Military Review

Blood War 100 years ago. Part of 2

A lot of attention was paid to oil transportation. Both in the USA and other foreign countries, the network of oil pipelines has been significantly expanded. During the years 1939-1945. tonnage of american tanker fleet increased by almost 3,5 times and reached 9,5 million tons.

During the same period, it was possible to observe a significant weakening of the economic power of the British oil monopolies. As a result of the hostilities, oil fields and oil refineries controlled by Royal Detch Shell in Europe and Indonesia were partially destroyed. The expansion of enterprises in the Middle and Near East could not compensate for the damage caused by the Japanese and the Germans. Although tanker losses by the beginning of 1947 were almost recovered, the share of England in the world tanker fleet decreased from 28,5% in 1939 to 18,4% by the beginning of 1946.

At the end of 1944, the question of an intergovernmental Anglo-American oil agreement was raised. In September, 1945 signed an Anglo-American agreement on oil in a version that reflects the interests of the American monopolies. England, in accordance with this agreement, was supposed to recognize the infiltration of American monopolies into countries that had previously been almost completely (economically and politically) controlled by the "Lady of the Seas." True, some compensation for England was to be the political and military support of the United States in the preservation of the British Empire.

In the countries of the Americas, the proportion of British oil companies systematically began to fall. In Peru, the American company Standard Oil (New Jersey) received a new concession in an area of ​​5,5 million acres, the share of American companies in oil production sharply increased in Venezuela, where Royal Detch Shell settled much earlier than its competitors. American oil monopolies have taken over newly discovered deposits in Colombia, Canada and other countries.

According to the Brazilian law, adopted on the eve of the Second World War, the participation of foreign companies in the extraction and refining of oil was prohibited. Under pressure from the United States in 1946, this law was amended, and the exploitation of Brazil’s mineral wealth is permitted to "societies organized in Brazil." After this amendment, a new “national” company was organized, in which Standard Oil played a decisive role.

In Egypt, Standard Oil received a concession to develop oil fields discovered in the Sinai desert and to build new plants.

The central place in the expansion of American oil monopolies was occupied by the countries of the Near and Middle East, which, according to the wealth of oil resources, belonged to one of the first places in the world. Along with the economic value, it is necessary to note the extremely important strategic importance of the countries of the Middle East located on the border of three continents. That is why, even at the beginning of the 20 century, there was a stubborn struggle between the leading powers to establish political and economic control over the countries of the Middle East.

On the eve of the Second World War, the oil resources of these countries were almost completely monopolized by several British and American oil companies. The English company Anglo-Iranian Oil completely controlled the fields, oil production and refining in Iran.

Most of the oil extracted from the three fields of Southern Iran: Messshid Suleiman, Haft Kel and Naft Kane, was pumped through a pipeline to an oil refinery in Abadan. The capacity of this plant during the war years was expanded to 400 thousand barrels per day. In addition, there were two more plants: in Bender-Shahpur and Naft Kane. The annual production capacity of the factories was: in Abadan 18 mln. Tons, in Bender-Shahpur - 2,5 mln. Tons and in Naft Kan - 150 thousand. Tons ["Etudes et Conjuncture economie mondiale", May 1947 r].

In Bahrain and Saudi Arabia, the oil concessions were wholly owned by American companies Standard Oil of California and Texas Oil. In Bahrain, the exploitation of oil fields was initiated in 1932 by Bahrain Petroleum Company, a subsidiary of the above two US companies. And in 1937, the first oil refinery was put into operation. The total capacity of Bahraini factories - 3,25 million tons. Oil refineries in Saudi Arabia with a capacity of 3,75 mln. Tons were located in Ras Tanura.

In Kuwait, the handicrafts were in the hands of the Kuwait Oil mixed society, whose shares were held in half by Anglo-Iranian Force and Golf Oil. All the oil produced was exported to refineries owned by British companies.

After the end of the First World War, the Mosulsky wilayet withdrew from Turkey to a new state - Iraq. At the beginning of 1920, after an intense struggle between Britain and France, the latter won shares in the former Anglo-German concession. In May, 1920 of the United States demanded that they be allowed to operate Iraqi fields. England was forced to agree. In the later-organized Iraqi Oil Company, the shares were distributed as follows: Royal Detch Shell Trust and Anglo-Saxon Petroleum - 52,5%, Standard Oil (New Jersey) and Socony Vacuum - 23,75%, French company Frances de Petrol - 23,75%.

Oil, mainly produced in the Kirkuk area, was transported via an oil pipeline that has two branches to Hadita: one in Tripoli, the other in Haifa. In both cities, a significant part of the oil was delivered to the specially built oil refineries for processing.

Iraq Petroleum Corporation owned oil concessions in Qatar and in Oman on the shores of the Persian Gulf. In addition, its subsidiary Petroleum Development received in 1947 an exclusive right to explore and exploit oil in Transjordan for a period of 75 years.

The common conditions for all foreign concessions have become exclusively the enslaving conditions imposed on the states on whose territory oil was produced, and the systematic violation of their obligations. Speeches in the Iraqi press deserve attention, emphasizing that Iraq gives the bulk of England’s oil concessions for a small fee and that the Iraqi government must take measures to eliminate the damage caused by foreign companies.

Iranian public also repeatedly expressed its indignation at the orders established at Anglo-Iranian Oil enterprises. The terms of the concession contract were systematically violated.

Prior to the outbreak of World War II, British oil companies played a leading role in the Middle East. Using the military and diplomatic apparatus of the British Empire, they strongly hindered the development of oil production at concessions received by their competitors.

Most Arabian countries were ruled by Great Britain by virtue of its mandate or were under its military and political control. Economically, the British oil companies were in a better position than the American ones, since they actually owned the oil pipelines in Iran and Iraq, and only with their permission could a certain oil pipeline be laid not only in the countries where oil was produced, but also in countries through which she transported (Transjordan, Palestine - see diagram).

The expansion of production and sales of Middle Eastern oil was also hampered by the conclusion of special agreements. American, British and French companies that were part of the Iraq Petroleum Company, were not entitled to independently participate in oil concessions in the so-called. Red Line District. This region included: Turkey, Syria, Lebanon, Palestine, Transjordan, Saudi Arabia and other Arab countries. Under an agreement between Anglo-Iranian Oil and Golf Company, which jointly own the concession in Kuwait, the markets were distributed between the two companies.

As a result, although American oil companies controlled almost 40% of all geological reserves in the Middle and Near East, the capacity of their own refineries was only 12%, and production was 10%.

During the war, and especially after its end, the situation changes dramatically. American oil companies not only develop oil production and refining at their concessions, but also occupy leading positions in those countries in which the presence of oil was assumed or that were important in transporting oil to the Mediterranean Sea.

In 1946, the Arabian American Oil oil output increased by 11 times compared to the prewar period.

The idea of ​​oil production in the Middle East (in thousands of tons) and the share of American and British concessions in it is given in the table below:

Table No. 2 (according to Petroleum Press Service, February 1947 and Oil Weekly, May 1946):

In 1946, Kuwait organized oil production from wells that had not previously been exploited. By 1946, as a result of the measures taken, the proportion of American oil companies has tripled compared to 1938.

It should be noted the expansion of the United States and in other countries of the Middle East. In Lebanon, during a conflict between France and England, mainly caused by the struggle for oil, American companies were granted a concession to build oil refineries in Lebanon. In Turkey, in a number of areas, Americans were granted the right to produce oil exploration.

At the end of 1947, two important agreements were concluded that further strengthened the position of the American oil monopolies. According to the first of them, Iranian Oil together with Sokoni Vacuum and Standard Oil (New Jersey) organized Middle East Pipelines company, in which half of the shares belonged to Iranian Oil, 10% of Soconey Vacuum and the rest of 40 % "Standard Oil" (New Jersey).

Under the same agreement, the British pledged to supply a significant amount of Iranian oil to American partners for at least 20 years.

Under the second agreement, Arabian American Oil received a loan in the amount of 102 million from Standard Oil (New Jersey) and Sokony Vacuum and transferred the first 40% and the second 10% of the shares.

Both agreements reflected not only a change in the balance of power within the American monopolies and between them and the British, but also affected the interests of France - contrary to the Red Line agreement, American companies acted ignoring French partners.

As a result of these agreements, American oil companies are moving into a dominant role in the extraction and transportation of oil, while British companies are forced to submit to a more powerful competitor and move to the position of junior partner. As for the French companies, their interests are not considered by either the British or the American parties. France is only notified of the decisions taken.

American monopolies, in particular Standard Oil (New Jersey), sought to supply Europe mainly with Middle Eastern oil. In 1947, the Italian oil refining industry was divided between Standard Oil and Iranian Oil. The first, in agreement with the Italian government, actually received at its disposal an oil refinery in Bari, the second - plants in Porta Marghera. Formally, both companies signed an agreement with the Italian company Agip, which previously fully controlled the processing and marketing of oil in Italy.

The transfer of Western European countries to the supply of exclusively Middle Eastern oil increased the region’s dependence on the British and, especially, American monopolies.

Thus, the key trend in the first half of the 20 century was the desire of oil companies to monopolize the production and sale of oil throughout the world.

After World War I, as a result of the defeat of Germany, the economic power of the British and American oil monopolies and their influence in foreign policy sharply increased. Despite the seizure of almost all free or semi-free sources of oil, the British and American oil monopolies failed to achieve complete dominance in the oil market.

It is worth noting the fact that Standard Oil (New Jersey) cartel agreements with “I. G. Farbenindustry, having rendered strong support to Hitler Germany, at the same time caused considerable harm to the interests of the national defense of the United States. Thus, in accordance with the agreement concluded between these two monopolies, the results of surveys to improve the quality of aviation gas produced in Standard Oil laboratories were reported primarily to Germany. During the war, Standard Oil made every effort to save capital “I. G. Farbenindusgri "from confiscation by the US authorities. After the outbreak of hostilities in Europe, Standard Oil was transferred to full control of Jasco in the United States and the British Empire - half of whose shares belonged to “I. G. Farbenindustri. The latter in return received shares that were in the rest of the world. This transaction was saved capital "I. G. Farbenindustri ", subject to confiscation in the British Empire.

There is also the Anglo-American rivalry - for sources of raw materials and markets. The goal of the USA and England during the Second World War was the elimination of their competitors - Germany and Japan. But an even more powerful competitor appeared in the face of the bloc, which included the USSR and its allies.

After the end of the Second World War, a decisive advantage turned out to be on the side of the American monopolies - due to the strengthening of Britain's financial and economic dependence on the United States. England was forced to make a number of serious concessions and, in particular, to allow the revitalization of American oil companies in countries that before the war were considered the monopoly sphere of influence of British capital (Arab East, Iran, etc.). But the Americans began to seek complete supremacy throughout the world.

Thus, if after World War I came to an end to the unchallenged domination of oil monopolies in sales markets, as a result of World War II, major sources of oil concentrated in the countries controlled by the USSR fell out of control of the Anglo-American oil monopolies.

Before World War I, the US oil fields were the base of development and the source of power of the American oil monopolies. Then the situation changed - and the geological reserves of oil in foreign countries, controlled by American capital, exceeded the geological reserves of the United States. And if the proportion of these countries in the total oil production was continuously increasing, then the share of the United States itself tended to a steady decline. The United States has chosen to exploit foreign sources of oil.

The above trends have left more than a significant imprint on the military-economic and political development of both Europe and the world as a whole. And oil, this genuine “blood of war” due to its economic and military significance, was and will be one of the primary objects of armed conflicts between the leading states of the world.
Articles from this series:
Blood War 100 years ago. Part of 1

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  1. Albatroz
    Albatroz 7 December 2018 08: 11
    Oil companies only pursue their own interests - even when they run counter to national ones. Historical fact and sad experience.
    And patterns allow us to draw very interesting parallels ...
    1. Hunghuz
      Hunghuz 7 December 2018 08: 21
      Iron fact in the world of the Galaxy
      1. Brutan
        Brutan 7 December 2018 09: 25
        Profit for them is the main thing, what is already here. And in general, the oligarchy, and even more so the oil magnates - international beasts, sided interests - the pocket is more important
        1. Machito
          Machito 8 December 2018 09: 37
          Quote: Brutan
          Profit for them is the main thing, what is already here. And in general, the oligarchy, and even more so the oil magnates - international beasts, sided interests - the pocket is more important

          However, World Wars were essentially battles for gasoline.
  2. Hunghuz
    Hunghuz 7 December 2018 08: 24
    Learned a lot
    About the battle between the American and British oil monopolies (although it would seem allies), about the patterns after the First and Second World Wars, punitive agreements and.
    Thank you for the article!
    1. Hunghuz
      Hunghuz 7 December 2018 08: 25
      Cartel agreements, pancake appliances
      1. Evdokim
        Evdokim 7 December 2018 11: 23
        And these cartel agreements are essentially punitive. Whoever owns oil owns finances, and then you don’t have to think a lot of mind. hi
    2. Brutan
      Brutan 7 December 2018 09: 23
      I join a colleague hi
  3. Black joe
    Black joe 7 December 2018 08: 42
    Americans cherished their oil, but everywhere
    Good tactics) Tested a century
    And the competitors have subsided
    1. Brutan
      Brutan 7 December 2018 09: 23
      And the Saudis were trampled at that time, the best friends of some regimes, and not only the American
  4. BAI
    BAI 7 December 2018 09: 34
    If oil is the blood of war, and the author is still considering the 40s, we had to remember:
    1.Operation "Spear" (1949)
    From a letter from Ribentrop to Stalin (October 1940):
    “... the Soviet oil center in Baku and the oil port in Batumi would undoubtedly have already been a victim of British assassination attempts this year if the defeat of France and the expulsion of the English army from Europe did not break the English spirit of attack as such and put an end to all these frauds ".

    2. And the operation to destroy Baku, if captured by the Germans:
    Churchill (1942):
    “I see no reason to assert that the occupation of Baku by the Germans will be averted, or that the Russians will surely destroy their oil fields ... The only thing we can do is to deploy 4-5 squadrons of heavy bombers in Northern Iran to assist the Russians in defense Caucasus, if, of course, it is possible; in the worst case, we could bomb the oil fields of Baku and try to set fire to this area ... "

    3. And of course - how Hitler held on to the oil fields of Romania to the end.
    1. Black joe
      Black joe 7 December 2018 09: 44
      If oil is the blood of war, and the author is still considering the 40s, we had to remember:
      1.Operation "Spear" (1949)

      You can remember a lot - for the topic is very extensive. If you read carefully, we are talking about general laws minus the USSR. But in the previous article it was said about WWII and about the merits of the Red Army in this regard. Naturally in general
      And of course - how Hitler held on to the oil fields of Romania to the end.

      about the oil industry of Romania - see the previous part.
      By the way, since they are clever, can you develop a theme?
      1. Hunghuz
        Hunghuz 7 December 2018 09: 49
        Do you think they are reading, are these Bai talking about?
        It’s like in a joke about fleas, when a student knows one thing — he is on this subject and jumps. All about fleas) Therefore, when there is nothing to speculate and it is a matter of facts, their presence is sharply reduced.
        In the last part, the bro-cat wanted to mess with the oil heating of the boilers, but he does not know in which years the little sytty came out. So a little crap))
        1. Black joe
          Black joe 7 December 2018 09: 52
          Now the Internet is probably shoveling hard
          To shine laughing
      2. BAI
        BAI 7 December 2018 10: 37
        By the way, since they are clever, can you develop a theme?

        And what do you want to learn new?
        Maybe this?
        Molotov's meeting with Hitler:
        Molotov: “You gave guarantees to Romania, which causes us discontent. Are they directed against us? ”
        Hitler: "They are directed against anyone who attacks Romania."
        1. Black joe
          Black joe 7 December 2018 10: 47
          In the article, develop what is there to shake the air
          I personally do not want to know anything, and so I know
    2. BAI
      BAI 7 December 2018 10: 44
      1.Operation "Spear" (1949)
      - here a typo - 1940 g - as in the letter.
  5. migrant
    migrant 7 December 2018 13: 41
    Very informative article. The main trends in world oil production and marketing are noted.
  6. Decimam
    Decimam 7 December 2018 15: 10
    The author paid much attention to the struggle of the Anglo-American monopolies over oil sources and the enslaving conditions for the exploitation of the natives in whose territory the oil fields are concentrated.
    However, the author somehow bypassed the question that the conditions for the exploitation of deposits do not depend on monopolies at all. Everyone knows the UAE, in whose territory 10% of the world's oil reserves are concentrated (this is at 83 thousand sq. Km. Of territory). The administrative structure of the UAE is based on the right of each emirate to manage hydrocarbon reserves on its territory.
    Until 1966, Bedouins who traded dates lived in the UAE. But in 1966 they found oil. In 1969, the first batch of “black gold” was sent for export - 180 thousand barrels.
    Further. From 1968 to 2003, the population of the UAE increased by almost 20 times. 85% of the workforce in the Emirates are foreigners. But according to the federal law of the UAE, at least 51% of the share capital of any commercial company established in the country must belong to residents of the Emirates. Indigenous people work in government agencies, in the judiciary, and are on the boards of directors of international economic and financial organizations. All foreigners are engaged in construction and services.
    Out of 9,16 million people in the UAE, 1,74 million (19%) are UAE citizens, and 7,42 million (81%) are foreigners.
    All UAE citizens enjoy free medical care, are entitled to free primary, secondary and higher education.
    Emirate students can choose from 71 UAE higher education institutions or receive a grant to study at any university in the world. Abu Dhabi has branches of New York University, the Sorbonne. In neighboring Al Ain, 14 students study at UAE State University. Branches of the University of Exeter and the University of Michigan have opened in Dubai. Lectures in Arabic and English, many subjects are taught by professors invited from Europe and the USA.
    Upon marriage, UAE citizens are provided with cottages and land for free.
    16 dirhams ($ 000) is the salary of an Emirate teacher in a public school. For comparison: the average teacher salary in the United States is ~ $ 4360, in the Central Federal District of Russia - 3667 39 rubles (~ $ 609).
    Those who wish can find on the network. So it’s not a matter of monopolies. It's about the local oligarchic gopot.
    1. Hunghuz
      Hunghuz 7 December 2018 16: 10
      And why do you think that the author bypassed something there)
      The article is devoted to the first half of the 1th century, the curius, when the UAE did not yet exist, but there was a British protectorate.
      And again, we run into a struggle between the British and American monopolies)) And the operating conditions in the territories of the protectorate depend on the legislation of the metropolises - that is, just the same on the monopolies
      Everything else in your huge post (incl. For some reason, even modern teacher salaries) is just a Wikipedia guide for a tourist)))
      1. Decimam
        Decimam 7 December 2018 16: 32
        And why do you think that your opinion about my post is interesting to me? They could write briefly that they poked a minus. Your horizons are known to me.
        1. Hunghuz
          Hunghuz 7 December 2018 19: 19
          And I didn’t bring my opinion to you in relation to your post.
          He pointed out errors in your post - but not for you, but for those who read comments
          1. Albatroz
            Albatroz 7 December 2018 20: 06
            But I did not understand (this is to the gigpost above and to the one below) - this Decimam, distorting time periods (speaking about the UAE when they were not yet) and thoughtfully and mysteriously reporting the Bedouin salary and the murmur known only to him - or something like that demonstrates his horizons ?? But the latter is clearly below the plinth. And just those who have it below the plinth - are accused of lacking the horizons of others. The usual reception in general)