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Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
Exploitation of Oil Exploitation of Oil A History of EntrepreneursA History of Entrepreneurs
Who Made it HappenWho Made it Happen
Christopher G. St.C. KendallChristopher G. St.C. Kendall
--What does it all mean to What does it all mean to
us all?us all?
Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
Texts on History of Petroleum Texts on History of Petroleum ExploitationExploitation
3 books set Middle East petroleum scene:3 books set Middle East petroleum scene:"The Prize : The Epic Quest for Oil, Money & Power" "The Prize : The Epic Quest for Oil, Money & Power" by Daniel Yergin by Daniel Yergin Records history of petroleum Industry in USA, Records history of petroleum Industry in USA, Baku,Baku, && Middle East. Middle East. "Sowing the Wind: The Seeds of Conflict in the "Sowing the Wind: The Seeds of Conflict in the Middle" by John Keay. Chronicles activities of British Middle" by John Keay. Chronicles activities of British & their allies... & their allies... "A Peace to End All Peace: The Fall of the Ottoman "A Peace to End All Peace: The Fall of the Ottoman Empire and Creation of the Modern Middle East" by Empire and Creation of the Modern Middle East" by David Fromkin. Records why British decided to move David Fromkin. Records why British decided to move on Ottoman Empire and results..... on Ottoman Empire and results.....
These are well written, easy to read informative These are well written, easy to read informative histories!histories!
3 books set Middle East petroleum scene:3 books set Middle East petroleum scene:"The Prize : The Epic Quest for Oil, Money & Power" "The Prize : The Epic Quest for Oil, Money & Power" by Daniel Yergin by Daniel Yergin Records history of petroleum Industry in USA, Records history of petroleum Industry in USA, Baku,Baku, && Middle East. Middle East. "Sowing the Wind: The Seeds of Conflict in the "Sowing the Wind: The Seeds of Conflict in the Middle" by John Keay. Chronicles activities of British Middle" by John Keay. Chronicles activities of British & their allies... & their allies... "A Peace to End All Peace: The Fall of the Ottoman "A Peace to End All Peace: The Fall of the Ottoman Empire and Creation of the Modern Middle East" by Empire and Creation of the Modern Middle East" by David Fromkin. Records why British decided to move David Fromkin. Records why British decided to move on Ottoman Empire and results..... on Ottoman Empire and results.....
These are well written, easy to read informative These are well written, easy to read informative histories!histories!
Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
Current Middle East Current Middle East ReservesReserves
•Saudi Arabia 263.5 bbls 204.5 Tcf – 8 Years– 8 Years•Iraq 112 bbls 109 Tcf•UAE 97.8bbls 212 Tcf•Kuwait 96.5 bbls 52.7Tcf •Iran 89.7 bbls 812.3Tcf•Oman 5.3 bbls 28.4 Tcf•Yemen 4.0 bbls 16.9 Tcf•Qatar 3.7 bbls 300.0 Tcf•Syria 2.5 bbls 8.5 Tcf•Bahrain 0.1 bbls 3.9 Tcf•TOTALTOTAL 675.1 bbls675.1 bbls 1,748.2 Tcf1,748.2 Tcf
Crude Oil(BB) - Natural Gas (TCF)
Most of these countries fields are Most of these countries fields are in carbonatesin carbonatesMost of these countries fields are Most of these countries fields are in carbonatesin carbonates
Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
Non-OPEC countries produced 60% of Non-OPEC countries produced 60% of world's oil in 2005 with a steady increase world's oil in 2005 with a steady increase since 1993 since 1993 Currently only 4 (Saudi Arabia, Iran, UAE, & Currently only 4 (Saudi Arabia, Iran, UAE, & Venezuela) of top 10 oil producers were Venezuela) of top 10 oil producers were OPECOPECMost prolific producers are Most prolific producers are Saudi Arabia 11, Saudi Arabia 11, Russia 9, USA 8, Iran 4, Mexico 4, China 4, Russia 9, USA 8, Iran 4, Mexico 4, China 4, Canada 3, Norway 3, UAE 3, Venezuela 3, Canada 3, Norway 3, UAE 3, Venezuela 3, Kuwait 3, Nigeria 3, Algeria 2, Brazil 2Kuwait 3, Nigeria 3, Algeria 2, Brazil 2Non-OPEC countries have most of world's Non-OPEC countries have most of world's capacity for refining crude oil into gasoline & capacity for refining crude oil into gasoline & heating oilheating oil
Non-OPEC countries produced 60% of Non-OPEC countries produced 60% of world's oil in 2005 with a steady increase world's oil in 2005 with a steady increase since 1993 since 1993 Currently only 4 (Saudi Arabia, Iran, UAE, & Currently only 4 (Saudi Arabia, Iran, UAE, & Venezuela) of top 10 oil producers were Venezuela) of top 10 oil producers were OPECOPECMost prolific producers are Most prolific producers are Saudi Arabia 11, Saudi Arabia 11, Russia 9, USA 8, Iran 4, Mexico 4, China 4, Russia 9, USA 8, Iran 4, Mexico 4, China 4, Canada 3, Norway 3, UAE 3, Venezuela 3, Canada 3, Norway 3, UAE 3, Venezuela 3, Kuwait 3, Nigeria 3, Algeria 2, Brazil 2Kuwait 3, Nigeria 3, Algeria 2, Brazil 2Non-OPEC countries have most of world's Non-OPEC countries have most of world's capacity for refining crude oil into gasoline & capacity for refining crude oil into gasoline & heating oilheating oil
World Petroleum ExploitationWorld Petroleum Exploitation
Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
Iraq's Role?
U.S. War Against Terrorism in a deadly U.S. War Against Terrorism in a deadly phase spreading across Middle East phase spreading across Middle East Middle East a geopolitical cauldron - Middle East a geopolitical cauldron - Caspian States on eastern flank & Caspian States on eastern flank & Mediterranean on western flank; bridge Mediterranean on western flank; bridge between Europe, Africa & Asiabetween Europe, Africa & AsiaImportant current battlefields within region Important current battlefields within region include Iraq & Iran, West Bank, Somalia, include Iraq & Iran, West Bank, Somalia, Sudan & AfghanistanSudan & Afghanistan
U.S. War Against Terrorism in a deadly U.S. War Against Terrorism in a deadly phase spreading across Middle East phase spreading across Middle East Middle East a geopolitical cauldron - Middle East a geopolitical cauldron - Caspian States on eastern flank & Caspian States on eastern flank & Mediterranean on western flank; bridge Mediterranean on western flank; bridge between Europe, Africa & Asiabetween Europe, Africa & AsiaImportant current battlefields within region Important current battlefields within region include Iraq & Iran, West Bank, Somalia, include Iraq & Iran, West Bank, Somalia, Sudan & AfghanistanSudan & Afghanistan
Thomas Homer-Dixon’s ConflictThomas Homer-Dixon’s Conflict ModelModelEnvironmental Scarcity ---> Social Effects ---> Violent ConflictEnvironmental Scarcity ---> Social Effects ---> Violent Conflict
Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
As of January 2004, As of January 2004, OPEC countriesOPEC countries hold 77% of world's proven oil reserves77% of world's proven oil reservesMost major non-OPEC oil producers are Most major non-OPEC oil producers are very large consumers, & low exportersvery large consumers, & low exportersWorld 84 - USA consumesWorld 84 - USA consumes 20.73, imports 20.73, imports 13.15 & exports 1.048 million bbl/day13.15 & exports 1.048 million bbl/dayPersian Gulf OPEC has the world's lowest Persian Gulf OPEC has the world's lowest oil finding & lifting costsoil finding & lifting costsNon OPEC oil liable to price collapse e.g. Non OPEC oil liable to price collapse e.g. Russia etcRussia etcConsumption grows 3% annually Consumption grows 3% annually
As of January 2004, As of January 2004, OPEC countriesOPEC countries hold 77% of world's proven oil reserves77% of world's proven oil reservesMost major non-OPEC oil producers are Most major non-OPEC oil producers are very large consumers, & low exportersvery large consumers, & low exportersWorld 84 - USA consumesWorld 84 - USA consumes 20.73, imports 20.73, imports 13.15 & exports 1.048 million bbl/day13.15 & exports 1.048 million bbl/dayPersian Gulf OPEC has the world's lowest Persian Gulf OPEC has the world's lowest oil finding & lifting costsoil finding & lifting costsNon OPEC oil liable to price collapse e.g. Non OPEC oil liable to price collapse e.g. Russia etcRussia etcConsumption grows 3% annually Consumption grows 3% annually
World Petroleum ExploitationWorld Petroleum Exploitation World Petroleum ExploitationWorld Petroleum Exploitation
Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
Commodity ScarcityCommodity Scarcity• Exploration potentialExploration potential
• Gulf coast & West Texas Gulf coast & West Texas for small for small USUS companies companies
• Oil shales of Western USA & Athabaska Oil shales of Western USA & Athabaska tar sandstar sands
• Employment in exploration & builders of Employment in exploration & builders of exploitation models of current oil fields in exploitation models of current oil fields in Secondary & Tertiary recovery mode!Secondary & Tertiary recovery mode!
• At least 1% of you in this room should be At least 1% of you in this room should be millionaires before you retire!millionaires before you retire!
• Exploration potentialExploration potential• Gulf coast & West Texas Gulf coast & West Texas for small for small USUS
companies companies • Oil shales of Western USA & Athabaska Oil shales of Western USA & Athabaska
tar sandstar sands• Employment in exploration & builders of Employment in exploration & builders of
exploitation models of current oil fields in exploitation models of current oil fields in Secondary & Tertiary recovery mode!Secondary & Tertiary recovery mode!
• At least 1% of you in this room should be At least 1% of you in this room should be millionaires before you retire!millionaires before you retire!
Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
1850 - 1910:1850 - 1910: Kerosene Kerosene the fuel of choicethe fuel of choice
1869:1869: Suez Canal opens Suez Canal opens
1878:1878: Electric Light Electric Light
1908:1908: Auto Boom starts Auto Boom starts
1912:1912: UK Navy uses Oil UK Navy uses Oil
1914 – 1918:1914 – 1918: WWI WWI1920:1920: 9 million vehicles 9 million vehicles U.SU.S
1938 – 1945:1938 – 1945: WWII WWII
1948:1948: Israel born Israel born
1948:1948: 1 1stst Arab Israeli War Arab Israeli War
1948:1948: US Net Oil Importer US Net Oil Importer
1952:1952: Iran Oil Nationalized Iran Oil Nationalized
1956:1956: Suez Nationalized Suez Nationalized
1956:1956: 2 2ndnd Arab - Israeli War Arab - Israeli War
1960:1960: OPEC founded OPEC founded
1967:1967: 3 3rdrd Arab - Israeli War Arab - Israeli War
1969:1969: Qaddafi coup Qaddafi coup
1978:1978: Khomeini coup Khomeini coup
1980:1980: Iraq – Iran War Iraq – Iran War
1990-91:1990-91: 1 1stst US - Iraq War US - Iraq War
2003 - :2003 - : 2 2ndnd US - Iraq War US - Iraq War
Oil Time Line – Important Oil Time Line – Important Events Events
Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
How:How: Seeps (Oil Springs), & Wells - Hand Seeps (Oil Springs), & Wells - Hand Dug & Drilled (Percussion & Rotary)Dug & Drilled (Percussion & Rotary)Where:Where: Asia, Middle East, Europe & Asia, Middle East, Europe & AmericaAmericaUse:Use: Heat, Paving, Light, Kerosene, Heat, Paving, Light, Kerosene, Transport (Ships and Automobiles)Transport (Ships and Automobiles)Entrepreneurs:Entrepreneurs: John Rockefeller, Nobels, John Rockefeller, Nobels, Rothschilds, Marcus Samuel, William Rothschilds, Marcus Samuel, William D’Arcy, Henri Deterding, Calouste Sarkis D’Arcy, Henri Deterding, Calouste Sarkis GulbenkianGulbenkianMovers:Movers: Stalin, Ford, Fisher, Churchill, Stalin, Ford, Fisher, Churchill, Ibn Saud, Mossadegh, Shah Reza Ibn Saud, Mossadegh, Shah Reza Pahlavi, Nasser, Khomeini, Mohammar Pahlavi, Nasser, Khomeini, Mohammar Qaddafi, Saddam HusseinQaddafi, Saddam Hussein
History of Petroleum ExploitationHistory of Petroleum Exploitation
Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
The PlayersThe PlayersJohn RockefellerJohn Rockefeller
RothschildRothschild
Nobles Robert, Ludwig, & Alfred Nobles Robert, Ludwig, & Alfred
Marcus SamuelMarcus Samuel
William D’ArcyWilliam D’Arcy
Henri DeterdingHenri Deterding
Calouste GulbenkianCalouste Gulbenkian
StandardStandardOilOil
Baku OilBaku OilNobel Brothers OilNobel Brothers Oil
ShellShellTransportationTransportation
PersianPersianOilOil
RoyalRoyalDutchDutchShellShell
5% Arabian5% ArabianOilOil
Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
Movers &Movers & Shakers ShakersHenry FordHenry Ford
Jackie FisherJackie Fisher
Winston ChurchillWinston Churchill
Ibn SaudIbn Saud
Dr. Mohammad MossadeghDr. Mohammad Mossadegh
Shah Reza PahlaviShah Reza Pahlavi
Gamal Abdel NasserGamal Abdel Nasser
Ayatollah Ruhollah Khomeini Ayatollah Ruhollah Khomeini
Mohammar QaddafiMohammar Qaddafi
Saddam HusseinSaddam Hussein
Admiral Admiral FisherFisher
WinstonWinstonChurchillChurchill
Ibn SaudIbn SaudMossadeghMossadegh
Gamal AbdelGamal AbdelNasserNasser
KhomeiniKhomeini
QaddafiQaddafi
ShahShah
Henry FordHenry Ford
Saddam Saddam HusseinHussein
Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
Appalachians: Appalachians: Key Elements Key Elements Rail Boom of US (1830-1860)Rail Boom of US (1830-1860)Refining of Oil for Kerosene (1850)Refining of Oil for Kerosene (1850)Oil Boom after Drake’s well (1859)Oil Boom after Drake’s well (1859)Standard Oil Incorporated (1870)Standard Oil Incorporated (1870)Light bulb of Thomas Edison (1878) Light bulb of Thomas Edison (1878)
Baku:Baku: Key Elements Key ElementsRail Boom of Russia (1830-1917)Rail Boom of Russia (1830-1917)Refining of Oil for Kerosene (1830)Refining of Oil for Kerosene (1830)Oil Boom with Nobel Brothers Incorporation (Oil Boom with Nobel Brothers Incorporation (1875)1875)Tanker "Zoroaster" (1877) & Pipeline (1897-1907) Tanker "Zoroaster" (1877) & Pipeline (1897-1907)
World Wide:World Wide: Key Elements – Spindletop (1901) Key Elements – Spindletop (1901)Suez Canal Built (Suez Canal Built (18691869))Henry Ford Mass Produces Cars (1908) 9m – (1922) Henry Ford Mass Produces Cars (1908) 9m – (1922) Royal Navy Converts to Oil (1912)Royal Navy Converts to Oil (1912)
Early History of Oil Early History of Oil MonopoliesMonopolies
Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
Early History - AppalachiansEarly History - Appalachians
Dr. Abraham Gesner – Dr. Abraham Gesner – 1849 Distills Kerosene1849 Distills Kerosene
from Oil - Whale Oil from Oil - Whale Oil EndsEnds Drake’s well (1859Drake’s well (1859)
1860 – 1875 Oil Boom 1860 – 1875 Oil Boom 1830-1860 US Rail 1830-1860 US Rail
Lines boom Lines boom
1855 assist 1855 assist bookkeeper bookkeeper
Hewitt & Tuttle, Hewitt & Tuttle, quicklyquickly
cashier & bookkeepercashier & bookkeeper
1862 - Clark & 1862 - Clark & RockefellerRockefeller
Invest in RefineryInvest in Refinery
Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
Standard Oil Monopoly Standard Oil Monopoly GrowsGrows
1867: 1867: Rockefeller & Andrews absorbed William Rockefeller's refinery, Rockefeller & Andrews absorbed William Rockefeller's refinery, & Henry M. Flagler joins partnership& Henry M. Flagler joins partnership
1870: 1870: Standard Oil Company forms - John D. Rockefeller president, Standard Oil Company forms - John D. Rockefeller president, William Rockefeller, Flagler, Andrews & Stephen Harkness William Rockefeller, Flagler, Andrews & Stephen Harkness
1870: 1870: Uses South Improvement Company secret rebates for better Uses South Improvement Company secret rebates for better rates with Pennsylvania Railroad (PRR), Eire, & New York Centralrates with Pennsylvania Railroad (PRR), Eire, & New York Central
Standard Oil organization buys-up opposing interests, or guarantees Standard Oil organization buys-up opposing interests, or guarantees financial security & jobs as partners gaining a monopoly on oil financial security & jobs as partners gaining a monopoly on oil production in USproduction in US
1882: 1882: Separate companies organized in each stateSeparate companies organized in each state
1890: 1890: Standard Oil controlled over 90% of refined oil in USAStandard Oil controlled over 90% of refined oil in USA
1895: 1895: Rockefeller retires from active business but keeps his title as Rockefeller retires from active business but keeps his title as president till 1911president till 1911
John Rockefeller - TimelineJohn Rockefeller - Timeline
Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
Standard Oil Monopoly EndsStandard Oil Monopoly Ends
1900: 1900: Mergers made Standard Oil the largest company in U.S. with Mergers made Standard Oil the largest company in U.S. with fields located in U.S. Began exporting products to Europe & Far East fields located in U.S. Began exporting products to Europe & Far East competing with "Shell" Transport & Trading Company & Royal Dutch competing with "Shell" Transport & Trading Company & Royal Dutch Petroleum Co.Petroleum Co.
1901: 1901: Jan 10 Spindletop's discovery & uncontrolled exploitation Jan 10 Spindletop's discovery & uncontrolled exploitation busted Standard Oil) monopoly in U.S. so now it competed with Shell busted Standard Oil) monopoly in U.S. so now it competed with Shell Transport & Trading, (begun life ferrying oil produced by Rothschilds Transport & Trading, (begun life ferrying oil produced by Rothschilds and Nobles in Baku to Far East and Western Europe) and Royal Dutchand Nobles in Baku to Far East and Western Europe) and Royal Dutch
1903: 1903: Royal Dutch & Shell Oil established the jointly owned Asiatic Royal Dutch & Shell Oil established the jointly owned Asiatic Petroleum Company Limited to combat Standard Oil.Petroleum Company Limited to combat Standard Oil.
1911: 1911: May 15 Supreme Court US sees Standard Oil, now holding 64% May 15 Supreme Court US sees Standard Oil, now holding 64% of oil market, as a monopoly & orders form some 37 new companiesof oil market, as a monopoly & orders form some 37 new companies
John Rockefeller - TimelineJohn Rockefeller - Timeline
Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
Appalachians: Appalachians: Key Elements Key Elements Rail Boom of US (1830-1860)Rail Boom of US (1830-1860)Refining of Oil for Kerosene (1850)Refining of Oil for Kerosene (1850)Oil Boom after Drake’s well (1859)Oil Boom after Drake’s well (1859)Standard Oil Incorporated (1870)Standard Oil Incorporated (1870)Light bulb of Thomas Edison (1878) Light bulb of Thomas Edison (1878)
Baku:Baku: Key Elements Key ElementsRail Boom of Russia (1830-1917)Rail Boom of Russia (1830-1917)Refining of Oil for Kerosene (1830)Refining of Oil for Kerosene (1830)Oil Boom with Nobel Brothers Incorporation (Oil Boom with Nobel Brothers Incorporation (1875)1875)Tanker "Zoroaster" (1877) & Pipeline (1897-1907) Tanker "Zoroaster" (1877) & Pipeline (1897-1907)
World Wide:World Wide: Key Elements – Spindletop (1901) Key Elements – Spindletop (1901)Suez Canal Built (Suez Canal Built (18691869))Henry Ford Mass Produces Cars (1908) 9m – (1922)Henry Ford Mass Produces Cars (1908) 9m – (1922)Royal Navy Converts to Oil (1912)Royal Navy Converts to Oil (1912)
Early History of Oil Early History of Oil MonopoliesMonopolies
Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
Caspian Caspian Sea Sea
Baku Baku
Volga Delta
Volga Delta
Abseron Peninsula
Abseron Peninsula
Zagros MountainsZagros Mountains
Arab ScholarsArab Scholars& Marco Polo& Marco Polo
report civilized report civilized man using oil man using oil
seeps onseeps onAbseron Abseron
Peninsula Peninsula as source of light as source of light
& fuel& fuel With industrializationWith industrialization1830-19011830-1901 became became
world’s largestworld’s largestsource ofsource of
kerosene & oilkerosene & oil
Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
Early History - BakuEarly History - BakuRothchildRothchild
Nobel Brothers OilNobel Brothers Oil
1830-1917 Rail 1830-1917 Rail Boom of RussiaBoom of Russia
Tsars Alex II & IIITsars Alex II & III
1875 – Nobels Invest in 1875 – Nobels Invest in Oil, Exploration & Oil, Exploration &
Refineries, Refineries,
1897 - 1907: 1897 - 1907: Nobel’s Kerosene Nobel’s Kerosene
PipelinePipeline
1883: Rothchild’s 1883: Rothchild’s RailwayRailway
1880’s Invests in Oil 1880’s Invests in Oil Exploration, Refineries, Exploration, Refineries,
Rail & ShipsRail & Ships
Invest in Oil & Invest in Oil & Rail Rail
1878 - Bibi-Heybat?1878 - Bibi-Heybat?
1877 – Nobels 1877 – Nobels Invest TankersInvest Tankers
1875 – Invest in1875 – Invest inKerosene Flimsies Kerosene Flimsies
Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
Baku Oil Monopoly GrowsBaku Oil Monopoly Grows
1873: 1873: Russia used Nobel’s guns which needed a supply of walnut wood Russia used Nobel’s guns which needed a supply of walnut wood for gunstocks from Caucasus region. Oil fever just began in Baku & for gunstocks from Caucasus region. Oil fever just began in Baku & Robert saw profit & brought a small refinery & kerosene plant with Robert saw profit & brought a small refinery & kerosene plant with "walnut money""walnut money"1879: 1879: With his younger smarter brother Ludwig founded Nobel Brothers' With his younger smarter brother Ludwig founded Nobel Brothers' Oil Producing & Extracting Company. Oil Producing & Extracting Company. Ludwig, organized & engineered modern technology related to oil Ludwig, organized & engineered modern technology related to oil production. Built 1production. Built 1stst tanker, Zoroaster, in Caspian Sea reducing tanker, Zoroaster, in Caspian Sea reducing transport expenses. Success led to tanker fleet (including Moses, transport expenses. Success led to tanker fleet (including Moses, Spinoza, & Darwin) further increasing turnover with Nobel’s supplying Spinoza, & Darwin) further increasing turnover with Nobel’s supplying Russia with Baku oil via rivers & Caspian Sea. Ludwig 1Russia with Baku oil via rivers & Caspian Sea. Ludwig 1stst to introduce to introduce railway tanks for oil transport.railway tanks for oil transport.1879: 1879: Built a pipeline reducing transport expenses by five, paying for Built a pipeline reducing transport expenses by five, paying for itself in a year. Built iron oil reservoirs with tank parks in Baku & other itself in a year. Built iron oil reservoirs with tank parks in Baku & other cities. cities. 18801880's Rothschild's interests in Baku supply their refinery on Adriatic 's Rothschild's interests in Baku supply their refinery on Adriatic with Russian oil. In exchange built a railroad from Baku to Black Sea with Russian oil. In exchange built a railroad from Baku to Black Sea port of Batum. Baku oil now major world supplier & new railroad meant port of Batum. Baku oil now major world supplier & new railroad meant Rothschilds had more oil than they could sell & now competing with Rothschilds had more oil than they could sell & now competing with Standard oil, sought markets east of Suez.Standard oil, sought markets east of Suez.1890: 1890: Baku now busiest port in world.Baku now busiest port in world.
Nobels & Rothchilds - TimelineNobels & Rothchilds - Timeline
Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
Baku Oil Monopoly LivesBaku Oil Monopoly Lives1878: 1878: Marcus Samuel expanded from antiques, curios, bric-a-brac, & Marcus Samuel expanded from antiques, curios, bric-a-brac, & exotic sea shells to selling cased Russian kerosene in Far East, top-exotic sea shells to selling cased Russian kerosene in Far East, top-selling fuel in world & used for lamps and stoves selling fuel in world & used for lamps and stoves Standard Oil under priced competitors to defend its Asian markets Standard Oil under priced competitors to defend its Asian markets & controlled almost all world’s supplies. & controlled almost all world’s supplies. 12 years later Samuel visited Baku with Rothschilds & thought to 12 years later Samuel visited Baku with Rothschilds & thought to export oil to Far East via Suez Canal (export oil to Far East via Suez Canal (opened in 1869opened in 1869), countering ), countering Standard Oil competition in region. Built eight tankers that met Standard Oil competition in region. Built eight tankers that met safety regs. of canal to Singapore & Bangkok after noticed harbor safety regs. of canal to Singapore & Bangkok after noticed harbor in Constantinople jammed with tankers loading Russian oil. in Constantinople jammed with tankers loading Russian oil. Rejected Standard's acquisition overtures, Samuel created "Shell" Rejected Standard's acquisition overtures, Samuel created "Shell" Transport & Trading in 1897. Transport & Trading in 1897. 1898: 1898: Rothschild brothers formed Mazut Transportation Society & Rothschild brothers formed Mazut Transportation Society & by 1912 owned 13 large tankers in Caspian with auxiliary ships; by 1912 owned 13 large tankers in Caspian with auxiliary ships; partnered with Shell to transport excess kerosene to Far East.partnered with Shell to transport excess kerosene to Far East.1900: 1900: Nobel Brothers & Rothchild's have oil production exceeding Nobel Brothers & Rothchild's have oil production exceeding USUS1901: 1901: Jan 10 Spindletop's discovery meant that Shell Transport & Jan 10 Spindletop's discovery meant that Shell Transport & Trading, that had been ferrying oil produced by the Rothschilds Trading, that had been ferrying oil produced by the Rothschilds and Nobles in Baku to the Far East & Western Europe could and Nobles in Baku to the Far East & Western Europe could compete directly Standard Oil at a favorable ratecompete directly Standard Oil at a favorable rate1903: 1903: Royal Dutch & Shell established jointly owned Asiatic Royal Dutch & Shell established jointly owned Asiatic Petroleum Company LimitedPetroleum Company Limited
Nobels, Rothchilds, Shell & Standard OilNobels, Rothchilds, Shell & Standard Oil
Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
Joseph StalinJoseph Stalin
1879:1879: December 9 - Joseph Vissarionovich Djugashvili (Stalin) was December 9 - Joseph Vissarionovich Djugashvili (Stalin) was born in Gori, Georgia. born in Gori, Georgia. 1888-94:1888-94: Elementary clerical school in Gori. Elementary clerical school in Gori. 1894:1894: Begins studies at Tiflis Theological Seminary. Begins studies at Tiflis Theological Seminary. 1895:1895: Contacts groups of Russian Marxists exiled to Transcaucasia Contacts groups of Russian Marxists exiled to Transcaucasia by tsarist government.by tsarist government.1896-1898:1896-1898: At Theological Seminary in Tiflis gathers Marxist At Theological Seminary in Tiflis gathers Marxist students & studies Marx, Engels, & Lenin.students & studies Marx, Engels, & Lenin.1898:1898: January formed workers' Marxist circle in Central Railway January formed workers' Marxist circle in Central Railway Workshops of Tiflis.Workshops of Tiflis.1899:1899: May 29 Stalin expelled from Tiflis Theological Seminary for May 29 Stalin expelled from Tiflis Theological Seminary for propagating Marxism.propagating Marxism.1898-1904:1898-1904: Organized, directed revolutionary activities, writes Organized, directed revolutionary activities, writes leaflets, lead strikes & sent to Siberia; received letter from Lenin & leaflets, lead strikes & sent to Siberia; received letter from Lenin & escaped back to Baku to lead general strike of Baku workers.escaped back to Baku to lead general strike of Baku workers.
18931893 19031903
Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
Baku Oil Monopoly DiesBaku Oil Monopoly Dies1903 & 1904:1903 & 1904: Oil worker strikes common against Tsar Oil worker strikes common against Tsar1904:1904: Baku kerosene supplied 47% of needs of UK & 71 % of France Baku kerosene supplied 47% of needs of UK & 71 % of France1905:1905: Revolution halts production at Baku by oil worker strikes; Josef Revolution halts production at Baku by oil worker strikes; Josef Dzhugashvili (Josef Stalin) exiled to SiberiaDzhugashvili (Josef Stalin) exiled to Siberia1911:1911: Musavat party urges a Muslim state with Azerbaijan under Turkey Musavat party urges a Muslim state with Azerbaijan under Turkey1914-18:1914-18: Baku oilfields & oil refineries control by Shell & Nobel Baku oilfields & oil refineries control by Shell & Nobel Brothers, supply Russian Army. UK interest in Transcaucasia & oil-rich Brothers, supply Russian Army. UK interest in Transcaucasia & oil-rich area area 1917:1917: Armed intervention, aimed at Bolsheviks in Transcaucasia & East Armed intervention, aimed at Bolsheviks in Transcaucasia & East to gain control of Baku's oil, discussed in London. Henri Deterding, to gain control of Baku's oil, discussed in London. Henri Deterding, Shell president, buys shares of largest oil producers who fled Baku after Shell president, buys shares of largest oil producers who fled Baku after Oct revolution. Sets up military-political mission in Iran with General Oct revolution. Sets up military-political mission in Iran with General DunstervilleDunsterville1918:1918: March pogroms against Azerbaijanis by Armenians & Bolsheviks March pogroms against Azerbaijanis by Armenians & Bolsheviks in Baku. Declaration of Baku Commune establishes links with Moscow in Baku. Declaration of Baku Commune establishes links with Moscow & recognizes role of Russian Federation . & recognizes role of Russian Federation . 1920:1920: April 28, Bolsheviks seize power in Baku & Nobels sell most of April 28, Bolsheviks seize power in Baku & Nobels sell most of Russian holdings to Standard Oil (NJ). Standard Oil protests Russian holdings to Standard Oil (NJ). Standard Oil protests nationalization refuses cooperation with Soviet government. Mobil, nationalization refuses cooperation with Soviet government. Mobil, invests in Russia. Continued inflow of Western funds help Russian oil invests in Russia. Continued inflow of Western funds help Russian oil production to recover, & by 1923 oil exports climb back to pre-production to recover, & by 1923 oil exports climb back to pre-revolutionary levels.revolutionary levels.1920:1920: Roughly 9 million gas-burning vehicles now in the U.S Roughly 9 million gas-burning vehicles now in the U.S
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Appalachians: Appalachians: Key Elements Key Elements Rail Boom of US (1830-1860)Rail Boom of US (1830-1860)Refining of Oil for Kerosene (1850)Refining of Oil for Kerosene (1850)Oil Boom after Drake’s well (1859)Oil Boom after Drake’s well (1859)Standard Oil Incorporated (1870)Standard Oil Incorporated (1870)Light bulb of Thomas Edison (1878) Light bulb of Thomas Edison (1878)
Baku:Baku: Key Elements Key ElementsRail Boom of Russia (1830-1917)Rail Boom of Russia (1830-1917)Refining of Oil for Kerosene (1830)Refining of Oil for Kerosene (1830)Oil Boom with Nobel Brothers Incorporation (Oil Boom with Nobel Brothers Incorporation (1875)1875)Tanker "Zoroaster" (1877) & Pipeline (1897-1907) Tanker "Zoroaster" (1877) & Pipeline (1897-1907)
World Wide:World Wide: Key Elements – Spindletop (1901) Key Elements – Spindletop (1901)Suez Canal Built (Suez Canal Built (18691869))Henry Ford Mass Produces Cars (1908) 9m – (1922)Henry Ford Mass Produces Cars (1908) 9m – (1922)Royal Navy Converts to Oil (1912)Royal Navy Converts to Oil (1912)
Early History of Oil Early History of Oil MonopoliesMonopolies
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Central Asian & Middle Central Asian & Middle East OilEast Oil
BakuBakuBatumBatum
SuezSuezMISMIS
KirkukKirkuk
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John Arbuthnot “Jackie” Fisher:John Arbuthnot “Jackie” Fisher: 1st Baron Fisher (Jan 1st Baron Fisher (Jan 25, 1841 – July 10, 1920), joined Navy in 1854 & as 325, 1841 – July 10, 1920), joined Navy in 1854 & as 3rdrd Sea Sea Lord built 1Lord built 1st st destroyers, 1902 2destroyers, 1902 2ndnd Sea Lord, in 1905 1 Sea Lord, in 1905 1stst Sea Lord when Germany & Britain in naval arms race. Sea Lord when Germany & Britain in naval arms race. Preferred battlecruiser with speed not amour, introduced Preferred battlecruiser with speed not amour, introduced submarines & converted from coal to oil fuelingsubmarines & converted from coal to oil fuelingWinston Churchill:Winston Churchill: After career as journalist, in army and After career as journalist, in army and then parliament, in 1912 became 1then parliament, in 1912 became 1stst Lord of Admiralty & Lord of Admiralty & ordered conversion from coal to oilordered conversion from coal to oil1901: 1901: Spindletop's discovery lead to Shell Transport & Spindletop's discovery lead to Shell Transport & Trading needing salesTrading needing sales
British Navy British Navy
& Petroleum& PetroleumFisherFisher ChurchillChurchill
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Oil & FordsOil & FordsAutomobileAutomobile
1896:1896: Ford had constructed his first Ford had constructed his first horseless carriage which he sold in horseless carriage which he sold in order to finance work on an improved order to finance work on an improved model.model. 1908:1908: Ford T in production, price as low Ford T in production, price as low as $280. Nearly 15,500,000 sold in the as $280. Nearly 15,500,000 sold in the United States. The Model T heralds United States. The Model T heralds beginning of Motor Age and the car has beginning of Motor Age and the car has evolved from luxury item for the well-to-evolved from luxury item for the well-to-do to essential transportation for the do to essential transportation for the ordinary manordinary man1920:1920: Roughly 9 million gas-burning Roughly 9 million gas-burning vehicles now in the U.Svehicles now in the U.S
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Zagros MountainsZagros Mountains
Abundant Oil Abundant Oil Seeps Seeps
Abundant Abundant AnticlinesAnticlines
Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
Iranian Negotiations BeginIranian Negotiations BeginJacques de Morgan:Jacques de Morgan: An archeologist noted oil An archeologist noted oil seeps in western & SW Persia.seeps in western & SW Persia.
1901:1901: A friend of Persian grand vizier, Antoine A friend of Persian grand vizier, Antoine Kitabgi, Persian commissioner-general of Paris Kitabgi, Persian commissioner-general of Paris Exposition 1900, thinks local oil industry will Exposition 1900, thinks local oil industry will develop. Helped Baron Julius de Reuter with develop. Helped Baron Julius de Reuter with Iranian government concessions that failed.Iranian government concessions that failed.
1901:1901: Asked Sir Henry Drumond Wolff, once Asked Sir Henry Drumond Wolff, once UK minister in Tehran, locate UK investor for UK minister in Tehran, locate UK investor for oil concession.oil concession.
1901:1901: UK William Knox D'Arcy (with Australian UK William Knox D'Arcy (with Australian gold mining fortune) acquires 60 year oil gold mining fortune) acquires 60 year oil concession for all Persian Empire except concession for all Persian Empire except Russian border.Russian border.
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1905:1905: Burma Oil Comp supplies D'Arcy with more finance Burma Oil Comp supplies D'Arcy with more finance1908:1908: Oil at Masjid-i-Suleiman Oil at Masjid-i-Suleiman1907: 1907: Royal Dutch Shell incorporated Royal Dutch Shell incorporated (60%RD - 40%Sh)(60%RD - 40%Sh)1909:1909: Anglo-Persian Oil Company” forms to develop field Anglo-Persian Oil Company” forms to develop field1911:1911: 138 mile pipe Masjid-I-Suleiman - Abadan refinery 138 mile pipe Masjid-I-Suleiman - Abadan refinery1912:1912: Anglo-Persian 10-year contract with Royal Dutch- Anglo-Persian 10-year contract with Royal Dutch-Shell as outlet for crude & oil productsShell as outlet for crude & oil products1914:1914: Anglo-Persian contract to supply Navy’s ships & UK Anglo-Persian contract to supply Navy’s ships & UK government invest £2 million becomes major shareholdergovernment invest £2 million becomes major shareholder1915:1915: Anglo-Persian forms British Tanker Company & at Anglo-Persian forms British Tanker Company & at end of WW I owns a shipping fleetend of WW I owns a shipping fleet1917:1917: Anglo-Persian buys British Petroleum Company, Anglo-Persian buys British Petroleum Company, acquiring a marketing organization for products & founds acquiring a marketing organization for products & founds a research centre at Sunbury-on-Thames in UKa research centre at Sunbury-on-Thames in UK
Masjid-i-Masjid-i-SuleimanSuleiman D’ArcyD’Arcy
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Calouste Calouste Sarkis 5% Sarkis 5%
GulbenkianGulbenkian1869. March 29th:1869. March 29th: Wealthy Armenian family in Istanbul, Wealthy Armenian family in Istanbul, Banker father imported Russian kerosene to Ottoman Banker father imported Russian kerosene to Ottoman empire. Educated in Turkey, & France empire. Educated in Turkey, & France 1897: 1897: Engineering degree, London Kings's CollegeEngineering degree, London Kings's College1898: 1898: Financial & oil advisor to Turkish embassies Paris & Financial & oil advisor to Turkish embassies Paris & LondonLondon1902:1902: Becomes British Citizen Becomes British Citizen1907: 1907: Helped form Royal Dutch Shell Helped form Royal Dutch Shell (60%RD - 40%Sh)(60%RD - 40%Sh)1908: 1908: Organized UK & Dutch Oil Co’s as Turkish Organized UK & Dutch Oil Co’s as Turkish Petroleum Co. Called Mr. 5% from holdingsPetroleum Co. Called Mr. 5% from holdings1910:1910: Consultant to Turkish National Bank pushing Oil Consultant to Turkish National Bank pushing Oil exploration in Iraq & opening up Middle Eastexploration in Iraq & opening up Middle East
Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
Calouste Calouste SarkisSarkis
5% Gulbenkian5% Gulbenkian1928: 1928: Post WWI architect of Red Line Agreement Post WWI architect of Red Line Agreement with British (Persian Oil), Anglo-Dutch (Shell), with British (Persian Oil), Anglo-Dutch (Shell), French (CFP) & US (Exxon & Mobil) joint venture in French (CFP) & US (Exxon & Mobil) joint venture in former Ottoman empire producing areas except former Ottoman empire producing areas except Kuwait & Iran for 5% of all oil found.Kuwait & Iran for 5% of all oil found.Oil in Iraq & Saudi Arabia made him one of world's Oil in Iraq & Saudi Arabia made him one of world's richest men.richest men.Avoided taxes by shuttling between Ritz Hotel in Avoided taxes by shuttling between Ritz Hotel in London & Ritz in Paris.London & Ritz in Paris.Diplomatic status as accredited to Iraqi embassy of Diplomatic status as accredited to Iraqi embassy of London exempting from taxationLondon exempting from taxationFormed Gulbenkian Foundation in Portugal and Formed Gulbenkian Foundation in Portugal and supported the Artssupported the Arts
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Red Line Map of GulbenkianRed Line Map of Gulbenkian
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The Gulbenkian TPC The Gulbenkian TPC AgreementAgreement
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Oil & BritishOil & BritishFleet - IraqFleet - Iraq
1908:1908: discovery of giant Masjid-I-Suleiman by discovery of giant Masjid-I-Suleiman by Anglo-Persian Oil Co reinforces potential of Anglo-Persian Oil Co reinforces potential of Mosul VilayetMosul Vilayet1909:1909: Sultan deposed within 24 hours of Sultan deposed within 24 hours of Anglo-Anglo-PersianPersian signing concession for Mosul Vilayetsigning concession for Mosul Vilayet1912-1913:1912-1913: UK Government proposes Royal UK Government proposes Royal Navy be oil powered & so needs own sourceNavy be oil powered & so needs own source1914:1914: Government has Anglo-Persian join TPC Government has Anglo-Persian join TPC with 50% interest while buying controlling with 50% interest while buying controlling interest of Anglo-Persianinterest of Anglo-Persian
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Iraq Exploration - EventsIraq Exploration - Events28 June 1914:28 June 1914: Grand Vizier sends letter to UK & Grand Vizier sends letter to UK & German Governments proposing to issue German Governments proposing to issue concession to TPCconcession to TPC1920:1920: Treaty Of Sevres Treaty Of Sevres
German interests in TPC assigned to FranceGerman interests in TPC assigned to FranceGovernment of Iraq promised 20% of TPCGovernment of Iraq promised 20% of TPCUS Government objects to exclusion of US Government objects to exclusion of American CompaniesAmerican Companies
1923:1923: Treaty of Lausanne – Iraq becomes British Treaty of Lausanne – Iraq becomes British Mandate but status of Mosul Vilayet unresolved Mandate but status of Mosul Vilayet unresolved 1923:1923: TPC Starts Negotiations with Government TPC Starts Negotiations with GovernmentMarch 1925:March 1925: Signing of Concession with TPC, Signing of Concession with TPC, later Iraq Petroleum Company but with later Iraq Petroleum Company but with no Iraqi no Iraqi direct interestdirect interest
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Iraq Petroleum Company Iraq Petroleum Company (IPC) Shareholders(IPC) Shareholders
Shell (Anglo-Dutch)Shell (Anglo-Dutch) 23.75% 23.75%BP (British)BP (British) 23.75% (Anglo-Per & Anglo- 23.75% (Anglo-Per & Anglo-
Iranian)Iranian)CFP (French)CFP (French) 23.75% (now Total Fina Elf) 23.75% (now Total Fina Elf)Exxon (US)Exxon (US) 11.875% (now Exxon-Mobil) 11.875% (now Exxon-Mobil)Mobil (US)Mobil (US) 11.875% (now Exxon-Mobil) 11.875% (now Exxon-Mobil)Gulbenkian Gulbenkian (Independent) (Independent) 5% 5%
Companies also agreed not to compete with each Companies also agreed not to compete with each other through most of previous Turkish Empire, other through most of previous Turkish Empire, including Saudi Arabia : Exxon & Mobil including Saudi Arabia : Exxon & Mobil reneging on agreement when they formed reneging on agreement when they formed Aramco in Saudi Arabia in 1930’s.Aramco in Saudi Arabia in 1930’s.
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TheThe Way it Way it was!was!
ResultsResultsofof
TreatyTreatyofof
SevresSevres
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The 6th Exploration Well The 6th Exploration Well Spudded after Concession Spudded after Concession
was granted in 1925was granted in 1925
Well blew wild at 90,000 Well blew wild at 90,000 bbls/Daybbls/Day
Reserves of some 17 Billion Reserves of some 17 Billion barrels in Tertiary & barrels in Tertiary &
CretaceousCretaceous
1313thth October 1927, Qaiyarah-1, October 1927, Qaiyarah-1, 4000 Bopd, 124000 Bopd, 120 0 APIAPI
Iraq – FirstIraq – FirstMajor DiscoveryMajor Discovery
14th October 1927 14th October 1927 Baba Gurgur 1Baba Gurgur 1
(Kirkuk #1)(Kirkuk #1)
Kendall 2007 UT - AAPGKendall 2007 UT - AAPGMax SteinekeMax Steineke
History of Petroleum ExplorationHistory of Petroleum Exploration 1933:1933: Chevron acquired a lease to explore Chevron acquired a lease to explore in Saudi Arabiain Saudi Arabia1938:1938: Steineke found oil at the Dammam Steineke found oil at the Dammam domedome1938:1938: Oil was first discovered in KuwaitOil was first discovered in Kuwait1939:1939: Chevron had production & exported Chevron had production & exported the first oilthe first oil1939:1939: Oil is discovered in QatarOil is discovered in Qatar
The start of the golden age of US The start of the golden age of US involvement with explorationinvolvement with exploration forfor foreign cheap oilforeign cheap oil
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1850 - 1910:1850 - 1910: Kerosene Kerosene the fuel of choicethe fuel of choice
1869:1869: Suez Canal opens Suez Canal opens
1878:1878: Electric Light Electric Light
1908:1908: Auto Boom starts Auto Boom starts
1912:1912: UK Navy uses Oil UK Navy uses Oil
1914 – 1918:1914 – 1918: WWI WWI1920:1920: 9 million vehicles 9 million vehicles U.SU.S
1938 – 1945:1938 – 1945: WWII WWII
1948:1948: Israel born Israel born
1948:1948: 1 1stst Arab Israeli War Arab Israeli War
1948:1948: US Net Oil Importer US Net Oil Importer
1952:1952: Iran Oil Nationalized Iran Oil Nationalized
1956:1956: Suez Nationalized Suez Nationalized
1956:1956: 2 2ndnd Arab - Israeli War Arab - Israeli War
1960:1960: OPEC founded OPEC founded
1967:1967: 3 3rdrd Arab - Israeli War Arab - Israeli War
1969:1969: Qaddafi coup Qaddafi coup
1978:1978: Khomeini coup Khomeini coup
1980:1980: Iraq – Iran War Iraq – Iran War
1990-91:1990-91: 1 1stst US - Iraq War US - Iraq War
2003 - :2003 - : 2 2ndnd US - Iraq War US - Iraq War
Oil Time Line – Important Oil Time Line – Important Events Events
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History of Petroleum ExplorationHistory of Petroleum Exploration Oil became commodity of military Oil became commodity of military success success In Second World War Germany In Second World War Germany controlled the oil of Romania controlled the oil of Romania Wanted to acquire Baku (Russian) & Wanted to acquire Baku (Russian) & Persian Gulf (British Empire)Persian Gulf (British Empire)BP was active in Middle East & retained BP was active in Middle East & retained control of Persian Gulf until the USA control of Persian Gulf until the USA acquired exploration concessions in acquired exploration concessions in Saudi Arabia (5%)Saudi Arabia (5%)Cheaper oil for all!!!Cheaper oil for all!!!
De Golyer:De Golyer:
““The center of gravity of world oil production The center of gravity of world oil production is shifting to the Middle East”is shifting to the Middle East”
1945 - Ras Tanura Refinery begins operations 1945 - Ras Tanura Refinery begins operations eventually becomes largest refinery in world eventually becomes largest refinery in world
1944
Center of GravityCenter of Gravity
• US government to acquire direct ownershipUS government to acquire direct ownership• US government to negotiate an agreement with BritishUS government to negotiate an agreement with British• Allow private companies to conduct the businessAllow private companies to conduct the business
“Petroleum”What to do in
the Middle East?
“Petroleum”What to do in
the Middle East?
11stst Option: Ruled out Option: Ruled out22ndnd Option: Before going to Yalta, Roosevelt withdrew it Option: Before going to Yalta, Roosevelt withdrew it from Senatefrom Senate33rdrd Option: Won Option: Won
YaltaYalta
1945: 26 million cars1945: 26 million cars1950: 40 million cars1950: 40 million cars
19481948
Net exporterNet exporter Net importerNet importer
USAUSA
Many new discoveriesMany new discoveries
Growing Demand &Rising ProductionGrowing Demand &Rising Production
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History of the Oil PriceHistory of the Oil Price
1.1. New Aramco: Socol, Standard Oil of NJ, Texaco, SoconyNew Aramco: Socol, Standard Oil of NJ, Texaco, Socony2.2. Gulf Oil – Shell in KuwaitGulf Oil – Shell in Kuwait3.3. Iranian contract between Anglo Iranian & Standard Oil, Iranian contract between Anglo Iranian & Standard Oil, SoconySocony
March 12th, 1947Truman DoctrineMarch 12th, 1947Truman Doctrine
Europe in crisisMarshall PlanEurope in crisisMarshall Plan
1948 May 141948 May 14 - First Arab - Israeli war - First Arab - Israeli war
Birth of IsraelBirth of Israel
1946 June1946 June - Oil giant Burgan field - Oil giant Burgan field discovereddiscovered
1951 May1951 May - 1st shipment of Kuwait - 1st shipment of Kuwait crude oilcrude oil
Ibn Saud’s Dilemmas: -Ibn Saud’s Dilemmas: -
• Birth of IsraelBirth of Israel• US guarantee of Saudi Arabian independenceUS guarantee of Saudi Arabian independence• Soviet threatSoviet threat
King Ibn SaudKing Ibn Saud
Post-war petroleum orderPost-war petroleum orderCenterCenter : Middle East: Middle EastMarketMarket : USA, Western Europe, Japan: USA, Western Europe, JapanTechnologyTechnology : Huge development: Huge developmentProblemProblem : Large surplus of oil: Large surplus of oil How to divide profit?How to divide profit?
Advancement inTechnology
Advancement inTechnology
50-50 Deal, December 195050-50 Deal, December 1950
But the producing countries wantedBut the producing countries wantedmore money and power!more money and power!
Stress on Seven Sisters or Big OilStress on Seven Sisters or Big Oil
Iran: 40 % of Middle Eastern oilIran: 40 % of Middle Eastern oilWeak ShahWeak ShahUS interestUS interestKorean warKorean warBritish hatredBritish hatredNationalization, May 1951, Mossadegh (Mossy)Nationalization, May 1951, Mossadegh (Mossy)
Korean War-
“Iranian Card”
Korean War-
“Iranian Card”
Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
World events, 1947-1973World events, 1947-1973
History of the Oil PriceHistory of the Oil Price
Expropriation vs. economic warfare, 1952Expropriation vs. economic warfare, 1952No oil export, no money, economic troubleNo oil export, no money, economic troubleLaw and order collapsingLaw and order collapsingMossadegh turned to MoscowMossadegh turned to MoscowU.S. and British assisted coupU.S. and British assisted coupShah regained powerShah regained powerOil consortium: Jersey, Socony, Texaco, Oil consortium: Jersey, Socony, Texaco, Standard of California, Gulf; Shell; CFP;Standard of California, Gulf; Shell; CFP; Anglo IranianAnglo IranianResult: USA becomes major player in Middle East, 1954Result: USA becomes major player in Middle East, 1954
Dr. Mohammad Mossadegh
Dr. Mohammad Mossadegh
King Reza Pahlavi
King Reza Pahlavi
Suez represented the post-war petroleum order:Suez represented the post-war petroleum order:2/3 of Europe’s oil passed through Suez2/3 of Europe’s oil passed through Suez2/3 of traffic in Suez was oil2/3 of traffic in Suez was oil
SuezSuez
1952:1952: A coup removed King Farouk A coup removed King Farouk1954:1954: Colonel Gamal Abdel Nasser became dictator Colonel Gamal Abdel Nasser became dictator
Rejected Western involvementRejected Western involvementPan-ArabismPan-Arabism““Greatest international crime” – the creation of IsraelGreatest international crime” – the creation of IsraelAcquired weapons from the Soviet blockAcquired weapons from the Soviet block
Gamal Abdel-NasserGamal Abdel-Nasser
Whether to build the Aswan dam?Whether to build the Aswan dam?
US rejectedUS rejectedRevenge: expropriation of Suez Canal, July 26, 1956Revenge: expropriation of Suez Canal, July 26, 1956
The French and British wanted military action! The French and British wanted military action! Eisenhower did not want war!Eisenhower did not want war!
AswanAswan
War plot against Egypt: France, UK, & IsraelWar plot against Egypt: France, UK, & Israel
October 29, 1956October 29, 1956
Eisenhower was furiousEisenhower was furious
Soviet Union threatened by rocket attacksSoviet Union threatened by rocket attacks
Revolution in HungaryRevolution in Hungary
Result: Nasser became a hero and leader of ArabsResult: Nasser became a hero and leader of Arabs
2nd Arab Israeli War2nd Arab Israeli War
1958 - Oil found in the Abu Dhabii1958 - Oil found in the Abu Dhabii
1956 - Aramco confirms scale of Ghawar and Safaniya1956 - Aramco confirms scale of Ghawar and Safaniya
World oil production
8.7 million barrels 42 million barrels
Middle East
1.1 million barrels 18.2 million barrels
U.S. production share
64% 22%
U.S. reserves share
34% 7%
1948 1972
50-50% is not enough any more50-50% is not enough any more
Nasser ascendantNasser ascendant Soviets build AswanSoviets build Aswan Syria joins Egypt: United Arab RepublicSyria joins Egypt: United Arab Republic Nasser controls oil: Suez and pipelinesNasser controls oil: Suez and pipelines
Producer countries wanted more money and powerProducer countries wanted more money and power
Stress on Seven Sisters or Big OilStress on Seven Sisters or Big Oil
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Middle East and OPEC events, 1947-1973Middle East and OPEC events, 1947-1973
History of the Oil PriceHistory of the Oil Price
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History of Petroleum ExplorationHistory of Petroleum Exploration September 1960September 1960, Organization of Organization of Petroleum Exporting Countries (OPEC) Petroleum Exporting Countries (OPEC) founded in Baghdad, Iraqfounded in Baghdad, IraqOPEC’s proposed to unify & OPEC’s proposed to unify & coordinate members' petroleum coordinate members' petroleum policiespoliciesOPEC members' national oil ministers OPEC members' national oil ministers meet regularly to discuss pricesmeet regularly to discuss pricesSince 1982 set crude oil production Since 1982 set crude oil production quotasquotas
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Original OPEC members include Iran, Iraq, Original OPEC members include Iran, Iraq, Kuwait, Saudi Arabia, & VenezuelaKuwait, Saudi Arabia, & VenezuelaBetween 1960 & 1975, expanded to Between 1960 & 1975, expanded to include Qatar (1961), Indonesia (1962), include Qatar (1961), Indonesia (1962), Libya (1962), United Arab Emirates (1967), Libya (1962), United Arab Emirates (1967), Algeria (1969), & Nigeria (1971) Algeria (1969), & Nigeria (1971) Ecuador & Gabon were members of Ecuador & Gabon were members of OPEC, but Ecuador withdrew in December OPEC, but Ecuador withdrew in December 1992, & Gabon followed suit in January 1992, & Gabon followed suit in January 19951995
History of Petroleum ExplorationHistory of Petroleum Exploration
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History of Petroleum ExplorationHistory of Petroleum Exploration
Current 11 OPEC members are Algeria, Current 11 OPEC members are Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Nigeria, Qatar, Saudi Arabia, United Arab Emirates, & Venezuela Emirates, & Venezuela Produce some 40% world's oil Produce some 40% world's oil Have more than 77% world's proven oil Have more than 77% world's proven oil reservesreservesOPEC also holds most of world's excess OPEC also holds most of world's excess oil production capacityoil production capacity
End of 1950s: Soviet Union second largest oil producerEnd of 1950s: Soviet Union second largest oil producer
Oil companies cut pricesOil companies cut prices
• Build national refineriesBuild national refineries• National integrated oil companiesNational integrated oil companies• Stabilize market for themselves, 60-40 % shareStabilize market for themselves, 60-40 % share
OPEC’s aim in 1960:OPEC’s aim in 1960:
OPECOPEC
1960s: more discoveries in Africa, large oil surplus1960s: more discoveries in Africa, large oil surplus
Nasser’s prestige decliningNasser’s prestige decliningHe wanted to gain recognition: liquidation of IsraelHe wanted to gain recognition: liquidation of IsraelBlockade against Israeli shipping,Blockade against Israeli shipping,Military buildup with Syria, Jordan, IraqMilitary buildup with Syria, Jordan, Iraq
June 5, 1967: 3June 5, 1967: 3rdrd Arab-Israeli war, 6 day war Arab-Israeli war, 6 day warOccupation of Sinai, Gaza, West Bank, East JerusalemOccupation of Sinai, Gaza, West Bank, East Jerusalem
Six Day WarSix Day War
Oil embargo against Israel’s friendsOil embargo against Israel’s friends
Arab oil decreased by 60%Arab oil decreased by 60%No effect – oil is abundant, cheapNo effect – oil is abundant, cheapEmbargo lifted in SeptemberEmbargo lifted in September
End of 1960s, early 1970s
Recession in US and British powerRecession in US and British power
Vietnam warVietnam warAnti-Americanism becomes a great fashionAnti-Americanism becomes a great fashionNixon-doctrineNixon-doctrine
Demand in oil was catching up with supply – end of surplusDemand in oil was catching up with supply – end of surplus
Huge economic growth fueled by oilHuge economic growth fueled by oil
US oil production: 11.3 million barrels per day, the peakUS oil production: 11.3 million barrels per day, the peakMore dependency on Middle Eastern oilMore dependency on Middle Eastern oil
1971: collapse of Bretton Woods, replaced 1971: collapse of Bretton Woods, replaced by floating exchange ratesby floating exchange rates
RichardNixon
RichardNixon
Occidental Petroleum discovered oil in Libya in 1966Occidental Petroleum discovered oil in Libya in 1966
Qaddafi coup, 1969Qaddafi coup, 1969Increase in oil priceIncrease in oil priceAll the countries increased their profit shareAll the countries increased their profit share
Muhammar Qaddafi
Muhammar Qaddafi
Egypt was bankrupt when Nasserism endedEgypt was bankrupt when Nasserism endedSadat wanted to restore order & make peace with IsraelSadat wanted to restore order & make peace with IsraelIsrael disinterested because of its 1967 successIsrael disinterested because of its 1967 success
1973 Yom Kippur war1973 Yom Kippur war
Anwar Sadat
Yom Kippur War
Anwar Sadat
Yom Kippur War
The Soviet Union supported Egypt and SyriaThe Soviet Union supported Egypt and SyriaThe USA supported IsraelThe USA supported IsraelWorld War conflict was imminentWorld War conflict was imminentOil exporters increased oil prices 100%Oil exporters increased oil prices 100%Arabs cut oil supply and eventually stopped exporting to USAArabs cut oil supply and eventually stopped exporting to USAA weak president in the Watergate agony contributed to the A weak president in the Watergate agony contributed to the oil crisisoil crisis
WatergateWatergate
Boom timesBoom times
Alaska, Mexico discoveriesAlaska, Mexico discoveriesNorth Sea: the biggest play of allNorth Sea: the biggest play of all
No Stress on Seven Sisters or Big OilNo Stress on Seven Sisters or Big Oil
Iran: too much money – corruption, chaos, politicalIran: too much money – corruption, chaos, political tensionstensionsShah represented modernizationShah represented modernizationShiite fundamentalists hated US as main ally of ShahShiite fundamentalists hated US as main ally of ShahEscalating chaos in oil industryEscalating chaos in oil industryBy December 1978 no oil exports from IranBy December 1978 no oil exports from IranShah escapesShah escapesFebruary 1, Khomeini returns to TehranFebruary 1, Khomeini returns to Tehran
Ayatollah Ruhollah KhomeiniAyatollah Ruhollah KhomeiniAyatollah Ruhollah KhomeiniAyatollah Ruhollah Khomeini
Second Shock
Panic in the world market: price went up from $13 to $34Panic in the world market: price went up from $13 to $34
From March 1979, Iranian export started to come backFrom March 1979, Iranian export started to come back
Shortage in oil: long lines at gas stationsShortage in oil: long lines at gas stations
Peace accord: Camp DavidPeace accord: Camp David
Jimmy CarterJimmy Carter
November 4, 1979November 4, 1979: Hostage crisis: Hostage crisis Shah allowed into USA for medical treatmentShah allowed into USA for medical treatment
West, especially USA seemed very weakWest, especially USA seemed very weak
Soviets invaded Afghanistan Soviets invaded Afghanistan
Price: $45Price: $45
HostagesHostages
Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
World events, 1973-1981World events, 1973-1981
History of the Oil PriceHistory of the Oil Price
September 22, 1980: Iraq attacks Iran
Early 80’s:Early 80’s:Two drastic changes: Huge investment in explorationTwo drastic changes: Huge investment in explorationDecreasing demandDecreasing demandResult: oil surplusResult: oil surplus
June 1982: Lebanon warJune 1982: Lebanon war
Golden age for oil geologistsGolden age for oil geologists
Saddam Husseinof Iraq
Saddam Husseinof Iraq
Cheap oil: financial crisis in some oil exportersCheap oil: financial crisis in some oil exportersMukluk dry hole: end of exploration boomMukluk dry hole: end of exploration boom
End of pessimism of the 70sEnd of pessimism of the 70sEconomy is booming, but not because of oil fuelEconomy is booming, but not because of oil fuelOil is not that dangerous as beforeOil is not that dangerous as before
August 2, 1990: Iraqi invasion of KuwaitAugust 2, 1990: Iraqi invasion of KuwaitNew oil shock, supply decreasedNew oil shock, supply decreasedLoss had been compensated by December fromLoss had been compensated by December fromother sourcesother sources
January 17, 1991: Desert StormJanuary 17, 1991: Desert StormFebruary 28 cease fireFebruary 28 cease fire
Desert StormDesert Storm
Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
World events, 1981-1999World events, 1981-1999
History of the Oil PriceHistory of the Oil Price
Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
OPEC suspended price band after Sept 11 believing OPEC suspended price band after Sept 11 believing stability of market more important than OPEC price target. stability of market more important than OPEC price target. Officially suspended Jan 2002 but basket price again within Officially suspended Jan 2002 but basket price again within band, & OPEC members speak again of keeping prices band, & OPEC members speak again of keeping prices within $22-$28/barrel rangewithin $22-$28/barrel range
History of Petroleum ExplorationHistory of Petroleum Exploration
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Non-OPEC countries produced 60% of Non-OPEC countries produced 60% of world's oil in 2005 with a steady increase world's oil in 2005 with a steady increase since 1993 since 1993 Currently only 4 (Saudi Arabia, Iran, UAE, & Currently only 4 (Saudi Arabia, Iran, UAE, & Venezuela) in top 10 oil producers were Venezuela) in top 10 oil producers were OPECOPECMost prolific producers are Most prolific producers are Saudi Arabia 11, Saudi Arabia 11, Russia 9, USA 8, Iran 4, Mexico 4, China 4, Russia 9, USA 8, Iran 4, Mexico 4, China 4, Canada 3, Norway 3, UAE 3, Venezuela 3, Canada 3, Norway 3, UAE 3, Venezuela 3, Kuwait 3, Nigeria 3, Algeria 2, Brazil 2Kuwait 3, Nigeria 3, Algeria 2, Brazil 2Non-OPEC countries have most of world's Non-OPEC countries have most of world's capacity for refining crude oil into gasoline & capacity for refining crude oil into gasoline & heating oilheating oil
Non-OPEC countries produced 60% of Non-OPEC countries produced 60% of world's oil in 2005 with a steady increase world's oil in 2005 with a steady increase since 1993 since 1993 Currently only 4 (Saudi Arabia, Iran, UAE, & Currently only 4 (Saudi Arabia, Iran, UAE, & Venezuela) in top 10 oil producers were Venezuela) in top 10 oil producers were OPECOPECMost prolific producers are Most prolific producers are Saudi Arabia 11, Saudi Arabia 11, Russia 9, USA 8, Iran 4, Mexico 4, China 4, Russia 9, USA 8, Iran 4, Mexico 4, China 4, Canada 3, Norway 3, UAE 3, Venezuela 3, Canada 3, Norway 3, UAE 3, Venezuela 3, Kuwait 3, Nigeria 3, Algeria 2, Brazil 2Kuwait 3, Nigeria 3, Algeria 2, Brazil 2Non-OPEC countries have most of world's Non-OPEC countries have most of world's capacity for refining crude oil into gasoline & capacity for refining crude oil into gasoline & heating oilheating oil
World Petroleum ExploitationWorld Petroleum Exploitation
Kendall 2007 UT - AAPGKendall 2007 UT - AAPGCheap transportation in USA essential to maintain even the Cheap transportation in USA essential to maintain even the most rural subsistence economy!most rural subsistence economy!
History of Petroleum ExplorationHistory of Petroleum Exploration
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““World Petroleum Reserves”World Petroleum Reserves”
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Iraq's RoleIraq's Role
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Iraq's RoleIraq's Role
"By 2010 we will need [a further] 50 million "By 2010 we will need [a further] 50 million barrels a day. The Middle East, with two-barrels a day. The Middle East, with two-thirds of the oil and the lowest cost, is still thirds of the oil and the lowest cost, is still where the prize lies." - US Vice President where the prize lies." - US Vice President Dick Cheney, as Halliburton chief executive Dick Cheney, as Halliburton chief executive officer, London, fall 1999officer, London, fall 1999From cynic’s perspective Bush & Cheney's From cynic’s perspective Bush & Cheney's Iraq war may be over & its “Mission Iraq war may be over & its “Mission Accomplished”Accomplished”Costs of over trillion dollars spent, & Costs of over trillion dollars spent, & anywhere from 50,000 to 500,000 Iraqis & anywhere from 50,000 to 500,000 Iraqis & 3,161 US military dead3,161 US military dead
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Iraq's New Petroleum LawsIraq's New Petroleum LawsFrom 1972 to 1975 Iraqi resources Nationalized. Replaced by From 1972 to 1975 Iraqi resources Nationalized. Replaced by
production sharing agreements (PSAs) - Operating production sharing agreements (PSAs) - Operating Companies get up to 75%. Sixty-five of Iraq's roughly 80 Companies get up to 75%. Sixty-five of Iraq's roughly 80 oilfields open for bid. National revenue distribution Kurds oilfields open for bid. National revenue distribution Kurds in north, Shi'ites in south and Sunnis in center. Most of in north, Shi'ites in south and Sunnis in center. Most of reserves are in Shi'ite-dominated south, Kurdish north reserves are in Shi'ite-dominated south, Kurdish north holds the best explartion prospectsholds the best explartion prospects
New “Law” drafted by US consultants hired by USA New “Law” drafted by US consultants hired by USA administration; vetted US Oil, International Monetary Fund, administration; vetted US Oil, International Monetary Fund, former US deputy defense secretary Paul Wolfowitz' World former US deputy defense secretary Paul Wolfowitz' World Bank, & US Agency for International Development. Bank, & US Agency for International Development.
Original language English, not Arabic.Original language English, not Arabic.Iraqi oil to be controlled by "Federal Oil and Gas Council", oil Iraqi oil to be controlled by "Federal Oil and Gas Council", oil
experts from inside & outside Iraq, includes US executives. experts from inside & outside Iraq, includes US executives.
Iraqi public & overwhelming majority of Parliament members Iraqi public & overwhelming majority of Parliament members out of loop.out of loop.
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Iraq's RoleIraq's Role
U.S. War Against Terrorism enters second U.S. War Against Terrorism enters second deadly phase spreading to other regions of deadly phase spreading to other regions of Middle East this yearMiddle East this yearMiddle East a geopolitical cauldron - Middle East a geopolitical cauldron - Caspian States on eastern flank & Caspian States on eastern flank & Mediterranean on western flank; bridge Mediterranean on western flank; bridge between Europe, Africa & Asiabetween Europe, Africa & AsiaImportant current battlefields are located Important current battlefields are located within this region:- Iraq & Iran, the West within this region:- Iraq & Iran, the West Bank, Somalia, Sudan & Afghanistan Bank, Somalia, Sudan & Afghanistan
Thomas Homer-Dixon’s Model For ConflictEnvironmental Scarcity ---> Social Effects --->
Violent Conflict
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Iraq's RoleIraq's RoleU.S. hoped to pursue military objectives without U.S. hoped to pursue military objectives without threat of interrupted oil supplythreat of interrupted oil supplyBush secured agreement with Putin to access Bush secured agreement with Putin to access oil from Russia against threats of another OPEC oil from Russia against threats of another OPEC oil embargooil embargoExploration & production booming in Russia as Exploration & production booming in Russia as new pipelines developnew pipelines developChevronTexaco, BP Amoco, ExxonMobil, ChevronTexaco, BP Amoco, ExxonMobil, Conoco, & Royal Dutch Shell work with Russia Conoco, & Royal Dutch Shell work with Russia to develop oil fields with investment & to develop oil fields with investment & technologytechnologySaudi relations with USA, world’s largest oil Saudi relations with USA, world’s largest oil importer, strong despite war on terrorism, importer, strong despite war on terrorism, continued problems with Iraq & renewed continued problems with Iraq & renewed violence in Israel & Palestineviolence in Israel & Palestine
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ChokepointsChokepoints Over 30 million barrels/day pass through narrow Over 30 million barrels/day pass through narrow shipping lanes & pipelinesshipping lanes & pipelinesStrait of Hormuz between Oman/Iran - 15.4 Strait of Hormuz between Oman/Iran - 15.4 mbbs/daymbbs/dayStrait of Malacca between Malaysia/Singapore - 9.5 Strait of Malacca between Malaysia/Singapore - 9.5 mbbs/day mbbs/day Bab el-Mandab between Djibouti/Eritrea/Yemen 3.3 Bab el-Mandab between Djibouti/Eritrea/Yemen 3.3 mbbs/day mbbs/day Suez Canal & Sumed Pipeline Egypt; connects the Suez Canal & Sumed Pipeline Egypt; connects the Red Sea & Gulf of Suez - 3.1 mbbs/day Red Sea & Gulf of Suez - 3.1 mbbs/day Bosphorus Turkey - 1.7 mbbs/day Bosphorus Turkey - 1.7 mbbs/day Russian Pipelines/Ports, e.g. Druzhba - 1.25 Russian Pipelines/Ports, e.g. Druzhba - 1.25 mbbs/day mbbs/day Panama Canal & Pipeline - 0.6 million mbbs/day Panama Canal & Pipeline - 0.6 million mbbs/day
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IRAQ’s RoleIRAQ’s Role
Washington forecasts a drop in IraqWashington forecasts a drop in Iraq output to 1.3 output to 1.3 million barrels a day by year end from just under million barrels a day by year end from just under 2 million in January. Before war 2.6 million 2 million in January. Before war 2.6 million As military confrontation interrupts Iraqi exports, As military confrontation interrupts Iraqi exports, Saudi Arabia & other OPEC members provide Saudi Arabia & other OPEC members provide spare capacity to cover shortfallsspare capacity to cover shortfalls
Saudi Arabia Saudi Arabia 264.3 bbls 264.3 bbls 204 Tcf204 TcfIran Iran 132.5 bbls 132.5 bbls 94.5 Tcf94.5 TcfIraq Iraq 115 bbls 110 Tcf115 bbls 110 TcfKuwait Kuwait 101.5 bbls 101.5 bbls 55 Tcf 55 Tcf
Crude Oil(BB) - Natural Gas (TCF)Crude Oil(BB) - Natural Gas (TCF)
Kendall 2007 UT - AAPGKendall 2007 UT - AAPG
ConclusionsConclusionsAs in 1986 & 1998 Gulf War, OilAs in 1986 & 1998 Gulf War, Oil prices have risen prices have risen with current US - Iraq Warwith current US - Iraq WarOPEC responding by countering Russian moves OPEC responding by countering Russian moves to take market share from Saudi Arabia & other to take market share from Saudi Arabia & other Middle East producers Middle East producers Russia is stronger today than it was in 1986 & Russia is stronger today than it was in 1986 & more powerful ally but it is depleting its reservesmore powerful ally but it is depleting its reservesIslamic world fighting back, namely the terrorist Islamic world fighting back, namely the terrorist element:element:
e.g. Strait of Hormuz could be blocked by e.g. Strait of Hormuz could be blocked by sinking of major oil tankers as threatened by sinking of major oil tankers as threatened by Osama bin Laden; no longer fiction of Osama bin Laden; no longer fiction of geopolitical thriller, as Osama dreams of oil geopolitical thriller, as Osama dreams of oil prices of over $100 a barrel!prices of over $100 a barrel!
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Long-term ConclusionsLong-term ConclusionsOilOil industry unable to protect against commodity industry unable to protect against commodity market’s speculators benefiting from warmarket’s speculators benefiting from warOil markets influenced by short-term events of Oil markets influenced by short-term events of war & weather, & trading tactics of speculators war & weather, & trading tactics of speculators Other political & geological factors also in playOther political & geological factors also in playOil is a depleting & finite resourceOil is a depleting & finite resourceNon-OPEC oil producers could have huge, long-Non-OPEC oil producers could have huge, long-life reserves paralleling production declines life reserves paralleling production declines Small oil companies in USA uniquely positioned Small oil companies in USA uniquely positioned to make more profit from their assetsto make more profit from their assetsNever the less without care, production of cheap Never the less without care, production of cheap oil of West will continue to peak & go into declineoil of West will continue to peak & go into decline
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National integrated oil companiesNational integrated oil companiesNational refineriesNational refineries
StandardStandardOilOil
Baku OilBaku Oil
Nobel Brothers OilNobel Brothers Oil ShellShellTransportationTransportation
PersianPersianOilOil
RoyalRoyalDutchDutchShellShell
5% Arabian5% ArabianOilOil
Long-termLong-termConclusionsConclusions
As entrepreneurs of 19th century so OPEC, As entrepreneurs of 19th century so OPEC, other producing countries & consuming other producing countries & consuming countries all aim to stabilize the energy countries all aim to stabilize the energy market for themselves from:market for themselves from:
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ConclusionsConclusions
Now to Now to Supper!Supper!