This article was adapted from a lecture given by ISRF Fellow Adam Hanieh at the launch of his book Crude Capitalism.

Oil isn’t just a fuel – we are literally surrounded by it

If you look around the room you're in, everything surrounding us is a product of oil.

The clothes we wear, the paint on the walls, the seats, and our laptops. All of these are made from synthetic materials that derive from fossil fuels. It's something that we don't really think about. We have become naturalised to this environment and just assume this is the way the world is.

But this wasn’t always the case. After World War II, the manufacturing industry went through a synthetic revolution. We began creating products with petrochemicals made from crude oil instead of using natural raw materials, such as wood and glass.

Within decades, oil companies became not simply fuel providers but the invisible force behind the creation of a material world that is entirely dependent on petrochemicals and plastic. In doing so, the big fossil fuel companies cemented their power and created a system where crude oil products fuelled economic growth across all industrial sectors.

Interestingly, the oil industry itself sees petrochemicals as the largest demand sector for oil over the next three decades. They speak very openly about how this is the future of oil.

When we talk about the problem of plastic waste in our seas, our bodies and landfills, the focus should be on the oil and fossil fuel industry, not on how to improve recycling. Breaking with our fossil fuel-centred world will not happen unless we think about different ways to produce materials, and move away from the model where petrochemicals are central to modern capitalism.

Oil companies are now states – with a seat at the top table

In the 20th century, the phrase ‘Big Oil’ referred to seven Western oil companies that controlled most of the industry.

Today, the global oil industry has undergone a significant geographical shift, with national oil companies (NOCs) located in the Middle East, China, and East Asia playing an increasingly dominant role.

Oil giants like Saudi Aramco, the world's largest oil company, have emerged. Aramco's profits surpass those of the five largest Western oil companies combined.

These NOCs have diversified beyond crude oil production and now control refining, shipping, and petrochemical operations. These integrated behemoths can extract oil from the ground and transform it into products that are shipped to our supermarket shelves.

We have also seen the rise of China as the world’s dominant manufacturer.

In 2000, China consumed about 4% of the world's oil. In 2025, one-fifth of the world's imports go to China.

Consequently, exports of Middle Eastern oil and their refined by-products have pivoted eastward, away from traditional markets like Europe and the US.

This has profound implications. It embeds oil in our everyday lives through the global trade of refined products and plastics. Furthermore, it grants countries with national oil companies significant influence over climate policy.

For example, in 2023, COP 28 in Dubai was chaired by the President of the Abu Dhabi National Oil Company (Adnoc).

What we see here is NOCs having a seat at the table and direct influence on the process of climate policy-making. It's different from the role played by oil companies such as ExxonMobil and Chevron, who, despite their massive lobbying powers and influence, do not have the same control when policies are being developed.

The green transition is a myth

I think we need to confront the idea that the green transition is, in many ways, a myth. There is no green transition taking place.

Historically, the transition to different forms of energy has not involved the replacement of one source with another but with the addition of more energy.

In 2023, we produced the largest volume of coal in history. The same with oil. The same with gas.

While solar and wind power have increased our overall energy supply capacity, the absolute production of fossil fuels has increased.

When the oil industry promotes technological solutions, such as electric vehicles and hydrogen, to facilitate the green transition, it’s clear these solutions are inadequate and not a genuine answer to the problem.

Oil drives geopolitics

The U.S. has been unwavering in its support for Israel during the ongoing conflict in Gaza, demonstrating the Middle East’s geopolitical significance for the global superpower. This fact shapes decisions by the U.S. to supply financial aid, military supplies, and political backing to Israel.

This has been true since the end of World War II.

While the recent events in Gaza unfolded after the completion of my book, it's crucial to recognise the historical and geopolitical context in which they occurred.

Crude Capitalism: Oil, Corporate Power, and the Making of the World Market by Adam Hanieh is published by Verso Books