OPEC oil export revenues surpass $870 billion, highest in decade

The overall crude export revenues of the Organization of Oil Petroleum Exporting Countries (OPEC) soared to their highest levels in nearly a decade in 2022 amid rising oil prices due to the Russia-Ukraine war and key members of the 23-country alliance raising their production levels of fossil fuel.

After Russian invaded Ukraine in February 2022, oil prices shot up but have since stabilized and remained relatively low this year due to the uncertain economic outlook and a slow post-pandemic recovery from China, leading to less demand. As of Wednesday morning Eastern Time, Brent was nearly at $80 per barrel.

Some 13 countries — including Algeria, Iran, Iraq, Kuwait, the United Arab Emirates and Saudi Arabia — make up OPEC. A further 10 non-OPEC member states, combined with OPEC members, make up OPEC+, which produces around 40% of the world’s crude oil.

In 2022, the 13 OPEC countries saw a 54% surge in revenues to $873.57 billion, from $566.44 billion in 2021. The 2022 revenues were the highest in a decade, with the number peaking in 2012 at $1.2 trillion, according OPEC's Annual Statistical Bulletin.

The report said that global oil demand had increased from 97.97 million barrels per day in 2021 to 99.56 million bpd in 2022. That is equivalent to a year-on-year increase in demand of 2.6%.

Last week, OPEC energy ministers and oil CEOs convened at the group’s headquarters in Vienna, days after powerful members Saudi Arabia and Russia announced a production cut extension and a reduction of crude exports. The price of Brent rose by about $5 this week from last week following those announcements.

OPEC believes that the oil industry will need $12.1 trillion in investment between now and 2045 to meet the oil coalition's forecast of global demand energy demand to increase by 23% in those 22 years.

However, the International Energy Agency forecasts that the demand for fossil fuels will drop after 2026 due to the expansion of electric vehicles, growth of biofuels and improving fuel economy reduce consumption.

Al-Monitor has contacted OPEC and the IEA for comment.