Oil

Energy Mix

34% of world 🌎 (#1 resource)
38% of U.S. 🇺🇸 (#1 resource)

Electricity Generation

2% of world 🌎 (#7 resource)
< 1% of U.S. 🇺🇸 (#9 resource)

Transportation Energy

91% of world 🌎
89% of U.S. 🇺🇸

Change in Global Consumption

Increase:
⬆ 3%
(2019-2024)

36% of world 🌎
44% of U.S. 🇺🇸
energy GHG emissions are from oil
(includes methane leakage)

Energy use is responsible for ~75% of global GHG emissions.

(Visit our Natural Gas page for more information on methane leakage)

Oil Use for Transportation Is a Major Contributor to Outdoor Air Pollution

12% of world 🌎
21% of U.S. 🇺🇸
PM2.5 emissions come from transportation

PM2.5, particulate matter smaller than 2.5 microns, emissions pose the greatest risk to health. Other pollutants include carbon monoxide (CO), nitrous oxides ( NO_x), and ozone (O₃).

Adverse health effects from transportation (e.g., vehicle exhaust, brake and tire wear) include cancer, cardiovascular disease, respiratory diseases, diabetes mellitus, obesity, and reproductive, neurological, and immune system disorders.

In the U.S., vehicle standards (e.g., Tiers 1, 2, and Tier 3 for light-duty vehicles, diesel engine rules, and clean fuel programs since the 1970s) have significantly reduced transportation-related PM2.5 pollution and its health impacts. 

Electric vehicles can further reduce air pollution and its health effects.

Largest Proved Reserves

Venezuela 18% 🇻🇪
of global proved reserves

Largest Producer

U.S. 21% 🇺🇸
of global production

Largest Consumer

U.S. 19% 🇺🇸
of global consumption

Largest Proved Reserves

Texas 42%
of U.S. proved reserves

Largest Producer

Texas 43%
of U.S. production

Largest Consumer

Texas 21%
of U.S. consumption

Total Traded

72%
of global production

Largest Exporter

Saudi Arabia 15% 🇸🇦
of crude oil exports

Largest Importer

China 26% 🇨🇳
Europe 22%
of crude oil imports

Leading Refiners

U.S. 18% 🇺🇸
China 18% 🇨🇳
of petroleum product output (gasoline, jet fuel, diesel, etc.)

Drivers

• High energy density in volume and weight of oil; easy to store and transport
• Few alternatives for transport, especially long-haul trucking, shipping, and aviation
• Established infrastructure (e.g., fuel stations, refineries, manufacturing plants)
• Social and environmental externalities are not accounted for in price; subsidies further distort true costs
• Corporate lobby with political influence
• Innovation in extraction drives down costs and increases available resource (horizontal drilling, hydraulic fracking)
• Global and U.S. economies are very dependent on oil
• Desire to maintain economic and political power by exporting countries, including OPEC+

Barriers

• Many externalities: oil spills, air pollution, methane leakage, CO₂ emissions, water use and contamination, land use
• Depletable, non-renewable resource
• National security: geopolitical conditions disrupt supply and price
• Inefficient; significant losses from well to moving people
• Public health: GHG emissions, SOx, NOx, etc. impacts near wells, refineries, and pipelines; past use of leaded gasoline
• Legacy infrastructure and pollution issues with abandoned wells and closed refineries

Climate Impact: High

• Carbon dioxide is released during combustion
• Methane leaks during extraction and production

Environmental Impact: High

• Ecosystem disturbance from exploratory wells, road construction, seismic techniques of exploration during prospecting
• Significant land impacts, habitat destruction, and water contamination during extraction
• Groundwater and soil damage from improper disposal of saline water pumped from the ground and oil and gas leakages from improperly maintained wells
• Potential thermal pollution of water from refineries and industrial cooling
• High energy and water requirements for extraction and refining
• Irresponsible oil production can lead to seismicity
• Oil spills
• Air pollution from combustion (NO_x, SO₂, particulate matter, volatile organic compounds)

Updated February 2026