Aramco, the United States, and Saudi Arabia

Aramco, the United States, and Saudi Arabia: A Study of the Dynamics of Foreign Oil Policy, 1922-1950

IRVINE H. ANDERSON
Copyright Date: 1981
Pages: 276
https://www.jstor.org/stable/j.ctt7zvrdz
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    Aramco, the United States, and Saudi Arabia
    Book Description:

    Irvine Anderson carefully reconstructs the years between 1933 and 1950 and provides a case study of the evolution of U.S. foreign oil policy and of the complex relationships between the U.S. government and the business world.

    Originally published in 1987.

    ThePrinceton Legacy Libraryuses the latest print-on-demand technology to again make available previously out-of-print books from the distinguished backlist of Princeton University Press. These paperback editions preserve the original texts of these important books while presenting them in durable paperback editions. The goal of the Princeton Legacy Library is to vastly increase access to the rich scholarly heritage found in the thousands of books published by Princeton University Press since its founding in 1905.

    eISBN: 978-1-4008-5314-4
    Subjects: Economics

Table of Contents

  1. Front Matter
    (pp. i-vi)
  2. Table of Contents
    (pp. vii-viii)
  3. PREFACE
    (pp. ix-xiii)
    Irvine H. Anderson
  4. LIST OF TABLES
    (pp. xiv-xiv)
  5. ABBREVIATIONS
    (pp. xv-2)
  6. I IN THE MIDDLE EASTERN LABYRINTH
    (pp. 3-34)

    Saudi arabia first entered the American consciousness as a place of strategic importance in 1943, in the midst of World War II. As the scope and complexity of modern warfare gradually became apparent, planners in the Departments of the Navy, State, and the Interior took increasing note of two developments. First, a mid-war dip in the rate of annual domestic discoveries of oil below the rate of annual domestic production cast serious doubt on the sufficiency of American reserves in the years ahead.¹ And second, reports began to circulate of vast untapped reserves in Saudi Arabia in a concession held...

  7. II STRATEGIC PLANNERS
    (pp. 35-67)

    Significant shifts in national power relationships seldom occur instantaneously. In retrospect, their beginning can be traced far back in time, and considerable concern over the implications frequently can be found among those closest to and responsible for the area at the time. This early interest often goes unnoticed by the general public because of more pressing contemporary issues, and when the potential problem matures into a real one there is a great hue and cry to find those responsible for “letting this happen.” In retrospect, however, it will usually be found that there was inadequate time, talent, and resources to...

  8. III DIPLOMATS
    (pp. 68-107)

    The idea of negotiating an understanding with the British on Middle Eastern oil had been gestating within the Department of State for well over a year before it was advanced as a serious alternative to Ickes’ stock purchase plan.¹ As will be seen, the diplomatic solution was based on a carefully thought-out assessment of the problem that might have carried the day had it not run afoul of bureaucratic infighting over who would control American oil policy. The core of the proposal was a binational governmental advisory commission to oversee production and marketing of Middle Eastern oil in order to...

  9. IV FIELD PERSONNEL
    (pp. 108-123)

    While all of this argument over oil policy had been under way in Washington, a new entity had emerged in Saudi Arabia and begun to take its place as an interest to be reckoned with in the decision-making process. The team of Socal geologists, petroleum engineers, and drilling crews that had originally opened up the concession had evolved during the war years into the Arabian American Oil Company—a highly production-oriented organization with a talent for operating in a radically different cultural environment than that of the United States. ‘Abd al-‘Aziz’ deep interest in a larger income and modernization within...

  10. V AND CORPORATE OFFICERS
    (pp. 124-159)

    Returning to Washington and January of 1945, we find that withdrawal of the Anglo-American Agreement from the Senate set in motion a major realignment of positions and a full-scale rethinking of policy toward Saudi oil. The objectives of the Departments of State and the Navy remained unchanged and firm as ever: Middle Eastern production in general and Saudi production in particular should be increased as rapidly as possible to decrease the drain on Western Hemisphere reserves, and all necessary measures should be taken to keep the Saudi concession firmly in American hands. But, as it became increasingly apparent that a...

  11. VI FORM A COALITION
    (pp. 160-197)

    While corporate officers had been negotiating a merger in the Middle East, the world in which they lived had changed radically.¹ The total defeat of Germany and Japan, the devastation of France and Italy, and the exhaustion of Britain had left the United States and the Soviet Union as the surviving major world powers. The United States had emerged from the war economically powerful and in possession of the atomic bomb, but with its armed forces in the process of precipitous demobilization. Its ideological viewpoint was that of liberal democracy and modified laissez-faire economics, and its leadership believed that for...

  12. CONCLUSIONS
    (pp. 198-207)

    Before any broad conclusions are drawn from the story just recounted, comment is in order on several lesser points. The first concerns the original Socal concession in Saudi Arabia and is an excellent example of Anderson’s law of perversity: That if things can turn out exactly opposite of what was originally intended, they probably will. The case in point, of course, is the Red Line Agreement of 1928. The clause in the agreement prohibiting the partners from operating independently within the confines of the old Ottoman Empire was intended by Gulbenkian and the French to coopt the Americans and avoid...

  13. APPENDIX A METHODOLOGICAL NOTE
    (pp. 208-215)
  14. APPENDIX B TEXTS OF ANGLO-AMERICAN PETROLEUM AGREEMENT, 1943, 1944, AND 1945
    (pp. 216-228)
  15. APPENDIX C CRUDE POSITIONS OF JERSEY, SOCONY-VACUUM, SOCAL, AND THE TEXAS COMPANY, 1933-1950
    (pp. 229-234)
  16. ESSAY ON SOURCES
    (pp. 235-236)
  17. SELECTED BIBLIOGRAPHY
    (pp. 237-252)
  18. INDEX
    (pp. 253-259)
  19. Back Matter
    (pp. 260-260)