-------20,698
China---------------9.30%---------7,855
Japan---------------5.80%---------5,051
India---------------3.30%---------2,748
Russian Federation--3.20%---------2,699
Germany-------------2.80%---------2,393
South Korea---------2.70%---------2,371
Canada--------------2.60%---------2,303
Saudi Arabia--------2.50%---------2,154
France--------------2.30%---------1,919

TOP TEN PRODUCERS (In Thousand Barrels/day)

Saudi Arabia--------12.60%--------10,413
Russian Federation--12.60%---------9,978
USA------------------8.00%---------6,879
Iran-----------------5.40%---------4,401
China----------------4.80%---------3,743
Mexico---------------4.40%---------3,477
Canada---------------4.10%---------3,309
UAE------------------3.50%---------2,915
Venezuela------------3.40%---------2,613
Kuwait---------------3.30%---------2,626