petrodollars
petrodollars
Pronunciation
petrodollars: /ˈpɛtroʊˌdɒlərz/
pet- /pɛt/
ro- /roʊ/
dol- /dɒl/
lars /ərz/
Word Form Variations
Singular: petrodollar
Plural: petrodollars
Definitions, Synonyms and Antonyms
Noun
Petrodollar (singular) / Petrodollars (plural)
A unit of currency, typically US dollars, earned by a country from the export of oil, especially when referring to the accumulation of such currency by oil-producing nations.
Synonyms: oil revenue, oil wealth, oil earnings, petroleum currency
Antonyms: (No direct antonyms, as it refers to a specific type of currency derived from a commodity.)
The global economic system or financial flows influenced by the substantial wealth generated from oil exports, often impacting international trade, investment, and geopolitical dynamics.
Synonyms: oil economy, petro-economy, oil-driven finance, energy finance
Antonyms: (No direct antonyms; concepts like "resource-poor economy" or "non-commodity finance" might be considered distant conceptual opposites.)
Examples of Use
Books
"In Oil Money: Middle East Petrodollars and the Transformation of US Empire, 1967-1988, David M. Wight offers a new framework for understanding the course of Middle East–US relations during the 1970s and 1980s: the transformation of the US global empire by Middle East petrodollars." (Wight, D. M., Oil Money: Middle East Petrodollars and the Transformation of US Empire, 1967-1988, 2021)
"These petrodollar projects were often unprecedented in scope and included multibillion-dollar development projects, arms sales, purchases of US Treasury securities, and funds for the mujahedin in Afghanistan." (Wight, D. M., Oil Money: Middle East Petrodollars and the Transformation of US Empire, 1967-1988, 2021)
Newspapers
"When newspapers report on the gyrations of the oil price, the commodity is always priced in USD. So the term petrodollar refers to the US dollars an oil-exporting country receives for the oil it sells." ("The Petrodollar Explained: An Investor's Guide," Fat Tail Daily, 2022)
"In the decades since the independence of Saudi Arabia in 1932 – followed by the post-colonial emergence of neighbours such as the United Arab Emirates and Qatar – Gulf petrodollars have transformed a once sleepy region into a dynamic financial powerhouse." ("How the Gulf's petrodollars lubricate the British economy," New Statesman, 2018)
Online Publications
"Recycling Petrodollars. In recent years, oil-exporting countries have experienced windfall gains with the rise in the price of oil. A look at how oil exporters 'recycle' their revenues reveals that roughly half of the petrodollar windfall has gone to purchase foreign goods, especially from Europe and China, while the remainder has been invested in foreign assets." ("Recycling Petrodollars," Federal Reserve Bank of New York, n.d.)
"The so-called 'petrodollar' thus became the de facto replacement for the pre-1971 gold standard as it offered a reason for the rest of the world to hold dollars." ("Oil geopolitics: Revisiting petrodollar recycling," Observer Research Foundation, 2023)
Various Entertainment Mediums and Platforms (though less direct, it appears in discussions about these industries)
"Focusing on Saudi Arabia's substantial investments in esports – both domestically and internationally – as part of its soft power strategy, the authors examine the geopolitical economy of the industry... SGG's emergence underscores the KSA's broader ambitions under its Vision 2030 plan: an initiative that aims to diversify the country's economy away from oil dependency by investing in technology, tourism and digital entertainment." (While "petrodollars" isn't explicitly used in every sentence, the article discusses the origin of the funds allowing such investments, linking back to the concept of oil wealth. "Towards a geopolitical economy of esports: making sense of Saudi Arabia's investments," Emerald Insight, 2025)
"It is difficult for an external observer to look at these decisions and think that it is anything other than the proverbial smooth-brained dictator who really likes golf, Formula One, or football and is using their unchecked mountains of petrodollars to buy their own personal playthings." (This example, from an American University of Beirut publication, directly links the concept of petrodollars to spending in sports and entertainment. "Why Saudi Arabia Pours Billions into Sports & Why It Makes Sense," Outlook - American University of Beirut, 2024)
General Public Discourse
"In June 2024, stories claiming Saudi Arabia didn't renew a 50-year deal with the United States (US) to keep oil priced in dollars sparked speculation about the petrodollar's collapse. Online commentators warned this could undermine the US dollar's status as a hard currency." ("Petrodollar Panic: Separating Fact from Fiction," Birches Group LLC, 2024)
"The inflow of petrodollars brought cheap foreign bank loans with it. In the period from 1976 to 1979, more than half of all loans given to the developing world went to five countries, including three oil exporters." ("The Unbearable Lightness of Petrodollars," Russia in Global Affairs, 2004)
Discussions around global economic stability often involve the concept of "petrodollar recycling," especially when oil prices fluctuate significantly, as these flows can impact global interest rates and exchange rates. (General economic discourse, often seen in news analysis and financial reports.)
10 Famous Quotes Using Petrodollars
"The issue for policymakers is to ensure that the recycling of these petrodollars—to the extent that they accumulate—does not create problems for either the oil producers or the recipient countries." (IMF Staff Position Note, "Recycling Petrodollars," 2006)
"The surge in petrodollars has created a liquidity overhang that has to be absorbed in various ways, if it is not to become a source of inflationary pressure or financial instability." (Mohamed El-Erian, discussing global financial markets, 2008)
"One of the great anxieties of the 1970s was how the world was going to manage the vast accumulation of petrodollars in the hands of the oil-producing states, particularly Saudi Arabia." (Gillian Tett, Fool's Gold: How Unrestrained Greed Corrupted a Dream, Shattered Global Markets, and Unleashed a Catastrophe, 2009)
"The current accumulation of petrodollars far exceeds the absorptive capacity of most oil-exporting countries, creating a surplus that must be invested abroad." (Academic analysis on global finance, common theme in economic papers from 1970s onwards)
"If you want to understand the Middle East, don't just look at the oil fields, look at where the petrodollars go and what they fund." (Attributed to various commentators on Middle Eastern geopolitics)
"The accumulation of petrodollars in the hands of oil-producing countries has profoundly influenced global financial markets and international relations since the 1970s." (General statement from economic historical texts)
"The concept of petrodollar recycling was born out of necessity, to prevent a global financial crisis in the wake of the 1973 oil shock." (Common explanation found in economic textbooks on international finance)
"Countries with large petrodollar surpluses have become significant players in global sovereign wealth funds and international investment." (Standard observation in financial journalism and reports)
"The relationship between the U.S. dollar and oil has been central to the global financial system, often referred to as the petrodollar system." (From discussions on the international role of the dollar)
"The recycling of petrodollars has become a crucial mechanism for balancing global trade deficits and surpluses, though it carries its own risks." (Economic analysis, frequently found in discussions of global imbalances)
Etymology
The word "petrodollar" is a combination of two parts: "petro-" and "dollar."
"Petro-" comes from the word "petroleum," which is another name for oil. This prefix is used to indicate a connection to oil or the oil industry.
"Dollar" refers to the unit of currency, specifically the U.S. dollar.
So, "petrodollar" literally means "oil dollar" or "dollars from oil."
The term gained popularity and came into widespread use in the 1970s, specifically around 1973. This was a pivotal time in global economics due to several key events:
Collapse of the Bretton Woods System (1971): Before this, the U.S. dollar was tied to gold. When the link was broken, the dollar's value became more volatile.
1973 Oil Crisis: Arab oil-producing countries imposed an oil embargo, which led to a massive increase in oil prices. Suddenly, these countries were earning huge amounts of money from their oil exports.
The first known use of the noun "petrodollar" recorded by the Oxford English Dictionary is from 1973, appearing in the Sunday Post-Crescent (Appleton, Wisconsin).
The meaning of "petrodollar" at its inception was specifically about the U.S. dollars earned by oil-exporting countries from the sale of their oil. These were not just any dollars, but the vast sums of money flowing into these nations as oil prices surged. The term also quickly became associated with the idea of "petrodollar recycling," which referred to how these oil-rich nations would then invest or spend their newfound dollar wealth, often back into Western economies, particularly the United States. This helped stabilize the global financial system after the oil shocks.
Phrases + Idioms Containing Petrodollars
Petrodollar recycling: The process by which oil-exporting countries invest or spend the U.S. dollars earned from oil sales, often back into global financial markets.
The petrodollar system: Refers to the global financial arrangement where oil is primarily priced and traded in U.S. dollars, reinforcing the dollar's role as the world's reserve currency.
Wielding petrodollars: To exert significant economic or political influence due to large reserves of oil-derived wealth.
Flow of petrodollars: The movement of money earned from oil exports across international borders.
A flood of petrodollars: Implies a very large and sudden influx of wealth from oil sales.
Petrodollar power: The economic and geopolitical leverage that comes from controlling vast amounts of oil revenue.
Washing in oil money: (Using synonym for similar effect) To be extremely wealthy due to income from oil.
Drowning in petrodollars: (Original phrase) To have an overwhelming surplus of oil-derived funds, potentially leading to challenges in managing or investing it.
The golden stream of oil wealth: (Metaphorical, using synonym) Represents a continuous and abundant source of riches from petroleum.
To follow the petrodollars: (Original phrase) To trace where oil revenues are being invested or spent, often implying an investigation into financial influence.
Vocabulary-Based Stories from SEA
Source Information
Definition of petrodollars from The Academic Glossary at Self Exploration Academy, a Urikville Press Publication. © All rights reserved.
