Which Country is Leading in Oil Exports?

With geopolitical uncertainty rising, procurement teams face mounting pressure as refinery mismatches and logistics keep Saudi Arabia as the top exporter, anchoring global supply chains amid shifting market dynamics.

For procurement professionals navigating energy markets, understanding the distinction between production and export capacity is critical.

While the United States produces more oil than any other country, it's Saudi Arabia that remains the world's number one exporter.

Which country is the largest exporter of oil?

The US leads global production, accounting for roughly 21% of the world's output, yet it consumes the vast majority domestically. Saudi Arabia, by contrast, exports a far larger share of its total output, consistently ranking as the top exporter by both volume and value. This dynamic creates distinct sourcing implications for organisations dependent on imported crude.

According to the Statistical Review of World Energy, produced by the Energy Institute in collaboration with KPMG and Kearney, Andy Brown and Dr Nick Wayth say: "Geopolitical tensions further complicate the energy outlook. Energy security and affordability remain central concerns competing with the need for climate action."

In 2024, the US remained the world's largest oil producer at 21% of global output, breaching 20 million barrels per day for the first time. Saudi Arabia, though its production dipped slightly, remains the world's top single exporter of crude oil. The Middle East overall is responsible for 40% of all global crude exports.

Together, the top five exporters – Saudi Arabia, Russia, the United States, the United Arab Emirates (UAE) and Canada – supply more than 50% of the world's total crude oil shipments. For procurement teams building resilient supply chains, this concentration presents both opportunity and risk.

Refinery infrastructure challenges

Despite being the world's largest producer, the United States remains a major oil importer. The reason is a structural mismatch between the type of oil the country produces and the infrastructure designed to process it.

Most US shale output is light, sweet crude, low in density and sulphur. Yet, approximately 70% of US refining capacity is optimised for heavy, sour crude. Most refineries were built in the 1970s and 1980s when global supplies of light crude were declining. Upgrading a single refinery to process light crude can cost between US$100m and US$1bn, making the switch economically impractical.

This mismatch creates ongoing import requirements that procurement specialists must factor into long-term contracting strategies. Major production zones like the Permian and Bakken are inland, while coastal refineries often lack pipeline access. California, a top-five producing state, imports roughly 75% of its crude because it is largely disconnected from domestic pipeline networks.

This regulatory framework means it is often cheaper to import oil from Saudi Arabia to a New Jersey refinery than to ship it from Texas, creating procurement scenarios where international sourcing proves more cost-effective than domestic alternatives.

Regulatory and logistics costs

The Jones Act of 1920 requires cargo shipped between two US ports to be carried on American-built, American-owned and American-crewed vessels. Operating a Jones Act tanker can cost nearly three times more than a foreign ship – as much as US$75,000 per day.

Major refiners like Phillips 66 and Valero have long highlighted their Gulf Coast complexity – the ability to process discounted heavy crude into high-value fuel – as a competitive advantage. Phillips 66 recently announced the closure of its Los Angeles Refinery, with CEO Mark Lashier stating in a company press release that the facility's "long-term sustainability was no longer viable given the evolving market dynamics in California."

According to the US Energy Information Administration (EIA), refinery closures combined with rising consumption could reduce US petroleum inventories to their lowest levels since 2000 in the coming years. This projection signals tighter markets and increased price volatility for procurement teams managing energy portfolios.

The Strait of Hormuz, which facilitates 25% of all global seaborne oil trade, experiences ongoing commercial disruption. As geopolitical tensions cause Brent crude to spike to US$80 per barrel, North American production growth continues to serve as a critical buffer.

Supply chain volatility ahead

For procurement professionals, diversifying supplier relationships and building contractual flexibility is essential in managing these geopolitical supply chain risks. The concentration of export capacity among a small number of countries creates vulnerability to regional disruptions.

Saudi Arabia's position as the top exporter means any production cuts or geopolitical events in the region have immediate global implications. The kingdom's ability to adjust output levels makes it a swing producer, influencing global prices and availability.

Russia's role as the second-largest exporter adds another layer of complexity, particularly given ongoing sanctions and trade restrictions. Procurement teams must navigate compliance requirements while ensuring supply continuity.

The interplay between US production growth and its continued import dependence creates unique opportunities for strategic sourcing. Understanding these dynamics enables procurement professionals to build more resilient and cost-effective energy supply chains.