The Peace on The Horizon - 70 Years after The World War 2 in the Middle East (23)

(Japanese Version)

(Arabic Version)



Chapter 3: The grace of Allah – Oil boom


3-1(23)　The dawn of oil industries in the Middle East



People of Arab oil-producing countries often say that Oil is the grace of Allah. They genuinely appreciate Allah who gave them rich oil wealth. It also means the superiority to other groups having no oil. Indeed, many of the world's oil-producing countries are Islamic ones. Iraq, Saudi Arabia. Algeria, Libya and other MENA (Middle East and North Africa) oil producing countries are Arab ethnic groups. Their belief is Islam. Iran is also Islamic state. In Nigeria south of the Sahara, majority is Muslims.  Indonesia, an oil producing country in Southeast Asia, is a country of Islam, too. Islamic countries account for nearly half of the world's crude oil production. Judging from oil reserves, they have the much larger share. It doesn’t exaggerate to say that oil is the grace of Allah.



There is no relationship between oil and Islam. It is coincidence by chance. Oil Had been produced beneath the ground a few hundred million years ago. On the other hand, Islam was born in 7^th century. Therefore, it is very curious to connect oil and Islam together. Muslims believe that everything in this world is the work of Allah. Allah made oil for the Muslims under their soil in ancient times. Controversy between scientific atheism and religion is an eternal debate.

At the end of the 19th century, gasoline and diesel engines were invented that used petroleum as fuel instead of the coal-fired steam engine. This technology revolutionized the transportation sector and rapidly spread for military vehicles as tanks and warships. As a result, the demand for oil has sharply increased. Oilfields have been discovered around the world. In 1908 Persia (Iran) discovered the oil. Oil discoveries in the Middle East were followed one after another; Iraq in 1928, Kuwait in 1938 and Saudi Arabia in 1940. Oilfields that spread from Iran to Iraq, Kuwait, Saudi Arabia and Abu Dhabi were called "oil belts".

It was European and American oil companies that worked on the development of the oil belts. Among them, 7 companies called "Seven Sisters" showed a great performance. They were five US companies, one British company and one UK-Dutch company, i.e. Standard Oil Company of New Jersey (Esso), Standard Oil Company of New York (Mobil), Standard Oil Company of California (Socal), Gulf Oil, Texaco, Anglo Iranian Oil Company (BP) and Royal Dutch Shell Plc (Shell) of UK/Dutch consortium. The first three companies bearing the name of “Standard” were born after the split of Standard Oil Company which were founded by John D. Rockefeller, Sr and divided by the antitrust law, Esso and Mobil subsequently merged into ExxonMobil. Socal, Gulf Oil and Texaco also merged and is now Chevron.



Anglo Iranian Oil (current BP) led oil development in the Middle East. BP was established as a state-run company. During the World War I, Sir Winston Churchill, then Navy Minister and later Prime Minister, put the priority for oil development to secure the fuel of ships. BP acquired development rights in Iran and furthermore got Kirkuk oil fields in Iraq and Burgan oil fields in Kuwait.

 The latecomer US companies approached Saudi Arabia to acquire development rights. They discovered the world's largest Ghawar oilfield in the eastern part of the Arabian Peninsula, and further discovered Safaniya oilfield off the coast of the Peninsula. Four US companies of Esso, Mobil, Socal and Texaco set up the Arabian American Oil Company (so-called Aramco), and monopolized oil production in Saudi Arabia. Seven Sisters established the overwhelming presence in the oil belt of the Middle East. They dominated world oil industry.

There was a person in Iran who confronted with Seven Sisters. His name was Mohammad Mossadegh. He became prime minister in 1951 and nationalized the oil company owned by Anglo Iranian Oil. As a counter measure, Seven Sisters kicked out the Iranian crude oil from the international market. US government, which disliked nationalist Mossadegh, supported Seven Sisters behind the scenes. Prime Minister Mossadegh was fell down. Reza Shah Pahlavi again gripped the power. After that Iran and US started the honeymoon relationship.



It took nine years that oil-producing countries challenged against Seven Sisters. They organized the OPEC (Organization of Petroleum Exporting Countries) in 1960. And then after 28 years, Iran and the United States severed diplomatic ties when Ayatollah Khomeini took the Iranian Revolution in 1979.



(To be continued ----)

By Areha Kazuya

E-mail: areha_kazuya@jcom.home.ne.jp

Home Page: OCIN INITIATIVE

(Table of contents)