The Oil Industry often makes global headlines—and one name keeps coming up: OPEC. But what exactly is OPEC? The Organization of the Petroleum Exporting Countries is a powerful coalition of oil-producing nations that band together to control production, stabilize the market, and maximize profits. Formed in 1960 by Saudi Arabia, Iran, Iraq, Kuwait, and Venezuela, the group has grown to include members such as the UAE, Libya, Algeria, and Nigeria, among others.

Over the years, OPEC has flexed considerable power within the Oil Industry. Claiming to control nearly 80% of the world’s proven petroleum reserves and producing roughly 40% of the world's oil, OPEC doesn’t just participate in the market—they influence it. Their strategic moves have historically shifted prices dramatically, such as the 200% spike in 1973. This influence has led many to label them the “Don” of the oil world, echoing the dominance of a mafia boss in their sphere.

Oil Industry Control and Market Reactions

As oil-importing nations diversified their energy sources in the late 20th century, OPEC responded by limiting production to maintain price levels. Even during periods of global financial downturn, like the 2008 recession, OPEC has played a stabilizing role in the Oil Industry by implementing production quotas and negotiating with non-member nations like Russia and Mexico.

Fast forward to 2025: OPEC continues to adapt. Amid fluctuating oil prices, they reduced production to 27.43 million barrels per day in March, only to boost output again by 411,000 barrels daily in May. This flexibility is why many argue OPEC will always maintain a dominant role in shaping the global Oil Industry.

Power Play: The Modern “Don”

Unlike criminal empires that operate in secrecy, OPEC’s strategies are public—affecting everything from gas prices to global trade policies. While U.S. government efforts once aimed to break up mafia families, OPEC faces no such threat. With no rivals that can match its coordination and resources, OPEC remains an undisputed force.

Although recent events—like Trump-era global tariffs—caused oil prices to dip from $72 to $62 per barrel, OPEC is far from concerned. Their influence ensures they stay on top, no matter the challenge.

So, is OPEC the Don of the Oil Industry? It may not wear a fedora, but when it speaks, markets listen.

Curious what OPEC’s next move means for your bottom line? We’re here to break it down and help you get the most out of your royalty income. Reach out to us now—let’s talk strategy.