In 2022, Nigeria and other member countries of the Organization of Petroleum Exporting Countries (OPEC) generated $873.6 billion from oil exports. This represents a significant increase of 54 percent compared to the previous year. The surge in earnings occurred due to a rise in petroleum export revenues among the 13 member nations, reaching the highest level in nearly ten years. This was largely influenced by Russia’s conflict with Ukraine, which led to higher crude prices, and simultaneous production increases by key OPEC members.
The price of crude oil experienced a notable surge last year, primarily driven by disruptions in energy supplies from Russia, a country that became part of the OPEC+ network after joining forces with the cartel in 2016. These disruptions were a consequence of international backlash against Russia’s military intervention in Ukraine. The average price of Brent futures, reaching approximately $99 per barrel, marked the highest level since 2014.
OPEC member nations typically sell a basket of crude oil grades, which had an average price slightly above $100 per barrel in 2022. Estimates from Bloomberg indicate that the combined crude production of the 13 OPEC states amounted to around 29.2 million barrels per day. It’s worth noting that the figures for petroleum revenue also encompass the sales of refined products.
OPEC’s highest earnings to date were approximately $1.2 trillion in 2012 when the advent of hydraulic fracturing, commonly known as fracking, unlocked significant shale-oil reserves across American states such as Texas and North Dakota. However, the ensuing market crash prompted Saudi Arabia and Russia, once staunch competitors, to form the OPEC+ coalition in 2016.