The Politics of Oil
(Glossary)
Organization of Petroleum Exporting Countries (OPEC) - The original members --Iraq, Iran, Saudi Arabia, Kuwait and Venezuela– formed OPEC in 1960 to combat the reduction in the price of oil that Standard Oil was willing to impose on exporting countries. OPEC was formed in Baghdad. Other members would join including Qatar, Indonesia and Libya.
The Seven Sisters consist of the largest oil companies including Exxon Corp. (American), Royal Dutch-Shell (Anglo-Dutch), British Petroleum (English), Texaco (American), Socony-Mobil Oil (American) Chevron (American) and La Compagnie Francaise des Pe¢troles (CFP). There have been oil mergers in the interim.
Geopolitics of Oil - Industrial and military powers seek to control critical resources and especially oil. Since ancient times, it has been known that oil existed in North Africa. Leases in northern Algeria were given to the French in 1877. After World War I, the Ottoman Empire was broken up. France administered Syria and Lebanon while Britain, under this League of Nations mandate, was given Iraq, Jordan and Palestine to administer The British controlled Iran and was the guardian of Kuwait.
1920 Mineral Leasing Act - The United States was a spectator but it sought protection for American companies to enjoy similar treatment as European countries. This legislation conditioned foreign investment in U.S. public lands with reciprocal treatment for American companies internationally.
The Participation Agreement - Saudi Arabia and Abu Dhabi signed an agreement which went into effect on January 1, 1973 with Exxon, Atlantic Richfield, British Petroleum, Compagnie Francaise des Pe¢troles, Gulf Oil, Mobil, Partex, Shell, Standard Oil of California and Texaco allowing the producing countries to enjoy a 25 percent share of operations until it reached its stated goal of 51 percent.
Concession Agreement - is a legal instrument that permits companies to conduct oil exploration activities in a defined area of a
foreign territory. This would give the concessionaire control over exploration programs, levels of production and oil prices. Mexico was the first country to challenge the rights of concessionaires. It nationalized its oil industry in 1938.
Suez Crisis of 1956 - This crisis ended any European challenge to United states hegemony over the Middle East. The only major players remaining were the United States and the Soviet Union.
Kyoto Protocol - An environmental regulation that is concerned about climate control. The Soviet Union has ratified the Kyoto Protocol in addition to UAE, Saudi Arabia, Algeria and Kuwait. The Bush Administration is hostile to environmental regulations which may threaten oil demand.
Oil Reserves - Saudi Arabia possesses an estimated 23 percent of the world’s oil reserves but produces only 13 percent of the world supply. Iran boasts of possessing the world’s top oil and gas reserves ranking second in each category.
Resources Nationalism - Sovereign control over natural resources and to remove all vestiges of colonialism colored by control that is foreign, capitalistic and private.
Brief History of Iraq - The British established a monarchy in Iraq in 1925. It was overthrown by a coup in 1958. General Qassim made certain demands on British oil companies. His government was overthrown in 1963. A Ba¢athist coup happened in 1968 and Iraq was governed by the Revolutionary Command Council.
(Glossary)
Organization of Petroleum Exporting Countries (OPEC) - The original members --Iraq, Iran, Saudi Arabia, Kuwait and Venezuela– formed OPEC in 1960 to combat the reduction in the price of oil that Standard Oil was willing to impose on exporting countries. OPEC was formed in Baghdad. Other members would join including Qatar, Indonesia and Libya.
The Seven Sisters consist of the largest oil companies including Exxon Corp. (American), Royal Dutch-Shell (Anglo-Dutch), British Petroleum (English), Texaco (American), Socony-Mobil Oil (American) Chevron (American) and La Compagnie Francaise des Pe¢troles (CFP). There have been oil mergers in the interim.
Geopolitics of Oil - Industrial and military powers seek to control critical resources and especially oil. Since ancient times, it has been known that oil existed in North Africa. Leases in northern Algeria were given to the French in 1877. After World War I, the Ottoman Empire was broken up. France administered Syria and Lebanon while Britain, under this League of Nations mandate, was given Iraq, Jordan and Palestine to administer The British controlled Iran and was the guardian of Kuwait.
1920 Mineral Leasing Act - The United States was a spectator but it sought protection for American companies to enjoy similar treatment as European countries. This legislation conditioned foreign investment in U.S. public lands with reciprocal treatment for American companies internationally.
The Participation Agreement - Saudi Arabia and Abu Dhabi signed an agreement which went into effect on January 1, 1973 with Exxon, Atlantic Richfield, British Petroleum, Compagnie Francaise des Pe¢troles, Gulf Oil, Mobil, Partex, Shell, Standard Oil of California and Texaco allowing the producing countries to enjoy a 25 percent share of operations until it reached its stated goal of 51 percent.
Concession Agreement - is a legal instrument that permits companies to conduct oil exploration activities in a defined area of a
foreign territory. This would give the concessionaire control over exploration programs, levels of production and oil prices. Mexico was the first country to challenge the rights of concessionaires. It nationalized its oil industry in 1938.
Suez Crisis of 1956 - This crisis ended any European challenge to United states hegemony over the Middle East. The only major players remaining were the United States and the Soviet Union.
Kyoto Protocol - An environmental regulation that is concerned about climate control. The Soviet Union has ratified the Kyoto Protocol in addition to UAE, Saudi Arabia, Algeria and Kuwait. The Bush Administration is hostile to environmental regulations which may threaten oil demand.
Oil Reserves - Saudi Arabia possesses an estimated 23 percent of the world’s oil reserves but produces only 13 percent of the world supply. Iran boasts of possessing the world’s top oil and gas reserves ranking second in each category.
Resources Nationalism - Sovereign control over natural resources and to remove all vestiges of colonialism colored by control that is foreign, capitalistic and private.
Brief History of Iraq - The British established a monarchy in Iraq in 1925. It was overthrown by a coup in 1958. General Qassim made certain demands on British oil companies. His government was overthrown in 1963. A Ba¢athist coup happened in 1968 and Iraq was governed by the Revolutionary Command Council.
posted by Attorney Alton Maddox at 6:51 AM
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