How does OPEC deal with international oil companies?

Shortly after the establishment of the Organization of Petroleum Exporting Countries, it immediately organized its member countries to participate in the struggle to maintain the stability of oil pricing and increase oil revenue, and began to study oil prices and investment profits of foreign oil companies in order to get a fair pricing formula. In order to safeguard the legitimate income of its member countries, after more than two years of struggle, the Organization of Petroleum Exporting Countries reached an agreement with international oil companies to fund mining tax 1964. International oil companies are forced to agree to pay royalties as an independent project and separately from income tax, but they are required to calculate royalties at a discounted price within a few years. As a result of this struggle, the oil income of Middle East oil-producing countries increased by 405 million dollars in 1964- 1966.

By adopting the quota production system, the Organization of Petroleum Exporting Countries kept the oil price at the level of 1960 in August of the 1960s, and shattered the conspiracy of international oil companies to use excess oil production capacity to put pressure on oil-producing countries in order to split and destroy the Organization of Petroleum Exporting Countries. Since 1968, the Organization of Petroleum Exporting Countries has shifted the focus of the oil price struggle to unify and raise oil prices and regain the right to determine prices. In the mid-1970s, the Organization of Petroleum Exporting Countries raised oil prices twice, which led to two oil crises in the west and dealt a heavy blow to the economies of western industrial countries.

The Organization of Petroleum Exporting Countries (OPEC) has safeguarded the property rights of oil resources in oil-producing countries by establishing state-owned oil companies, striving for equity participation and carrying out the movement of oil nationalization. At present, the member countries of the Organization of Petroleum Exporting Countries have completely or mostly controlled their own oil resources.