Discussion
Which country is the world’s largest producer of crude oil?
Answer: C
Correct answer: The United States
The United States has been the world’s largest producer of crude oil since about 2018, ahead of Saudi Arabia and Russia. The change came from hydraulic fracturing and horizontal drilling, which unlocked oil held in shale formations that had previously been uneconomic - chiefly the Permian Basin in Texas and New Mexico, the Bakken in North Dakota and the Eagle Ford in Texas. Production roughly doubled within a decade. Note the distinction from reserves: Venezuela and Saudi Arabia hold much larger proven reserves, but reserves measure what is in the ground and production measures what is lifted from it. Saudi Arabia retains the greatest spare capacity, which gives it disproportionate influence over prices through OPEC. India produces only a small fraction of what it consumes and imports over 80 per cent of its crude, which makes oil prices a direct concern for its current account and inflation.
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