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1965

Abdallah al-Tariqi, 'The Nationalization of the Arab Oil Industry: A National Necessity' (Excerpts)

The full version of the text excerpts included here was reprinted in a collection of the works of its author, Abdallah al-Tariqi (1919-1997), who had first published it in its Arabic original in the journal Dirasat ‘Arabiyya and before held it as a speech, in 1965 at the Fifth Arab Oil Conference in Cairo.

Al-Tariqi was born in what would become Saudi Arabia. He was educated at Fuad I (now Cairo) University Egypt (B.S.) and the University of Texas (M.A. in petroleum engineering and geology), and trained for another year in the US oil industry before returning to Saudi Arabia in 1953. The next year, he became Director-General of Petroleum and Mineral Affairs in the Ministry of Finance and National Economy. As such, he was inter alia responsible for relations with the then only oil company in Saudi Arabia, a conglomerate of four US firms called the Arabian American Oil Company (ARAMCO), which had received a concession in 1933, first found oil in 1938, and began extraction from the end of World War II. While taken by the anti-imperialist stance and policies of Egypt President Gamal Abdel Nasser (1918-1970), al-Tariqi in the 1950s was a reformist modernizer. He accepted the royal Saudi political system and the kingdom’s relationship with the United States. But he was determined to greatly improve Saudi oil income and negotiation position vis-à-vis the US company, often upholding as a model Venezuela’s Creole Petroleum Company.

In parallel, he worked for more coordination between oil producing countries, to improve their position vis-à-vis Western companies. In 1957, he helped bring about a Saudi-Iranian oil information exchange agreement. In 1959, he was a driving force behind the First Arab Oil Conference, in Cairo. And there, he, the Venezuelan Minister of Mines and Hydrocarbons Juan Pablo Pérez Alfonzo (1903-1979), and a Kuwaiti, Iraqi, and Iranian delegate concluded a momentous agreement. Though informal, it “marked the first real steps toward creating a common front against the oil companies,” as Daniel Yergin put it in his classic work The Prize (1991). The agreement laid the foundation for the birth of the Organization of Oil Producing Countries (OPEC) in 1960 in Baghdad, analyzed by Giuliano Garavini in The Rise and Fall of OPEC in the 20th Century (2019).

In 1960, too, al-Tariqi became Minister of Petroleum and Mineral Affairs. But in 1962, a clash within the Saudi ruling elite cost him both his post and his ARAMCO board membership. He left Saudi Arabia; co-founded an independent oil consultancy in Beirut; and accentuated his view that oil is a global rather than country-by-country issue that needs a united Arab solution vis-à-vis the West. In parallel, his language became more pointed: he now talked about colonialism. And he embraced the nationalization of oil. This had worked in Latin America in the late 1930s when the US government needed its neighbors’ goodwill as clouds of war were gathering over Europe—but it had failed in Iran where a CIA-led coup removed Prime Minister Muhammad Musaddiq (1882-1967) in 1953, scaring Middle Eastern oil officials until the early 1960s

June 10, 1960

Enrico Mattei, 'On the Decolonization of States and of the Economy'

This is the English translation of the translation, into Italian, of a French speech that Enrico Mattei (1906-1962) held in Tunisia in 1960 while negotiating an agreement in his function as the 1953 founder and director of Italy’s Ente Nazionale Idrocarburi (ENI)—a conglomerate that managed Italy’s energy needs and led Italy’s energy foreign policy, pleasing many citizens but displeasing some high-ranking officials.

Already in the 1950s Mattei openly supported independence movements, also French Algeria’s. Moreover, he was a sharp Western critic of the world’s dominant oil companies, British Petroleum (until 1954, Anglo-Iranian Oil Company), Royal Dutch Shell, and the five US firms Standard Oil Company of California, Gulf Oil, Texaco, Standard Oil Company of New Jersey, and Standard Oil Company of New York, who in various combinations enjoyed oil monopolies in Saudi Arabia, Iran, and Iraq. He talked of Anglo-Saxon oil imperialism and in the 1950s coined the moniker the “Seven Sisters”—after the seven Pleiades sisters of Greek mythology—for those companies, leaving out the Compagnie Française des Pétroles that formed part of Iran’s and Iraq’s consortium, too. Unable to break into these two consortia or into the Saudi one, he succeeded to circumvent the Iranian one, which had been midwifed by the US government a year after the 1953 CIA-led coup d’Etat against Prime Minister Muhammad Musaddiq, who in 1951 had nationalized Iran’s oil.

In 1957 Mattei and Iran’s monarch, Muhammad Reza Shah Pahlavi (1919-1980; r. 1941-1979), cut a deal whose profit terms—75-percent for Iran, 25-percent for ENI—undercut the Iranian consortium’s 50-50 terms. The US government did not oppose the deal, hoping it would buoy the shah’s popularity and hence stabilize a Cold War client bordering the Soviet Union. When in 1959 Mattei signed an oil deal with the Soviet Union, he again shocked the consortia and now also Washington: for dealing with the Soviets, and because they sold oil for less than the consortia. (This deal was a contributing factor to a price cut by the large US companies in July 1960, which angered oil producing countries and triggered the birth, in September, of the Organization of the Petroleum Producing Countries, or OPEC, a project discussed from 1959 by Arabs including the Saudi Abdallah al-Tariqi.) In 1958 and 1960, Mattei negotiated deals inter alia with two minor Arab oil producers, Morocco and Tunisia, respectively. Moreover, he entertained contacts with the Algerian Front de Libération Nationale. In 1962 he died in an airplane crash that in 1997 was ruled to have been caused by a bomb—perpetrators unknown.

June 29, 2020

Interview and Discussion with Sir Malcolm Rifkind

Discussion with Sir Malcolm Rifkind, former Defense Secretary and Foreign Secretary of the United Kingdom, about the 1990s and the new relationship that formed after the Cold War.

May 23, 1944

Stalin, Molotov, and Zhukov Meet Marian Spychalski and the People’s Home Counsel (KRN) Delegation at the Kremlin

The People's Home Counsel (KRN) meets with Stalin, Zhukov, and Molotov at the Kremlin to discuss Polish politics and military.

August 24, 1991

National Intelligence Daily for Saturday, 24 August 1991

The CIA’s National Intelligence Daily for 24 August 1991 describes the latest developments in the Soviet Union, Yugoslavia, Cambodia, Lebanon, France, El Salvador, South Africa, China and Iran.

April 4, 2018

Oral History Interview with Jean duPreez

Member of South Africa’s delegation to the 1995 NPT review conference.

August 29, 2017

Oral History Interview with Konrad Scharinger

Deputy head of the nuclear non-proliferation section of the economic department in the German Federal Foreign Office.

March 22, 2017

Oral History Interview with Thomas Graham

Untied States special representative for Arms Control, Non-Proliferation, and Disarmament.

March 24, 2017

Oral History Interview with Robert Einhorn

Member of the US Delegation to the 1995 NPT RevCon

October 15, 1952

Report to V. M. Molotov on Draft Instructions to Cde. Sadchikov, the Soviet Ambassador in Iran

Draft set of instructions for the Soviet Ambassador to Iran, Sadchikov. Indicates several areas for him to pay attention to and report on, specifically Iranian national liberation movements, the "National Front," and plans for nationalizing the oil industry. Also note that he should be especially careful to not appear as if the Soviet Union is taking a stance against Mohammad Mossadegh.

Pagination