OPEC Chases Its Market Share
Production statistics
In 2014, OPEC (Organization of the Petroleum Exporting Countries) accounted for ~41% of the world’s total crude oil production. OPEC’s members produced around 36.6 MMbpd (million barrels per day). Saudi Arabia produced 11.5 MMbpd in 2014. Saudi Arabia accounts for 31% of OPEC’s total production. It accounted for 13% of the world’s total crude oil production in 2014. As a leading crude oil producer, Saudi Arabia dominates other members in the cartel. As of 2014, the other leading crude oil producers in the cartel were Iran, Iraq, and Kuwait.
OPEC as a net exporter of crude oil
OPEC’s countries are net exporters of crude oil. It’s an important part of their annual GDP (gross domestic product). In 2014, the US produced 11.6 MMbpd. It consumed 19.0 MMbpd. As a result, it became a net importer of crude oil. The above chart shows the revenue for OPEC members—excluding Iran.
US-based (SPY) energy companies like ConocoPhillips (COP), ExxonMobil (XOM), Chevron (CVX), and Pioneer Natural Resources (PXD) draw a significant portion of their revenue from the US. The US accounted for 12.3% of the world’s total crude oil production in 2014. Asia, North America, and Europe—except for Russia—are the important markets for oil producers. Most of these countries are net importers of crude oil. OPEC has a significant influence in reducing and increasing crude oil prices.
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