The reintroduction of Iran into the global oil market will create greater competition for sales among the many nations with hundreds of billions of barrels of crude oil reserves.
One result of the nuclear program deal with Iran that is not argued by anyone is that the price of gasoline should drop as Iran re-enters the global crude oil market.
One of the sanctions most powerful against Iran kept that oil-rich country from taking advantage of its surplus of crude on the world market. Free to do business as other nations do, Iran is expected to add to the seeming glut of crude oil that has dropped the price of the product to significant lows.
Using data provided by Michael Cohen, a commodities analyst for Barclays, Business Insider created a list of the 10 countries that are sitting on the largest amounts of crude oil reserves.
Here is the list, starting at:
No. 10 Nigeria – This African nation began producing oil for the global market in the 1970s, and that product is the dominate source of revenue for the country. The drop in price due to increased American production and improved fuel efficiency has had a negative effect on the country, which is sitting on more than 37 billion barrels.
No. 9 Libya –Even more so than Nigeria, Libya is dependent on the sale of crude oil. Recent service disruptions at oil ports cost the country, which has 48.5 billion barrels in reserve.
No. 8 Russia – With 80 billion barrels from a variety of locations throughout the massive country, Russia expects to suffer economically from the reintroduction of Iran in the European markets.
No. 7 United Arab Emirates – Almost 98 billion barrels are available in the land of UAE, which has responded to the oil price plunge by producing more oil to make up for lost revenue.
No. 6 Kuwait – Kuwait benefited greatly from the sanctions on Iran, and is expected to produce even more oil to make up for what is lost by the addition of Iran to the global market. There are 104 billion barrels of oil in reserve in Kuwait.
No. 5 Iraq – Joining the club, Iraq is pumping oil at record rates after losing 30 percent of government revenues in 2014 related to dropping oil prices. Iraq has 140 billion barrels in reserve.
No. 4 Iran – More than 157 billion barrels are available for Iran to re-enter the marketplace. While geopolitical issues figure to play into relations between Iran and other countries, the battle for oil revenues could create problems in relation to both Russia and Saudi Arabia.
No. 3 Canada – Did you know the quiet North American country has more than 173 billion barrels of oil in reserve? It is the largest foreign supplier of oil to the U.S.
No. 2 Saudi Arabia – With 268 billion barrels in reserve, Saudi Arabia agreed with OPEC to maintain production levels in the face of dropping prices. Keep an eye out to see if that continues.
No. 1 Venezuela – This is the wild card in the world’s oil marketplace. With almost 300 billion barrels of crude in reserve, Venezuela gets 40 percent of government revenues from oil sales, and 96 percent of its export earnings come from oil.
Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.
In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.
McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.
McDill is the father of four children, and an active fan of soccer, Jimmy Buffett and all things Disney.