In 2016 OPEC and 10 major producers—including Russia—launched OPEC+

The Organization of the Petroleum Exporting Countries (OPEC) was created to coordinate and unify petroleum policies to secure fair and stable prices. During the pandemic, for instance, the organization pushed through production cuts in an attempt to stabilize prices.

This guide explains how investing in oil works with in-depth explanations of each of the forces that control oil’s price. Oil is unique as a commodity in part because of OPEC’s role in regulating its price.

OPEC’s official website offers a comprehensive hub for its core work—featuring press releases, monthly and statistical reports, digital publications like the World Oil Outlook and Annual Statistical Bulletin, and other research center materials.

By 2022, the US had cemented its position as the world’s top oil producer with close to 18 million barrels per day. This eclipsed Saudi Arabia and Russia.

When analyzing the production of crude oil, shale oil, oil sands, and condensates since the start of the 20th century, Saudi Arabia produced more crude oil only in 1977, from 1979 to 1981, and from 1991 to 2016. Nations such as Iraq and the United Arab Emirates produced much smaller quantities than both Saudi Arabia and the US.

The shortages imposed by the Organization of Petroleum Exporting Countries (OPEC) created a global energy crisis and economic instability after the Arab-Israeli War. This led to investments in green technologies and improvements in automobile fuel efficiency and manufacturing.

Specifically, a country’s “spare capacity” signifies the difference between its maximum sustainable oil production and its current output. OPEC member countries hold nearly all of the world’s spare oil production capacity. Historically speaking, Saudi Arabia has been the country with the largest spare capacity.

US oil and natural gas production skyrocketed from 2000 to 2020, largely due to advances in fracking. However, weak global energy prices have prevented this boom from translating into increased profits for fossil fuel companies.

This animated map video vividly illustrates how petroleum shaped global politics and industry—from 18th-century uses and 19th-century drilling booms in North America to today’s OPEC strategies, shale revolution, and geopolitical oil influence.

In fact, the US has been exporting more oil and petroleum products than it imports since August 2021. Petroleum and petroleum product exports totaled about 10.7 million barrels per day, whereas imports totaled about 7.9 million barrels per day.

The oil crises of the 1970s—fueled by Middle East conflict and OPEC's dominance—triggered inflation, price controls, and policy failure. But they also accelerated fracking, alternative energy, and the rise of free-market economics.

Fracking technology has significantly increased how much crude oil the US produces. As more countries adopt fracking technology, there could be an increased downward pressure on prices—although fracking has been widely criticized for its negative environmental impacts.

Most of the world's shale oil resources—which are recoverable via fracking—are found in Russia, the US, China, Argentina, and Libya. The majority of equivalent shale gas resources are found in China, Argentina, Algeria, the US, Canada, and Mexico.

Experts say oil demand has not yet reached its peak. Recent technological breakthroughs in the oil industry include advances in drilling and extraction, as well as subsurface technologies.

The price of a barrel of Brent crude experienced volatility in the early 2020s. This chart shows price spikes at the beginning of the pandemic and again when Russia invaded Ukraine.

Following the June 1967 Arab–Israeli war, Saudi Arabia, Kuwait, Iraq, Libya, and Algeria embargoed oil shipments to the US, UK, and West Germany. While the move did not have a large impact, it reshaped global oil flows, and foreshadowed OAPEC's later actions.

According to estimates derived from available geological and engineering data, the South American country possesses about 303 billion barrels of underground crude oil, followed by Saudi Arabia (267.2 billion) and Iran (208.6 billion). Many of the largest reserves are held by members of the Organization of the Petroleum Exporting Countries.

Oil dependence began with the rise of oil as a commodity, followed by an era of geopolitical competition for the resource after World War II. The domestic fracking boom, which started around 2006, was driven by a desire to reduce the nation's dependence on international adversaries for energy.

Amid the fallout of World War II, Western multinational corporations expanded their control of the production of oil across the oil-rich Middle East, earning the pejorative nickname of the Seven Sisters. In the 1970s, the group’s role diminished as nationalist movements pursued sovereign control of the oil.

This episode of The Rest Is History podcast traces oil's pivotal role—from fueling industrial growth to steering imperial power. It also examines how access to oil shaped US politics, World War II, and sparked the creation of OPEC following the Suez Crisis.

More than half of the US’s oil is exported as the country produces mainly light, sweet crude but has many refineries that handle heavy, sour types.

Before advancements in fracking technology made lighter shale oil readily available, US refineries had been built and optimized for decades to process heavier oil from other countries with high profitability. Despite being able to refine lighter oil, US oil companies can operate with better margins by exporting it to other nations whose refineries are optimized for it and importing heavier oil, for which the US has the infrastructure.

BP’s market cap has never recovered from the dive it took following the 2010 Deep Water Horizon oil spill. This video details some of BP’s corporate missteps along the way.

Coal and gas are second and third, respectively, in terms of where the bulk of the world’s energy consumption stems from. These interactive charts can help you visualize where the world sources the most of its energy.

China is pushing to reduce its reliance on US oil to limit geopolitical vulnerabilities. It’s rapidly becoming the world’s renewable energy superpower.

The US has a Strategic Petroleum Reserve that it taps into, releasing barrels into the economy, during times of emergency (think: major storms and wars) to try to stabilize markets.

The US began exporting more energy than it consumed that year, making it a net energy exporter. Energy imports have decreased every year since 2007, as improved technology has increased the number of accessible domestic oil and natural gas reserves.

The video from the Economist highlights how energy supply disruptions can be weaponized—just as in 1973, today’s gas cutoffs (Russia throttling supplies to Europe after their invasion of Ukraine) reveal the ongoing importance of strategic energy resilience.

Oil passing through the Strait of Hormuz makes up only about 7% of US crude imports. However, crude oil prices account for 51% of the cost of a gallon of gas in the US. US refiners pay the Brent crude futures price, even for domestic drilling.

The US's 42.6% share includes helium imported from Canada and refined within the states. Geopolitical conflicts can cause supply disruptions that impact several advanced technologies, including semiconductor manufacturing, aerospace systems, and medical imaging.

Russia's war in Ukraine spurred calls in the US to increase fracking, which has historically reduced dependence on foreign nations and increased national security. However, some experts argue that renewable energy provides even better energy independence, as fracking investments may not be worthwhile if importing fossil fuels is significantly cheaper.

Brent, West Texas Intermediate, and Dubai are the three crude oil classes and differ in terms of typical refinery uses, density, sulfur content, and suitability for financial benchmarking. Brent, which originates in the North Sea, is traders' go-to benchmark, in part, because it is easily shipped and politically stable, and used to price most of the crude sold internationally.

Between 2000 and 2020, the US government invested tens of billions of dollars to facilitate the extraction of shale oil and gas reserves. These subsidies helped make new projects viable and kept fossil fuel companies afloat while global energy prices and renewable energy startup costs have fallen.

Agriculture is one of the most important industries in the global economy, and while every country produces some of its own food, some countries dominate the markets. The US, Brazil, and the Netherlands are the world's top three agriculture exporters. See more charts and statistics on the topic with this Investopedia article.

About 44% of the global supply comes from the US, as much as the next two biggest producers—Qatar and Russia—combined. According to the US Geological Survey, more than half of this helium is used in scientific and engineering equipment (22%), non-welding-related manufacturing and fabrication (17%), and as a lifting agent (17%).

One side effect of the Russian-Ukraine conflict is how it underscored European dependence on Russian natural gas and oil. This article, published days before the Russian attacks, outlines and illustrated how much gas and oil flows from Russia to Europe and the potential for either side to use sanctions to get what they want.

Due to its large population, the nation's per capita emissions continue to lag behind those of the US, Canada, Russia, Australia, and Saudi Arabia. The Arab country has experienced the most significant increase in per capita greenhouse gas emissions since 1990, now leading the world at 22.8 metric tons of carbon dioxide equivalent per capita.

Estimated at 20.6 billion cubic meters (727.5 billion cubic feet) as of 2022, US helium reserves are more than double those of Qatar, the second nation on the list. Leading the world in natural gas production, from which helium is recovered, the US also leads global helium production, which helps mitigate shortages resulting from overseas geopolitical tensions.

Just beneath the surface of the global economy is a hidden layer of dealmakers for whom war, chaos, and sanctions can be a great business opportunity—they're called commodity traders. Their power partly stems from the fact that commodities are essentially the building blocks of the economy at large.

Standard Oil was eventually ordered to separate into 34 different entities, and over the following years, those 34 companies merged into what is now called the “Big Four” in the oil industry.