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Oil isn’t just about filling up your car; it’s about how oil shapes economies, politics, and global markets. From the black gold beneath the earth to the dollars it generates, here’s a deep dive into everything you need to know about oil money.

What Is Oil Money?

Oil money refers to the wealth generated from the extraction, sale, and trade of oil. Since oil is a major global commodity, countries that produce and export oil make a lot of cash from it. This wealth can significantly impact a nation’s economy and its place on the world stage.

Here is a look into how much oil money these countries pump out every year!

Rank	Country	Production (2023)	Estimated Revenue per Year (USD)
1	United States	21.91 million bpd	$639.67 billion
2	Saudi Arabia	11.13 million bpd	$325.85 billion
3	Russia	10.75 million bpd	$314.60 billion
4	Canada	5.76 million bpd	$168.19 billion
5	China	5.26 million bpd	$153.24 billion
6	Iraq	4.42 million bpd	$128.93 billion
7	Brazil	4.28 million bpd	$124.96 billion
8	United Arab Emirates	4.16 million bpd	$121.31 billion
9	Iran	3.99 million bpd	$116.68 billion
10	Kuwait	2.91 million bpd	$85.03 billion

OPEC: The Boss of the Oil Game

When it comes to global oil, OPEC is like the puppet master pulling all the strings. The Organization of the Petroleum Exporting Countries, better known as OPEC, isn’t just some random group of nations—it’s an oil cartel with massive influence on how much you pay at the pump and how countries around the world manage their energy policies. Founded in 1960 with just five members—Saudi Arabia, Iran, Iraq, Kuwait, and Venezuela—OPEC has since grown to 13 countries.

Country	Date of Joining OPEC
Saudi Arabia	September 1960
Iraq	September 1960
Iran	September 1960
Kuwait	September 1960
Venezuela	September 1960
Libya	December 1962
United Arab Emirates	November 1967
Algeria	July 1969
Nigeria	July 1971
Gabon	January 1975 (left 1995, rejoined July 2016)
Angola	January 2007
Equatorial Guinea	May 2017
Republic of the Congo	June 2018

The Origins of OPEC

Back in the late 1950s, the oil game was totally dominated by a handful of big Western oil companies, often called the “Seven Sisters.” These companies were essentially running the show, deciding the price of oil and how much was produced. Oil-rich countries in the Middle East and Latin America were frustrated because they weren’t getting a fair share of the profits. So, they decided to band together and form OPEC in 1960 at a conference in Baghdad. The goal? To wrest control of oil production and pricing away from the big Western companies and give more power to the producing nations.

OPEC’s mission is pretty clear-cut: coordinate oil production policies among member countries to ensure a steady income for producers, secure oil supply for consumers, and maintain stable prices. Basically, they want to make sure the price of oil doesn’t go too high (because that hurts demand) or too low (because that cuts into their profits).

OPEC’s Power Play: Control Over Oil Prices

OPEC’s power lies in its ability to control the supply of oil. If they decide to cut production, global supply shrinks, which typically sends oil prices skyrocketing. On the flip side, if they ramp up production, oil prices can plummet. This strategy gives OPEC an incredible amount of leverage in global markets, and they’re not afraid to use it when they see fit.

Take, for example, the oil embargo of 1973. In retaliation for Western countries supporting Israel in the Yom Kippur War, OPEC slapped an embargo on oil exports to the U.S. and other countries. This led to skyrocketing oil prices and fuel shortages across the Western world. It was a wake-up call that showed just how much power OPEC wielded. That single event sent shockwaves through global markets, and people still talk about it today as a reminder of how OPEC can shake things up.

Who’s Really Running OPEC?

While OPEC is technically an organization of equals, there’s no denying that some members have more sway than others. Saudi Arabia, for example, is the undisputed heavyweight of the group. As the world’s largest oil exporter and the country with the biggest proven reserves, Saudi Arabia can essentially dictate OPEC’s policies. If Saudi Arabia wants to cut production, the rest of OPEC usually falls in line. That’s not to say the other members don’t have a voice, but when it comes to the big decisions, Saudi Arabia is the one calling the shots.

Iran, Iraq, and Venezuela are also significant players in the group, though their influence has waned in recent years due to political and economic issues. Venezuela, for example, has seen its oil production plummet thanks to years of mismanagement and U.S. sanctions. Iran, too, has been hampered by sanctions, limiting its ability to export oil.

Why Does the U.S. Import Oil If It’s the Top Producer?

It’s no surprise that the U.S. holds the title for the world’s top oil consumer. The amount of oil the U.S. burns through is staggering, almost as much as the next three big guzzlers—China, India, and Japan—combined. Why? Well, think about the countless cars, trucks, factories, and power plants. And with a booming transportation sector and energy needs, it’s no shock that America stays glued to that oil needle.

Now here’s a head-scratcher. The U.S. is the top oil producer in the world, yet it still buys oil from other countries. Why? Well, it all comes down to the fact that America uses more oil than it can pump out on its own. Even though U.S. oil production is massive, the country’s thirst for the black gold is even bigger. So, it imports oil from all over—Canada, Mexico, Saudi Arabia, and Iraq, to name a few. The U.S. government even banned Russian oil imports in 2022 after Russia’s invasion of Ukraine, making it even more reliant on other sources.

Venezuela’s Oil Scandals: From Riches to Ruin

Venezuela’s oil story is one of the biggest rollercoasters in modern history. Once considered the richest country in Latin America thanks to its vast oil reserves, Venezuela has seen its oil industry spiral into chaos due to corruption, mismanagement, and political scandals. What was once the backbone of its economy has now turned into a cautionary tale. Let’s take a closer look at how Venezuela went from being an oil powerhouse to a nation struggling to keep its oil industry afloat.

Venezuela struck oil in the early 1900s and quickly became one of the richest countries in the world. By the 1950s and 1960s, it was making huge profits from oil exports. The country’s economy was thriving, with modern infrastructure and a higher standard of living compared to other Latin American nations. Its oil company, PDVSA, was a major player globally, and oil made up about 90% of Venezuela’s exports, fueling its prosperity.

The Decline: Chavez Takes Over

Things started to go downhill when Hugo Chávez became president in 1999. He nationalized the oil industry, meaning the government took control of PDVSA. Chávez used the money from oil to fund social programs aimed at helping the poor. But in the process, he fired many skilled oil workers and replaced them with people loyal to his government. This led to poor management and inefficiencies that hurt the company in the long run.

Corruption Creeps In

As time went on, PDVSA became more corrupt. Billions of dollars that should have been reinvested in the company or the economy were stolen by politicians and their friends. One major scandal involved the former president of PDVSA, Rafael Ramírez, who was accused of selling oil at low prices to insiders who then sold it internationally for massive profits. This corruption drained PDVSA’s funds and crippled its ability to maintain oil production.

Maduro’s Reign: A Deeper Crisis

When Nicolás Maduro took over after Chávez’s death in 2013, the problems worsened. Oil prices dropped, and the Venezuelan economy, which depended heavily on oil, began to crumble. Corruption in PDVSA continued, with officials involved in money laundering schemes that saw billions of dollars stolen. Meanwhile, oil production plummeted as the company’s facilities fell into disrepair.

U.S. Sanctions

On top of the internal issues, U.S. sanctions in 2019 further crippled Venezuela’s oil industry. These sanctions blocked Venezuela from selling oil to international buyers, cutting off a vital source of revenue. While the government tried to secretly sell oil to countries like China, the damage was done.

The Human Cost

The collapse of Venezuela’s oil industry has had a devastating impact on its people. What was once a wealthy nation has plunged into poverty, with food shortages, hyperinflation, and millions fleeing the country to escape the economic crisis. Oil money, which once brought prosperity, has now left the country struggling to survive.