Corruption, political meddling, and even criminal activity—sometimes referred to as “mafia-style” operations—have long been linked to the oil industry.
Although this does not imply that there is a single global “oil mafia,” corrupt practices involving strong cartels, state actors, and organized crime are prevalent in different regions. However, there are a few noteworthy instances.
Oil Theft and Smuggling: Crude oil theft is a serious issue in Nigeria, where criminal oil bunkering is carried out by corrupt officials, militant organizations, and even foreign players. Mexico has lost billions of dollars as a result of cartels like the Zetas stealing oil from state-owned Pemex pipelines. Particularly in the post-Soviet period, Russia has also been accused of having mafia-like organizations in control of some oil exports.
Political Manipulation and Cartels: The Organization of the Petroleum Exporting Countries, or OPEC, has frequently come under fire for operating like a cartel and influencing oil production and prices for both political and financial advantage. Oil profits support the ruling classes in some Middle Eastern nations, which occasionally stifles dissent or exacerbates hostilities.
Corruption and Shady Deals: The Petrobras scandal in Brazil exposed widespread corruption involving government officials and major oil firms. Western oil companies have been accused of bribing officials in resource-rich countries to secure contracts.
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Resource Wars and Assassinations: Control over oil has fueled wars (Iraq, Libya, Syria) and led to assassinations of activists and journalists exposing corruption. In Russia, businessmen and executives linked to the oil industry have mysteriously died under suspicious circumstances.
Although the word “mafia” may be overly harsh, there is no denying that the oil industry is characterized by pervasive corruption, the influence of organized crime, and geopolitical scheming.
Power players in the industry frequently use tactics similar to organized crime, whether through smuggling, political control, or violent means.
