Global Oil Consumption Hits Record 101.8 Million BPD in 2024

Global oil consumption reached a record high of 101.8 million barrels per day (bpd) in 2024, according to the latest Statistical Review released by the Energy Institute in collaboration with KPMG and Kearney. This represents a slight increase of 0.7% compared to 2023 levels. The report highlights significant shifts in global energy trends influenced by changing geopolitics, economic recovery, and ongoing discussions around energy security and decarbonization.

Despite steady oil production and consumption rates, the distribution of demand has shifted dramatically. Over the past decade, global oil demand has risen by an average of 1% annually, predominantly driven by non-OECD countries. The United States remains the largest consumer, accounting for 18.7% of the global market. U.S. daily consumption experienced a slight decline from 2023 levels, though it has increased by 0.5% annually over the last ten years.

China follows as the second-largest consumer, making up 16.1% of global demand. In 2024, China’s daily oil consumption fell by 1.2% to 16.4 million bpd, marking a significant departure from its previous average growth of 4% per year. Analysts suggest this could indicate a potential plateau in China’s oil demand, influenced by a slowing economy and a shift towards electrification in transportation.

Conversely, India’s oil consumption is on the rise, increasing by 3.1% year-over-year to 5.6 million bpd. The growth is attributed to the country’s expanding economy and a burgeoning middle class, positioning India to become the third-largest oil consumer globally within a few years.

Global Oil Production Trends

On the production front, global output reached a record 96.9 million bpd, exceeding pre-pandemic levels by 1.8 million bpd and reflecting a 9% increase from the lows experienced during the COVID-19 pandemic. The resilience observed in production is noteworthy; however, deeper insights reveal complexities beneath the surface.

The United States leads in total oil production, achieving 20.1 million bpd. This figure includes a substantial amount of natural gas liquids, which are not typically used as direct transportation fuels. When isolating crude oil and condensate—considered “true oil”—U.S. production stands at 13.2 million bpd. While this is a record output, the 2% increase from 2023 is significantly lower than the 4.2% average annual growth seen over the last decade, suggesting a potential plateau in U.S. production.

Russia ranks second in production, contributing 10.2 million bpd of crude oil and condensate, a 3.1% decrease from 2023, primarily due to Western sanctions and logistical challenges. Despite these constraints, Russia has maintained robust exports to China and India, ensuring its continued presence in global energy markets.

Saudi Arabia experienced a decline in production as well, recording 9.2 million bpd, the lowest since 2011. This 4.2% drop reflects both voluntary production cuts aimed at supporting prices and ongoing concerns regarding the Kingdom’s spare capacity, amidst significant domestic investments in refining and petrochemical sectors.

Future Implications and Energy Security

The report also discusses global oil reserves, which stood at 1.7 trillion barrels as of the end of 2020, sufficient to sustain current production levels for approximately 53.5 years. However, reserves are unevenly distributed, with Venezuela holding the largest proved reserves at 304 billion barrels, though much of this oil is challenging to extract. Saudi Arabia and Iran follow with 298 billion and 158 billion barrels, respectively, while the U.S. holds 69 billion barrels.

The 2025 Statistical Review indicates that oil markets in 2024 were characterized by a precarious balance between production and consumption, leading to relatively contained price volatility. Factors contributing to this equilibrium—including OPEC+ coordination, U.S. shale production resilience, and muted global demand growth—are vulnerable to disruption.

As we look ahead, several strategic questions arise that could significantly impact global inflation, trade, and energy security. The findings confirm that oil remains central to the global economy, with increasing demand in developing nations and concentrated production among a few key players. Despite the ongoing focus on energy transition, the economic and geopolitical relevance of oil shows no signs of diminishing.

In the coming weeks, further analysis will delve into key findings concerning natural gas, coal, renewables, and nuclear power trends, providing a comprehensive understanding of the evolving global energy landscape. One thing remains clear: the significance of oil in the modern world is as pronounced as ever.