Who is Really Dependent on Oil?

I was reading a hard copy of a Russian magazine Vlast (means Power) published by Kommersant and came across some ‘fun facts’ about a few oil companies that are hard to ignore.

Did you know that:

• Saudi Aramco contributes 80% of the budget and constitutes 40% of the country’s GDP.
• National Iranian Oil Company contributes 40-50% of the budget and 80-90% of export profits.
• Petroleos Mexicanos covers about 30% of government spending and its privatization is prohibited in the constitution.
• Petroleos de Venezuela S.A. constitutes about 30% of the GDP, contributes 50% of the budget, and 80% of export profits.  Its privatization is also prohibited in the constitution.
• Kuwait Petroleum Corporation covers 90% of the country’s export profits and constitutes 40% of the GDP.
• Nigerian National Petroleum Corporation — 95% of government revenues and 40% of the GDP.
• Abu Dhabi National Oil Company constitutes 30% of the country’s GDP.
• National Oil Corporation — 90% of export revenues and 25% of the GDP.
• Sonatrach — 97% (!!!) of export revenues, 95%(!!!) of government revenues, and 30% of the GDP.
• Sociedade Nacional de Combustiveis de Angola —  90% of government revenues and 40% of the GDP.

I could keep going, but I hope that by now you see the trend.  You often hear that the U.S. economy is really dependent on foreign oil.  But look at these numbers — whose economy is really dependent on oil?  And whose economy is driven by small and medium-sized companies, technological advancements, and entrepreneurship?

It just amazing how some governments are so dependent on the existence of one company (in the natural resource sector of the economy).  So much for economic diversification.  So much for long term economic growth.  So much for job and wealth creation outside of the public sector.

I just hope that all those governments begin to take the necessary steps to develop an economic base that is not dependent on a single resource, the demand for which will not remain as high as it is today.  Just thinking about it, there is so much work to be done.  High oil revenues may allow governments to give people a hand out, subsidize prices, or provide free healthcare and education.  But what will happen 50 years from now if economic structures remain as they are today? 100 years from now?