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"Oil" redirects here. For other uses, see Oil (disambiguation).
Petroleum, also known as crude oil or simply as oil in its liquid state, is a substance mainly consisting of hydrocarbons, formed by the decomposition of organic material over time. While referred to as crude oil in its liquid form, broader definitions of petroleum can also refer to natural gas or bitumen.[1][2][3]
Petroleum is widely used in the manufacturing of thousands of products as well as being burned as a source of fuel.[3] It is a fossil fuel and a non-renewable resource.[3]
Petroleum is a strategically significant resource due to a variety of considerations, including its material qualities as well as its function in the petrodollar system.[4]
As of 2024 data, the leading exporters of crude petroleum were Saudi Arabia, Russia, and the United States.[5] The countries with the highest share of crude petroleum comprising their exports were Chad (91.3%), Libya (90.6%), and Iraq (89.6%),[5] while the countries where crude petroleum ranked highest in their export portfolios were Angola (1st), Azerbaijan (1st), and Brazil (1st).[5]
Venezuela has the world's largest proven oil reserves. Saudi Arabia and Iran also possess major proven reserves. Canada ranks fourth globally in proven reserves, with the majority of Canada's reserves coming from oil sands, which are more expensive and carbon-intensive to extract. Iraq, UAE, Kuwait, Russia, Libya, and the US are also among the top ten in proven reserves, as of 2024.[6]
Production
Crude oil (and natural gas) can be found in underground reservoirs, which are found by analyzing geological structures that typically trap petroleum, and engaging in processes such as seismic reflection and exploratory drilling. When oil is found and extracted, different mixtures of materials such as sulfur and sand are typically present in the oil, which are later removed in the refining process.[3]
See also
References
- ↑ Petroleum fundamentals glossary (1990). The University of Texas at Austin.
- ↑ Wilbur Cross (1983). Petroleum.
- ↑ 3.0 3.1 3.2 3.3 "Petroleum". National Geographic.
- ↑ Prabhat Patnaik (2026-04-07). "Oil and the world economy" MR Online.
- ↑ 5.0 5.1 5.2 "Crude Petroleum." Observatory of Economic Complexity. Accessed 2026-05-02.
- ↑ Bruno Venditti (2025-12-30). "All of the World’s Oil Reserves by Country, in One Visualization" Visual Capitalist.