Come on now. It's every bit as bad as it sounds. The nation is being exploited. People should not have to buy stock in a company that extracts a nations natural resources to benefit from it.
Oil is a precious, extremely valuable natural resource. As are many other commodities pulled out of the ground. The nation as a whole should be getting 80%-90% of the profits of the oil and other natural resources that come out of our ground and seabed. Whether you prefer to do it by nationalizing the industry or using the tax code, I don't care.
Again, I point you to the richest nations in the world. Regardless of their form of government, how they treat their people, or any other variable, regardless of whether they use the money for good, evil, or squander it. Regardless of whether they nationalize the industry, or just tax the fuck out of it, they all have one thing in common. Those nations are the primary financial beneficiaries of their natural resources. Not other entities.