4 Ways Wealthy Men and Women Differ as Investors

There are several key differences between how men and women invest, according to a new white paper published by Spectrem Group, High Net Worth Men vs. Women. This paper examines the different approaches taken by each gender when it comes to handling money and investments.

The paper is based upon data culled from 1,875 high net worth males and 1,277 high net worth females across the U.S., and it uncovered four main differences between how men and women dealt with their assets. Read on for how they differ—the insights can shed some light on how financial advisors can target their services toward one gender vs. another.

1. Women tend to be more conservative. While both genders indicated that they would be focusing their short-term money in stocks or stock mutual funds over the coming year, men focused on this more heavily than women. Almost half of all of the men surveyed said that they would be focusing on equities during the coming year, while only about a third of the women who were polled said that they would do so. The women said that they are slightly more inclined to lean on checking or savings accounts (56% of women compared to 52% of men).

2. Women are much less likely to be self-directed investors. The study showed a significant gap between men and women when it comes to handling their own investments. Only 31% of women said that they wanted to take a hands-on approach to investing their money compared to 39% of men. There was an even bigger difference between men and women when it comes to getting enjoyment and satisfaction out of investing their money. Nearly half of all men said that they enjoy investing compared to less than a third of women. And when it comes to taking risks, only 30% of women said that they would be willing to endure a higher level of risk in order to achieve a greater return, while 44% of men said that they would do so. And 55% of the women surveyed answered that they would like to get a guaranteed rate of return on their investments compared to 46% of men.

3. Men are less likely to seek professional advice. Spectrem’s paper indicates that women are 3% more likely than men to seek advice for specialized needs as well as regular consultations. And 2% more (15-13%) of women reported being completely dependent upon their advisors. Women are also more than twice as likely to use an accountant as their primary financial advisor than men. The study reflected that full-service brokers were the most common type of professional employed, followed by independent financial advisors. Other types of professionals used include bankers, attorneys, accountants and investment managers. But almost 40% of men reported that they don’t use any type of advisor, while just over a fifth of women fell into this category.

4. Perceptions and performance. The way that women perceive their own financial knowledge differs substantially from that of men. More than twice as many women reported having a lack of financial knowledge as men. However, a mere 2% more of the women reported having overall satisfaction with their advisor. But 74% of women reported being satisfied with their advisors’ performance, based upon the advisors’ responses to their requests and their knowledge and performance versus 66% of men.

The Bottom Line
When it comes to investments and money, men tend to take a more hands-on approach and are more likely to rely on themselves to get the job done. Women rely more on advisors and professional help for their needs and are more risk-averse than their male counterparts. Advisors who work with high net worth clients need to tailor their services accordingly in order to build stronger relationships and foster greater client loyalty.

Tips for Maximizing Social Security

Social Security benefits are a significant income source for many retirees—and for some, they’re the only source. How significant an income source it is, however, is determined by several factors that are under retirees’ control.

If you’re nearing retirement (or are already in retirement) and haven’t yet collected Social Security benefits, make sure you fully understand the ins and outs before you fill out your application to receive money. Here are some top tips you can use to get the most out of your well-deserved Social Security benefits.

Delay Receiving Benefits
Delaying receiving benefits is the top and the most common way to maximize the money you receive. Generally, the longer you wait after you reach full retirement age (FRA), the more money you can get every month.

Full retirement age varies depending on when you were born and is defined by the Social Security Administration as “the age at which a person may first become entitled to full or unreduced retirement benefits.”

If you were born between 1937 and 1954, your FRA  is age 65 to age 65 and 10 months, depending on the exact year of birth. If you were born between 1943 and 1954, you FRA is 66. Birth years from 1955 to 1959 range from 66 and two months to 66 and 10 months. A person born in 1960 or later reaches FRA at 67.

While it’s true that you’ll receive more money from Social Security if you wait several years to receive benefits until after you reach full retirement age, it’s also true that your benefits will be reduced if you choose to receive them before full retirement age.

“When to Start Receiving Retirement Benefits,” a publication from the Social Security Administration, gives an example of someone who has a full retirement age at 66 with an assumed benefit of $1,000 per month. If they take their Social Security benefits early at age 62, their monthly benefit would go down to $750 per month. However, if they were to wait and take their Social Security benefits at age 70, their monthly benefit would go up to $1,320 per month.

Take Advantage of Marital Social Benefits
If you’re married, there are still a few ways to further maximize your Social Security benefits with your spouse if you fit into some new and stringent deadlines. You can claim benefits based on your own earnings, or you can choose to receive up to 50% of the amount that your spouse receives. Keeping this in mind, there are a couple of strategies.

One strategy is to restrict an application. In this scenario, you might be the higher income earner, but you didn’t make so much money that your spouse would be best off with spousal benefits. You might want, in this situation, for your spouse to claim Social Security benefits first. You can get the spousal benefit and allow your benefits to grow until you are age 70. Once you reach that age, you can apply for benefits. Your spouse can either continue taking their own benefit or take the spousal benefit if that is now higher.

Invest Your Benefits Check
While many retirees focus on how to get the most out of their Social Security benefits, don’t forget to consider how you can actually invest the money you receive to make even more money.

Delaying Social Security benefits is a fantastic idea if you know that you’re going to get an 8% return on your benefit. But what about once you receive the money? Should you spend it? Do you have to spend it? Perhaps not.

If you have a 401(k) or other retirement benefits from your working years, why not try to live off of those and invest your Social Security checks for the future? It’s not a bad idea. In fact, it could save you from having to go back to work if you encounter a number of unexpected expenses during retirement.

Try this: Use a life expectancy calculator to get a rough idea of how much longer you’ll live. If you’re just now retiring, you might have another 20 years to cover with your income. Let this sink in – 20 years is a long time! A lot can happen between now and then, and you’re going to want to be financially prepared.

If you can live on less money than you’re bringing in, invest as many Social Security dollars you can into your future. Seek the help of a financial advisor who can walk you through the process of investing. A good financial advisor will put your money into conservative investments designed for your risk tolerance and goals.

The Bottom Line
Utilizing any or all of these three strategies will help you get the most out of your Social Security benefits and help you have a retirement without basic financial worries. Of course, you should consider enlisting a financial advisor to help walk you through these strategies and to recommend solid investing strategies.

Tips for Handling Married Couples Finances

If you don’t think that money can be a stumbling block on the quest for true love, maybe you just haven’t watched enough romantic comedies. From the 1930s to the present, rom-coms are chock full of marrying for money (or breaking up based on the lack of it), lavish expenditures, bankruptcies, rich fathers, maxed out credit cards and — lately — student loans and post-Recession economic woes.

Just as in the movies, it doesn’t seem to matter whether the stress in your relationship comes from having too much money or not having enough. In fact, according to a 2015 survey by SunTrust bank, nearly half of couples — regardless of income — reported that their spending habits were different from their partner’s. That discrepancy may understandably cause relationship stress. Over a third of survey respondents claimed that money was at the root of their problems.

That gives financial advisors a front-row seat on couples’ money drama: from clashing expectations and different values to circumstance-driven stressors like lost jobs, bad investments and unforeseen medical expenses. Even what might be assumed to be a positive — a family inheritance, investment property or a trust fund — can easily drive a wedge between a couple if they don’t share the same perspective on how to manage the asset.

Here are a few proactive ways to ensure that your strategy for managing couples in discord rises above mere damage control. (For related reading, see: How Advisors Can Help Couples Agree on Finances.)

Become a Psychologist
As an advisor, you probably already know that conflicts about money are often really about issues other than money. By asking questions that help you get to know a couple — about their dreams, goals, interests and backgrounds — you’ll have a more global perspective to draw upon when friction does arise. If one spouse’s retirement dream is buying a yacht and the other’s is moving to Hawaii to save endangered sea turtles, your job is to find a reasonable way to convert those dreams into a single, actionable plan with solid financials. Understanding what motivates and drives each person will help you not only build and protect their assets, but it will also stave off a situation where one spouse feels that their goals and desires are compromised.

That psychologist’s mindset extends to your clients’ family background. A successful client who scrupulously saves — yet refuses to invest in more profitable, higher-yield funds — may harbor fear of loss and risk that comes from a poverty-stricken childhood or a parent who gambled away the family home. Remember that with couples, you’re dealing with two separate adults with complex family histories that may be widely divergent in how they dealt (or neglected to deal) with finances. Being sensitive to hot-button emotional issues will allow you to help couples feel they’re on the same team with the same goals, regardless of how they were raised to deal with money. (For more, see: Top 6 Marriage-Killing Money Issues.)

Open Up a Dialogue
When friction about money arises between two people, it doesn’t always reflect something deeper than a simple lack of communication. That’s why asking questions is so important: advisors who open up a dialogue between a couple facing money issues may find that even basic questions may have gone unaddressed.

Misunderstanding may be more the result of benign ignorance than that of actual disagreement. Sometimes it takes an outside party to help address what is unsaid but may be the proverbial elephant in the room, stealthily undermining a couple’s financial goals. You may be surprised by how many couples, prior to marrying or moving in together, fail to directly address expectations around debt, budgets, and each partner’s role contributing to the family income. While 41% of couples in the SunTrust survey reportedly took more than three months to discuss financial issues, 7% admitted that they never discussed finances at all.

Be Observant
Much of what couples say about money while meeting with an advisor may not be said at all. Watch for telltale body language like crossed arms — a classic defensive pose — or eye rolls, which usually spell frustration at best and disrespect at worst. Rather than confronting such behavior, a nonjudgmental acknowledgement of a client’s feelings helps to dissolve tension and encourage the frustrated party to speak up. (For related reading, see: Kids or Cash: The Modern Marriage Dilemma.)

Write it Out
If a couple simply won’t open up during conversation, ask them to separately write down their financial goals. The act of writing, especially by hand, can encourage objectivity and empathy. People are more apt to reflect when they write, whereas speaking can lend itself to more impulsivity, which can lead to the kind of heated discussions that are ultimately unproductive for your clients — and for your business relationship.

The Bottom Line
When couples dig in their heels, it may be time to focus on the numbers. Perhaps each spouse refuses to compromise on their ideals: one wants to save their money for travel in retirement and send the kids to in-state public schools, the other wants to sink the bulk of it into college savings funds to bankroll pricey tuition at the mother’s Ivy League alma mater. While these spouses may be unwilling to give up ground when the conflict is framed like this, they’re more likely to open up dialogue about cold, hard numbers. By sticking to the figures, you might surprise your clients by finding a solution that humors them both — without ever picking ideological sides. (For related reading, see: How to Advise Clients Who Marry Later in Life.)

The Biggest Oil Producers in Asia

Asia accounted for more than 9.2% of the world’s oil production in 2014. The region was led by China and India, the world’s fourth and 20th biggest oil-producing nations, respectively. In recent years, Asia’s share of world oil production has been on a slow but regular decline. This is primarily a consequence of flat regional oil production during a period of rising overall global output.

In the five years from 2010 to 2014, Asian oil output rose slightly from about 8.5 million barrels per day in 2010 to just over 8.6 million barrels per day in 2014. During the same period, world oil production grew more than 5%, from about 88.1 million barrels per day to about 93.1 million barrels per day. While a number of countries in the region have discovered large new reserves, others face declining production from aging oil fields. Consequently, analysts expect recent production trends to continue for the region as a whole.

1. China
China is the biggest oil producer in the region by a substantial margin, accounting for nearly 4.6 million barrels of oil per day in 2014. It is responsible for nearly 53% of Asia’s total production. According to the U.S. Energy Information Administration (EIA), Chinese oil production has grown every year since 1981 without exception. In the most recent five-year period from 2010 to 2014, production grew a total of about 4.6%.

The oil industry in China is led by several of the largest energy companies in the world: China Petroleum and Chemical Corporation, known as Sinopec; China National Offshore Oil Corporation, or CNOOC; and China National Petroleum Corporation, or CNPC. In 2014, these three companies combined to produce a total of over 1.4 billion barrels of oil in China, more than 85% of the country’s total annual production. In the same year, the companies combined to produce an additional 630 million barrels of oil in dozens of countries around the world.

2. India
India accounted for production of about 978,000 barrels of oil per day in 2014, the fifth year in a row daily production neared but did not clear the 1 million barrel mark. While production growth has essentially flatlined in recent years, oil consumption in India continues to grow by leaps and bounds. National oil consumption reached nearly 3.7 million barrels per day in 2013, the most recent year for which data is available. In the five years from 2009 to 2013, Indian oil consumption grew a total of more than 19.3%, far outpacing domestic production. As of 2013, India is the fourth largest oil importer in the world.

Oil production in India is dominated by the state-owned enterprise, Oil and Natural Gas Corporation, which accounted for roughly 60% of domestic production in 2013. An additional 27% of Indian oil is produced by Cairn India Limited, the Indian subsidiary of the British oil and gas company, Cairn Energy PLC.

3. Indonesia
Indonesia comes in just behind India with production of about 911,000 barrels per day in 2014. In the 1990s, when production was at a high, Indonesia produced between 1.5 million and 1.7 million barrels per day. Since that period, however, production has followed a nearly unbroken downward trend to the current level. In 2009, the combination of declining production in aging oil fields and rising domestic demand led Indonesia to exit Organization of the Petroleum Exporting Countries (OPEC), of which it had been a member since 1962.

PT Chevron Pacific Indonesia, a subsidiary of the American energy giant Chevron Corporation, is Indonesia’s biggest oil producer, accounting for about 40% of production in 2014. Indonesia’s state-owned energy company, PT Pertamina, was responsible for an additional 26% of the country’s production. Foreign oil companies including Total SA, ConocoPhillips Co. and CNOOC are also significant producers.

4. Malaysia
Malaysia produced about 697,000 barrels of oil per day in 2014, most of which was extracted from offshore fields. Over the course of more than two decades since 1991, production in the country fluctuated between 650,000 and 850,000 barrels per day. According to the U.S. EIA, recent downward production trends can be attributed largely to declining output on aging oil fields. The Malaysian government is responding by encouraging investment in recovery technology and new field development.

Petroliam Nasional Berhad, also known as Petronas, is Malaysia’s state-owned energy corporation. It controls all oil and gas resources in the country and is responsible for development of those assets. International integrated oil and gas companies, such as Exxon Mobil Corporation, Murphy Oil Corporation and Royal Dutch Shell plc, are involved with Petronas in oil production activities in Malaysia, including partnerships in enhanced oil recovery projects on aging oil fields.

5. Thailand
Oil production in Thailand has trended upward in recent years, rising from about 390,000 barrels per day in 2010 to nearly 502,000 barrels per day in 2014. This performance continues a nearly unbroken growth trend that began in 1980 when the country produced only 1,300 barrels per day. Despite this growth, Thailand must import large quantities of oil to meet its domestic demand. In 2013, Thailand consumed nearly 1.2 million barrels of oil per day, requiring net oil imports on the order of 700,000 per day to meet demand.

Chevron is the biggest oil producer in Thailand. It operates Thailand’s largest oil field, Benjamas, and has investments in many other important production sites in the country. Thailand’s state-owned oil company, PTT Exploration and Production, is the country’s second-largest oil producer. Other international companies involved in oil production in Thailand include Coastal Energy Company and Salamander Energy plc.

6. Vietnam
Vietnam has maintained oil production volumes between 300,000 and 400,000 barrels per day since 2000. Its daily production in 2014 amounted to about 316,000 barrels. In 2011, offshore exploration and drilling activities raised Vietnam’s proven oil reserves from 600 million barrels to 4.4 billion barrels, rocketing it into third place in Asia after China and India. Industry analysts expect further discoveries as exploration of Vietnam’s offshore waters continues.

Vietnam’s state-owned oil and gas company, PetroVietnam Gas Joint Stock Corporation, is involved in all oil production in Vietnam via its production subsidiary, PetroVietnam Exploration Production Corporation, and its joint ventures with international oil companies. Chevron, Exxon Mobil and the Russian company, Zarubezhneft OAO, are several of the largest international producers operating in Vietnam.

The Biggest Oil Producers in Africa

The African continent is home to five of the top 30 oil-producing countries in the world. It accounted for more than 8.7 million barrels per day in 2014, which is about 9.4% of world output for the year. This level of production is down somewhat from the heights of 2005 to 2010 when African production topped 10 million barrels per day, including a high of nearly 10.7 million barrels per day in 2010. As of 2015, declines are due mostly to political and civil instability and violence in many of Africa’s biggest oil-producing countries.

1. Nigeria
Nigeria produced more than 2.4 million barrels of oil per day in 2014 to rank as the 13th-largest oil producer in the world. The country has produced between 2.1 million and about 2.6 million barrels per day for the last 18 years. Fluctuations in annual oil production, especially since 2005, can be attributed largely to security problems connected to violent militant groups in the country. While Nigeria is home to the second-largest proven oil reserves in Africa, the U.S. Energy Information Administration (EIA) reports that security issues and other business risks in the country have reduced oil exploration efforts.

The state-owned Nigerian National Petroleum Corporation (NNPC) is responsible for regulating Nigeria’s oil and gas sector, and for developing its oil and gas assets. The NNPC relies heavily on international oil companies to fund development and provide expertise. Most large onshore oil production operations in the country are organized as joint ventures between the NNPC and private oil firms, with the NNPC as majority owner. Comparatively costly and complicated offshore oil developments are typically organized under production-sharing contracts, the terms of which can be adjusted to provide appropriate incentives to international operators. The largest international oil companies operating in Nigeria include Chevron Corporation, Exxon Mobil Corporation, Royal Dutch Shell plc, Total S.A. and Eni S.p.A.

2. Angola
Angola produced nearly 1.8 million barrels of oil per day in 2014, continuing a period of fluctuating production that began in 2009. Prior to 2009, the country achieved seven consecutive years of production gains in the oil sector, raising the average output from 742,000 barrels per day to nearly 2 million barrels per day. These gains were primarily the result of new production from deepwater oilfields offshore. Most oil production in Angola takes place offshore, as violence and conflict have limited exploration and production activities onshore.

The Sociedade Nacional de Combustiveis de Angola, also known as Sonangol, is Angola’s state-owned oil company. It oversees virtually all oil and gas development in the country. Most exploration and production operations in Angola are headed by international oil companies operating in joint ventures or under production-sharing agreements with Sonangol. Some of the biggest oil companies in Angola include Chevron Corporation, Exxon Mobil Corporation, Total S.A., Statoil ASA, Eni S.p.A. and China National Offshore Oil Corporation, also known as CNOOC.

3. Algeria
Algeria produced just over 1.7 million barrels of oil per day in 2014 to maintain its position among the top tier of African oil producers. However, 2014 marks the second consecutive year of falling production in the country, amounting to a total of more than 150,000 barrels per day of lost production. According to the EIA, these declines are primarily a result of delayed investments in new infrastructure and new production projects. In the nine years prior to 2013, Algerian oil production was fairly consistent, averaging around 1.9 million barrels per day. In addition to its substantial oil output, Algeria also ranks as the top natural gas producer in Africa.

Entreprise Nationale Sonatrach is Algeria’s state-owned oil and gas company. Under the Hydrocarbon Act of 2005 and its subsequent amendments, Sonatrach must retain a minimum of 51% equity in all oil and gas projects in the country. As of 2014, Sonatrach controls approximately 80% of oil and gas production in the country. International oil companies make up the remaining 20%, albeit through joint ventures and similar arrangements with Sonatrach. International oil majors involved in Algerian oil production include BP plc, Repsol S.A., Total S.A., Statoil ASA, Eni S.p.A. and Anadarko Petroleum Corporation.

4. Egypt
Egypt produced 668,000 barrels of oil per day in 2014, the fourth consecutive year of falling production. Declines totaled about 9.3% during that period, which is especially problematic given the 3% annual growth in oil consumption in the country during the last decade. According to the EIA, the decline in Egyptian production is mostly attributable to maturing oil fields. Exploration activities continue in the country in the hopes of boosting domestic production to keep up with ever-increasing domestic demand.

Egypt’s state-owned oil company, Egyptian General Petroleum Corporation (EGPC), controls all oil production in the country. EGPC partners with a number of international oil companies in offshore and onshore production operations in Egypt. Eni S.p.A. and BP plc are major shareholders in offshore Egyptian production assets. The American oil company Apache Corporation is a partner in production assets in Egypt’s Western Desert.

5. Libya
Libya produced about 516,000 barrels of oil per day in 2014, a decrease of more than 47% from the previous year. This decline was primarily a result of national protests that broke out in 2013. The country saw even more severe disruptions in oil supply during the Libyan civil war in 2011, when production declined from about 1.8 million barrels per day in 2010 to a daily average of 500,000 barrels the next year. Prior to 2011, Libya maintained oil production above 1.7 million barrels per day for six consecutive years. The country contains proven reserves of oil amounting to about 48 billion barrels, which is the most in Africa.

The state-owned National Oil Corporation has controlled the oil and gas sector in Libya for many years. However, the civil unrest in the country has precipitated a power struggle that has yet to be concluded as of September 2015. International oil companies were active in Libyan oil production prior to this period, but the future will remain cloudy until the instability is resolved. International oil companies with operations in Libya include ConocoPhillips Co., Repsol S.A., Total S.A., Eni S.p.A. and Occidental Petroleum Corporation.

The Biggest Oil Producers in the Middle East

The Biggest Oil Producers in the Middle East

The Middle East was responsible for producing nearly 27.9 million barrels of oil per day in 2014, about 30% of world production. The region includes four of the top eight oil-producing countries in the world and six of the top 14. Most oil production in the Middle East is dominated by state-owned enterprises. However, many international oil companies engage in oil production and related activities across the region through joint ventures, production-sharing agreements and other business models.

1. Saudi Arabia
Saudi Arabia produced more than 11.6 million barrels of oil per day in 2014, nearly 12.5% of world output or about one out of every eight barrels. The country ranked as the world’s biggest oil producer in the decade from 2003 to 2012, after which it fell to second place due to surging oil production in the United States. Saudi Arabia remains the world’s largest petroleum exporter. With proven oil reserves of about 266 billion barrels and relatively low production costs, Saudi Arabia should maintain its position as a top-three oil producer for the foreseeable future.

Saudi Arabia’s oil and gas industry is controlled by Saudi Aramco, which is itself controlled by Saudi Arabia’s Ministry of Petroleum and Mineral Resources and the Supreme Council for Petroleum and Minerals. Saudi Aramco is not publicly traded. Although international oil companies do not participate in oil production in Saudi Arabia, several companies partner with Saudi Aramco in joint-venture refineries and petrochemical plants in the country. These partners include Exxon Mobil Corporation, Royal Dutch Shell plc, Sumitomo Chemical Co., Ltd. and Total S.A.

2. United Arab Emirates
The United Arab Emirates (UAE) is a federation of seven emirates, including Dubai and the capital of the federation, Abu Dhabi. UAE produced nearly 3.5 million barrels of oil per day in 2014 to rank as the world’s sixth-biggest producer. Each of the seven emirates controls oil production within its borders. However, Abu Dhabi is home to about 94% of the proven oil reserves in UAE territory and, thus, it has an outsized role in establishing the federation’s oil policy.

The state-owned Abu Dhabi National Oil Company (ADNOC) controls oil production operations in Abu Dhabi under the direction of the emirate’s Supreme Petroleum Council. Most oil production in Abu Dhabi is organized under production-sharing agreements between ADNOC and international oil companies. Other emirates utilize similar production-sharing agreements and service contracts to organize oil production. Some of the biggest international companies involved in UAE oil production include BP plc, Royal Dutch Shell plc, Total S.A. and Exxon Mobil Corporation.

3. Iran
Iran produced about 3.4 million barrels of oil per day in 2014, the third consecutive year of depressed production. Prior to 2012, Iran produced more than 4 million barrels of oil per day for eight consecutive years. Most of the recent production downturn can be attributed to the effects of international economic sanctions placed on Iran during this period. According to the U.S. Energy Information Administration (EIA), sanctions have had especially severe effects on upstream oil and gas investment, including numerous cancelled investment projects.

In July 2015, Iran came to an agreement with the permanent members of the U.N. Security Council and Germany on the Joint Comprehensive Plan of Action (JCPOA), in which Iran agreed to strict limits on its nuclear program in exchange for the removal of international economic sanctions. As of September 2015, implementation of the agreement on Iran’s part is expected no earlier than the first half of 2016. Once Iran has met all of its initial obligations with respect to the JCPOA, sanctions are to be lifted.

Oil and gas production in Iran is controlled by the state-owned National Iranian Oil Company (NIOC) under the direction of the Supreme Energy Council. While the Iranian constitution bans private or foreign ownership of the country’s natural resources, international companies have historically participated in oil exploration and development in the country through buyback contracts, a contract model that does not convey equity rights to the international company. According to the EIA, Iran is in the process of developing new oil contract models to attract foreign investments once sanctions are lifted. Other reports suggest Iran plans to invite a number of international oil majors to do business in the country, including ConocoPhillips Co., Exxon Mobil Corporation, Royal Dutch Shell plc and Total S.A., among others.

4. Iraq
Iraq produced nearly 3.4 million barrels of oil per day in 2014, just a few thousand barrels per day fewer than Iran. The country has achieved production gains in every year since 2005, two years after the start of the Iraq War. Production in 2014 was higher than any other year since at least 1980, when the country produced just more than 2.5 million barrels per day. The EIA reports that ambitious development plans are in place to increase oil production in Iraq to as many as 9 million barrels per day by 2020. However, the country faces numerous challenges that could limit progress toward these goals, including political instability, continuing violence and inadequate infrastructure.

Oil production in most of Iraq falls under control of the Ministry of Oil in Baghdad. The Ministry operates through several state-owned companies, including the North Oil Company, the Midland Oil Company, the South Oil Company and the Missan Oil Company. In the autonomous Kurdistan region of Iraq, oil production is controlled by the local Ministry of Natural Resources. Well more than a dozen major international oil companies are involved in Iraqi oil production. U.S. and European oil majors include Exxon Mobil Corporation, Occidental Petroleum Corporation, BP plc, Royal Dutch Shell plc and Total S.A. Other international oil giants in Iraq include China National Petroleum Corporation, known as CNPC; China National Offshore Oil Corporation, known as CNOOC; Malaysia’s Petroliam Nasional Berhad, known as Petronas; and Gazprom Neft OAO.

5. Kuwait
Kuwait produced almost 2.8 million barrels of oil per day in 2014, placing it just outside the top 10 oil producers in the world. It has maintained consistent production of between about 2.5 million and 2.8 million barrels per day for more than a decade. However, according to the EIA, Kuwait has been struggling to raise production to 4 million barrels per day during this period, falling short due to inadequate foreign investment and related delays in new oil production projects.

The Ministry of Petroleum carries out oil policy in Kuwait through the state-owned Kuwait Petroleum Corporation and its subsidiaries. International oil companies have long been denied access to Kuwait because the Kuwaiti constitution does not allow foreign companies ownership stakes in Kuwaiti natural resources, or the revenues associated with those resources. This means standard joint ventures and production-sharing agreements used in other countries are outlawed in Kuwait.

In 1988, the Ministry of Petroleum spearheaded a plan to increase oil production in Kuwait by attracting international operators through the use of incentivized contract models allowable under the constitution. However, the country’s National Assembly, which is responsible for approving all such contractual agreements, is not fond of the program and has delayed its implementation for years.

The US States That Produce the Most Oil

The US States That Produce the Most Oil

A boom in oil production is profoundly changing the U.S. economy and impacting worldwide energy markets. As of 2015, 90% of U.S. oil production, excluding federal offshore drilling, comes from eight states: Texas, North Dakota, California, Alaska, New Mexico, Oklahoma, Colorado and Wyoming. The surge in U.S. output is due in large part to the wide use of horizontal hydraulic fracturing, or fracking, as new technologies give drillers access to some of the largest oil deposits in the world that were once too tight to exploit. Fracking is controversial as some believe the chemicals injected into the wells lead to extensive pollution of the water supply. Some also argue the unconventional horizontal drilling awakens dormant faults, causing earthquakes.

With domestic crude oil production averaging 9.4 million barrels a day over the first six months of 2015, the United States bypassed Russia and Saudi Arabia as the world’s largest producer of crude oil. This increased production is attracting manufacturers back to the U.S. Producing 90% of the energy it consumed in 2014, the U.S. imported less foreign oil every year from 2005 to 2015. Investors looking to get into the domestic energy markets may want to pay attention to shale drillers such as Exxon Mobil Corporation and Chesapeake Energy Corporation, which spent about $120 billion in 2014 in the U.S., more than double the amount spent five years earlier.

Texas

While other states have seen a boom in recent years, Texas is still the epicenter of the U.S. oil industry, with 27 operable refineries, more than any state. Texas produced 1.2 billion barrels of oil in 2014, which accounted for 36% of total U.S. output, and the state has almost one-third of all proven oil reserves with 10.5 billion barrels. If Texas were its own country, it would be the sixth-largest oil producer in the world. With increasing horizontal drilling of the state’s Eagle Ford Shale and Permian Basin, Texas is ramping up production, averaging 3.6 million barrels a day in 2015, up from 3.1 million in 2014. For those looking to invest in Texas, Exxon and Houston-based AT&T, Inc. are a good start.

North Dakota

The North Dakota oil boom is completely transforming the western portion of the state, which rests atop the Bakken Shale formation and the Williston Basin, two of the largest oil reserves in the world. Companies such as Whiting Petroleum Corporation, Continental Resources, Inc. and Hess Corporation are among the largest players in the region making these deposits profitable with the technological advancements in fracking. With oil production increasing by 1,000% between 2003 and 2015, North Dakota has 5.7 billion barrels of proven reserves and produced 397 million barrels in 2014. When combined with output from Texas, the two states provide half the entire U.S. oil output.

California

Excluding federal offshore areas, California ranked third in the nation in crude oil production with over 200 million barrels in 2014. Despite an overall decline in production since the mid-1980s, California has 2.9 billion in proven reserves, behind only Texas and North Dakota. California ranks third in the nation in petroleum refining capacity and accounts for more than one-tenth of the total U.S. capacity. To meet strict federal and state environmental regulations, California refineries are configured to produce cleaner fuels, and they often operate at or near maximum capacity because of the high demand for these petroleum products.

Alaska

While oil production has slowed in recent years in response to enhanced exploration and drilling in the plains, Alaska is still one of the largest oil-producing states with 181 million barrels of output and 2.9 billion barrels in reserve in 2014. The North Slope contains more than a dozen of the largest oil fields in the U.S. Although production has fallen to less than 300,000 barrels per day from its peak of 1.6 million barrels per day in 1988, the region is still one of the most profitable for ConocoPhillips Co.

Oklahoma

Production in Oklahoma has more than doubled since 2005 to more than 128 million barrels in 2014, pushing its way into the top five of the most productive oil-producing states. Oklahoma is the intersection of many of the largest national pipelines. The small city of Cushing is home to the world’s largest oil storage facility, where one-fifth of the country’s commercial crude oil is stored and where the primary U.S. oil price, known as West Texas Intermediate, is determined. Oklahoma City-based Continental Resources, Inc. has a leading presence in the Anadarko Woodford play, and Oklahoma is actively expanding its shale operation throughout the plains.

New Mexico

Thanks to horizontal drilling, primarily in Lee and Eddy counties in the southeastern part of the state, New Mexico’s oil production has more than doubled since 2009, seeing an incredible 30% jump from 2012 to 2013 alone. By producing 124 million barrels in 2014 and with 1.2 billion barrels in reserve, oil production is clearly one of the most important drivers of the state’s economy. This region comprises a confluence of conventional formations and newer shale formations that are shared with Texas’ Permian basin region.

Colorado

While other states may get more publicity about the booming oil industry, Colorado has seen a dramatic increase with production tripling from just 30 million barrels in 2009 to over 94 million in 2014, or about one of every 50 barrels of U.S. output. New production is coming from the Niobrara Shale formation in the Denver-Julesburg Basin in northeastern Colorado. With experts estimating that approximately 2 billion barrels of oil are recoverable from the Niobrara, Colorado’s oil reserves of 896 million barrels are sure to increase.

Wyoming

Thirty-nine percent of U.S. coal comes from Wyoming and is the focus of the state’s energy industry, but oil production continues to increase thanks to ongoing drilling of the Niobrara Shale formation. Wyoming produced 760 million barrels in 2014, with 723 million barrels in reserve. EOG Resources, Inc. is one of the most aggressive drillers in the region with plans to expand with hundreds of new wells.

4 of the Biggest Oil Producers in Latin America



4 of the Biggest Oil Producers in Latin America

Latin American oil production is dominated by Brazil, Mexico and Venezuela, countries that were responsible for about 75% of the region’s total output in 2014. These countries are also giants on the international stage, ranking as the world’s ninth, 10th and 12th biggest oil producers , respectively. Colombia also makes a good showing in the world rankings, coming in at 19th. The following list provides production figures for each of the region’s top four oil producers in addition to a few details on each country’s oil industry.

1. Brazil

Brazil accounted for oil production of about 2.95 million barrels per day in 2014, continuing a nearly unbroken trend of increasing annual oil production since at least 1980. According to the U.S. Energy Information Administration (EIA), more than 90% of Brazil’s oil production is extracted from deep-water oil fields offshore. In recent years, Brazil has made some of the world’s biggest new oil discoveries in its offshore pre-salt basins. In late 2014, national production estimates were updated to reflect developments of these new fields. The country expects production to rise to 4 million barrels per day by 2022.

Petroleo Brasileiro S.A., also known as Petrobras, is the biggest oil producer in Brazil by a substantial margin, accounting for about 2.1 million barrels per day and over 72% of Brazil’s 2014 oil production. The Brazilian government holds 50.3% of the company’s voting shares and controls another 9.9% of the company through shares held by the Brazilian Development Bank. Petrobras is listed on the BM&FBOVESPA exchange in São Paulo and has American Depositary Receipt (ADR) listings on the New York Stock Exchange. International oil companies operating in Brazil include Chevron Corporation, Royal Dutch Shell plc, BP plc, Repsol S.A. and China Petroleum and Chemical Corporation, also known as Sinopec.

2. Mexico

Mexico produced just more than 2.8 million barrels of oil per day in 2014, roughly in line with production figures from the last five years. This level of production is down from previous decades, mostly due to declining output from mature oil fields. From 1991 to 2010, Mexico maintained oil production above 3 million barrels per day, including eight years exceeding 3.5 million barrels per day. While Mexico maintains its position as the third-largest crude oil exporter in the Americas, it has become a net importer of refined products, primarily gasoline and diesel.

From 1938 to 2013, Mexico’s oil industry was monopolized by the state-owned oil and gas company Petroleos Mexicanos, also known as Pemex. Industry reforms were initiated in 2013 in hopes of attracting greater foreign investment to reverse production declines in the country. Pemex remains under state ownership and as of 2015, controls development rights to 83% of Mexico’s proven reserves of oil.

Mexico has not yet been successful in its efforts to attract significant foreign investment. Two offshore exploration and production blocks have been awarded to a consortium including the London-listed Premier Oil plc; the privately held American company Talos Energy, LLC.; and the privately held Mexican company Sierra Oil & Gas S. de R.L. de C.V. However, 12 other blocks available at the same auction failed to attract sufficient bids. Major oil companies including Chevron, BP and Royal Dutch Shell have expressed interest in entering Mexico but are not producing in the country as of September 2015.

3. Venezuela

Venezuela produced nearly 2.7 million barrels of oil per day in 2014. Production in recent years is down from the prior two decades, when daily production fluctuated around the 3 million barrel mark, including a high of more than 3.5 million barrels per day in 1997. As of 2014, proven oil reserves in Venezuela amount to nearly 298 billion barrels; these are the biggest reserves in the world ahead of Saudi Arabia’s 266 billion barrels and Canada’s 173 billion barrels.

The Venezuelan oil industry is dominated by the state-owned oil and gas company, Petroleos de Venezuela S.A. The company was established in 1976 immediately after nationalization of the oil industry. In the 1990s, reforms were introduced to liberalize the industry, but policy instability has been the norm in the years since, especially after President Hugo Chavez came to power in 1999. In 2006, Chavez introduced policies that required renegotiation of existing joint ventures with international oil companies. International operators were required to grant a 60% minimum share of every project to Petroleos de Venezuela. More than a dozen international companies, including Chevron and Royal Dutch Shell, acceded to the demands. The Venezuelan operations of two companies, Total S.A. and Eni S.p.A., were nationalized after renegotiations failed. Other international companies chose to exit Venezuela soon after, including Exxon Mobil Corporation and ConocoPhillips Co.

Although policy uncertainty remains in Venezuela even after the death of Hugo Chavez in 2013, many international oil and gas companies continue to maintain operations in the country. Chevron and the Chinese oil giant China National Petroleum Corporation both signed investment agreements with Petroleos de Venezuela in 2013 to update and expand on existing joint ventures. In 2015, the Russian energy conglomerate, Rosneft OAO, agreed to a $14 billion investment plan, the largest reported international investment in the Venezuelan oil industry in recent years.

4. Colombia

Columbia accounted for production of just more than 1 million barrels of oil per day in 2014. The country has made substantial production gains in recent years, raising output from under 550,000 barrels per day in 2007. According to the U.S. EIA, recent high rates of growth in oil, gas and coal production in Colombia can be attributed to energy industry reforms introduced in 2003. These reforms primarily worked to make investments in Colombian energy exploration and production more attractive to international companies. International investment in the oil industry reached more than $4.8 billion in 2014, about 30% of total foreign direct investment (FDI) in the country. Colombia attracted only $278 million in oil-sector FDI in 2003.

Prior to the 2003 energy reforms, the Colombian oil and gas industry was controlled by Ecopetrol S.A., a state-owned oil and gas company and industry regulator. The reforms removed regulatory functions from Ecopetrol and opened up Colombia to international competition. Ecopetrol remains under the control of the Colombian state, which holds 88.5% of its outstanding shares. The company is listed on the Colombian Stock Exchange and has ADR listings on the New York Stock Exchange and the Toronto Stock Exchange.

Ecopetrol was responsible for producing about 580,000 barrels of oil per day in 2014, approximately 57% of Colombian production. More than 100 international oil and gas companies operate in Colombia, often in joint ventures with Ecopetrol or other operators. The biggest international oil and gas producers in the country include Chevron; Repsol and its subsidiary Talisman Energy, Inc.; Occidental Petroleum Corporation; and Exxon Mobil.

The 6 Biggest Russian Energy Companies

The 6 Biggest Russian Energy Companies

Russia ranks high among the top energy-producing countries in the world. According to the most recent industry data available, Russia is the world’s single biggest producer of crude oil, the second-biggest producer of natural gas and the sixth-biggest producer of coal. Russia also ranks as the fourth-biggest producer of both nuclear power and hydropower.

Most of Russia’s biggest energy companies, including global giants such as Gazprom, Rosneft, and Lukoil, operate primarily in the oil and gas industry, with interests spanning the full length of the oil and gas supply chain. However, a hydroelectric power company, RusHydro, also makes a showing on this list of Russia’s biggest energy companies by market capitalization.

1. Gazprom

Gazprom is Russia’s biggest energy company by a substantial margin. The company controls the largest natural gas reserves in the world, from which it produced more than 2.6 billion barrel of oil equivalents (BOE) in 2014, accounting for 72% of Russia’s total gas output for the year. Oil production amounted to about 257 million barrels. Additionally, Gazprom’s gas turbine power plants account for about 15% of Russia’s installed power generating capacity. Gazprom is ultimately controlled by the Russian government, which holds just over 50% of the company’s outstanding shares. Its market capitalization is nearly $50.5 billion.

2. Rosneft

Rosneft is Russia’s biggest oil producer, accounting for more than 40% of total output in 2014. The company reported production of more than 1.5 billion barrels, more than double the production of its closest competitor, Lukoil. Rosneft also produced over 345 million BOE of natural gas, making it the third-largest gas producer in the country. Rosneft has a market capitalization of more than $41 billion. Nearly 70% of its outstanding shares are held by the Russian state.

3. Lukoil

Lukoil produced about 707 million barrels of oil and more than 92 million BOE of natural gas in 2014 to place it firmly in the top tier of Russian energy giants. Like Gazprom and Rosneft, Lukoil controls large gas and oil reserves inside Russia in addition to substantial operations outside the country. Although the company’s power generation assets have grown substantially in recent years, it accounts for less than 1% of the country’s installed generation capacity. Lukoil has a market capitalization of more than $28.3 billion.

4. Surgutneftegas

Although Surgutneftegas has no substantial business operations outside Russia, it ranks among the world’s largest 250 companies in any industry. It reported production of about 447 million barrels of oil and more than 55 million BOE of natural gas in 2014. The company also maintains a power generation business primarily to produce electricity for its own oil and gas production and processing operations. Surgutneftegas has a market capitalization of over $19.2 billion.

5. Tatneft

Tatneft is another integrated oil and gas company with primary operations focused on the domestic market. It is a far smaller producer than its Russian rivals, reporting production of about 193 million barrels of oil and about 5.5 million BOE of natural gas in 2014. Tatneft’s production and refining operations are focused in Tatarstan, a republic in the Russian Federation. Roughly 36% of the company’s outstanding shares are held by the Tatarstan government. Tatneft has a market capitalization of more than $10.6 billion.

6. RusHydro

RusHydro is the biggest hydroelectric power company in the Russian utilities industry. As of 2014, the company has a total installed electricity generation capacity of about 38.5 gigawatts, just less than Gazprom’s 39 gigawatts of installed capacity. RusHydro also has ongoing wind, tidal and geothermal energy projects, many of which are still in the research and development phase. The Russian state holds nearly 67% of outstanding shares in RusHydro. The company has a market capitalization of nearly $3.5 billion.

Here are the 5 biggest Russian oil companies

As the world’s third-largest oil producer and second-largest natural gas producer, Russia is home to some of the biggest integrated oil and gas companies in the world. In fact, Russia’s biggest companies by oil production volume include several mainstays on lists of the world’s biggest companies.

All of Russia’s largest oil companies maintain substantial upstream and downstream oil and gas operations, including sprawling exploration and production divisions, petroleum refineries and petrochemical plants, and retail service stations. The top five oil companies are ranked here according to oil production volume in 2014, the most recent year for which figures are available.

1. Rosneft

Rosneft is Russia’s biggest oil company, with reported production of about 1.5 billion barrels in 2014. The company also ranks as Russia’s third biggest natural gas company, with production amounting to more than 345 million barrel of oil equivalents (BOE). Rosneft has a market capitalization of nearly $38.7 billion, making it the highest publicly valued company in this list.

Rosneft maintains exploration and production activities across Russia and in 10 other countries, including the United States, Canada, Brazil, Norway and Vietnam. It operates 13 refineries in Russia and has an interest in seven additional refineries in Western and Eastern Europe. Rosneft also operates a network of over 2,400 retail gasoline service stations and is Russia’s largest supplier of jet fuel.

2. Lukoil

Lukoil produced nearly 707 million barrels of oil in 2014 and ranked as the second-biggest producer in the country. The company’s natural gas production came in at more than 92 million BOE on the year. It has a market capitalization of more than $27.7 billion.

In addition to gas and oil exploration and production activities across Russia, Lukoil operates in 12 other countries in Europe, Africa and the Middle East. Its refining and petrochemical operations include six refineries in Russia and an interest in five more refineries in New Zealand and Europe. Lukoil also operates power generation facilities in Russia and gasoline service stations in Russia, Europe and the U.S.

3. Gazprom Neft

Gazprom Neft is a subsidiary of the Russian energy giant Gazprom. Although Gazprom Neft has an independent listing on the Moscow Exchange, its parent holds more than 95% of its outstanding shares. The Russian government, in turn, holds 50% of Gazprom shares.

Gazprom Neft produced about 482 million barrels of oil in 2014. Natural gas production amounted to about 104 million BOE during the year. The company has production operations in Russia, Iraq, Venezuela and several other countries. It operates four refineries in Russia and another in Belarus. Nearly 1,750 Gazprom Neft service stations operate in Russia and Europe. Gazprom Neft has a market capitalization of nearly $10.5 billion.

4. Surgutneftegas

Surgutneftegas falls just behind Gazprom Neft with crude oil production of nearly 447 million barrels in 2014. Gas production rose to about 55.3 million BOE on the year. The company’s operations are mostly confined to the domestic market. In addition to its exploration and production activities, the company operates a refinery and a gas processing plant, produces petrochemicals, and runs a power generation business. Surgutneftegas also operates nearly 300 service stations. It has a market capitalization of over $18.5 billion.

5. Tatneft

Tatneft produced almost 193 million barrels of oil in 2014, in addition to gas production of almost 5.5 million BOE. The company produces oil and gas primarily within Russia, although international projects are in development. Tatneft operates a refining and petrochemical complex, a second refining facility and a gas processing plant. A tire manufacturing facility is housed in the refining and petrochemical complex, where a total of 12.5 million tires were produced in 2013. Tatneft distributes refined petroleum products through its network of more than 650 service stations in Russia, Ukraine and Belarus. The company has a market capitalization of more than $9.7 billion.