Oil and the Mideast
British discover oil in Persia
- Wm. D'Arcy's Burmah Oil Co. 1901 concession that led to the great 1908 gusher at Masjid-i-Sulaiman and formation of 1909 Anglo-Persian Oil Co.
- Mideast oil important to the British navy in WWI; BP an instrument of imperial policy.
- Seven Sisters (the "majors"): Exxon (was Rockefeller's Standard Oil Co.), Shell, BP (privatized since 1979), Mobil (was Socony), Chevron (was Doheny's Socal), Gulf (was owned by Mellons until sold to Chevron), Texaco.
- Sykes-Picot 1916 and San Remo 1920 kept Mideast oil for Britain.
- Iran became republic in 1925 under Reza Pahlevi, but BP dominated with Anglo-Persian Co. and built the first Mideast pipeline to refinery at Abadan.
- 1925 - The British-controlled Turkish Petroleum Company in Mosul was reorganized as the Iraq Petroleum Company
- 1927 - British discover large oil deposits at Kirkuk in Iraq
ARAMCO in Saudi Arabia
- Abd Al-Aziz ibn Saudcaptured Riyadh Jan. 15, 1902, from the Rashids and Turks and unified S.A. by 1927, collecting fees from pilgrims to Mecca and Medina
- Chevron strike in Bahrain 1931
- 1933 concession = all-American, not Allies
World War II demand for oil
- Harold Ickes was U. S. Oil Coordinator
- FDR: "I hereby find that the defense of Saudi Arabia is vital to the defense of the U.S." (letter to Stettinius Feb. 18, 1943)
- loans, advisors sent to S.A.
- Ickes wants Petroleum Reserves Corp. pipeline across S.A. by 1944
- Connolly stops Anglo-American proposal August 1944 to support S.A. and ARAMCO - policy would be left up to private companies
- private Trans-Arabia pipeline built 1945-50
U.S. helps Shah Pahlevi
- Brit, Russian troops enter Aug. 25, 1941
- Shah Pahlevi abdicated Sep. 17 - replaced by son
- U.S. sent Arthur Millspaugh 1943-5 (had helped Qajars 1922-27)
- Lend-Lease aid to Iran, Russia
- 1943 Tehran Conference - Big 3 pledge cooperation and the independence of Iran
- U.S. companies get oil concession in Iran after the war
Quincy conference Feb, 14, 1945
- Saud., Farouk, Selassie
- oil, zionism, British discussed
- U.S. controls 42% of Mideast oil
- meeting on board USS Quincy
- Peel Plan 1937 - Jewish Agency moves to New York
- Congress votes Dec. 1945 for unrestricted immigration
Arab power rises
- Saud and 6 others create Arab League March 1945
- 1950 Acheson with NSA negotiated 50-50 deal (similar to Venezuela 1948)
- 1960 ARAMCO cuts oil price, Saudia Arabia creates OPEC in Sept.
- rising production of Saudi oil 1938-1967