Since the mid 19th century, oil has fueled the industrial revolutions and economic developments
of nearly every country on earth. This slowly dwindling resource has also contributed to
some of the worst wars in modern history, and earns its suppliers billions upon billions
of dollars each year. When it comes to international power, control over oil can be just as important
as military or diplomatic strength. But the overwhelming majority of the world’s oil
is held by only a small handful of people. So just who exactly controls the world’s
oil?
Well, in terms of output, the top three oil producing countries are the United States,
Saudi Arabia and Russia. In 2014, the United States produced about 14 million barrels of
oil a day, with the Saudis and Russians trailing right behind. But, while the US is the largest
producer, the Kingdom of Saudi Arabia stands as the world’s largest exporter. Most of
Asia relies on Saudi oil. Meanwhile, Europe relies on Russia, which provided nearly a
third of the continent's oil and natural gas in 2014.
But while these three countries contribute the most oil, they don’t actually control
it. Just twelve countries, primarily in the Middle East, North Africa, and South America,
hold about 80% of the world’s oil. The Organization of the Petroleum Exporting Countries, or OPEC,
is the most powerful oil group on earth, and directly competes with the US, Russia, and
Canada for oil supremacy. OPEC is headed by Saudi Arabia, which alone holds the second
largest oil reserves.
Oil is a useful diplomatic tool, as well as an economic and political weapon. In 1973,
American involvement in Egypt and Syria’s war against Israel led OPEC to instigate an
embargo against the US and its allies. What became known as the ’73 Oil Crisis had devastating
consequences for the global economy. Petroleum prices skyrocketed, leading to gas shortages
across America and Europe.
Additionally, numerous wars since the 1930s have been described as “oil wars”, with
countries initiating conflicts with oil rich nations in order to take control of the resource.
In particular, the 2003 illegal invasion of Iraq, led by the Bush Administration, has
been considered to be a prime example of this type of conflict. Multiple military leaders,
and even the Former Secretary of Defense, Chuck Hagel, have since revealed that oil
control was a dominating factor in the decision to invade. In fact, a study found that countries
with aggressive leaders and large oil reserves are two and half times more likely to see
military conflict.
Oil has made its producers a whole lot of money, while threatening to destabilize the
rest of the world. Although OPEC does seek balance among its members, it is also inherently
opposed to US oil, leading to further conflict and power struggles. One can only hope that
renewable energy eventually takes this volatile resource off the bargaining table entirely.
While many countries and entities are competing to have the most oil, as we mentioned the
resource is slowly dwindling. How much oil do we actually have left? Find out in this
video.
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