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in the USA preserved stockholders' wealth and incentive to consolidate exploration of international frontiers beyond the reach of US federal concessions during WWI.

"Seven Sisters": Dept of State | The 1928 Red Line Agreement

The 1928 Group Agreement (better known as the "Red Line" Agreement) was a deal struck between several American, British, and French oil companies concerning the oil resources within territories that formerly comprised the Ottoman Empire within the Middle East. The origins of the Red Line Agreement can be traced back to the initial formation of the Turkish Petroleum Company (TPC) in 1912.

The general charge concerning the period from 1870 to 1882 was as follows: 'That during said first period the said individual defendants, in connection with the Standard Oil Company of Ohio, purchased and obtained interests through stock ownership and otherwise in, and entered into agreements with, various persons, firms, corporations, and limited partnerships engaged in purchasing, shipping, refining, and selling petroleum and its products among the various states, for the purpose of fixing the price of crude and refined oil and the products thereof, limiting the production thereof, and controlling the transportation therein, and thereby restraining trade and commerce among the several states, and monopolizing the said commerce.' ...

In order to discourage the Europeans from treating American oil companies unfairly, the U.S. Congress passed the Mineral Leasing Act in February of 1920, which denied drilling rights on publicly-owned land in the United States to any foreign company whose parent government discriminated against American businesses. Neither the British nor the U.S. Government, however, wished to jeopardize relations over the issue. In 1928, the TPC was reorganized to include the Near East Development Corporation, an American oil syndicate that included Jersey Standard, Socony, Gulf Oil, the Pan-American Petroleum and Transport Company, and Atlantic Refining (later Arco). Jersey Standard and Socony later assumed total control over the NEDC after they bought out their partners during the 1930s.

Signing the Red Line Agreement

On July 31, 1928, following the discovery of an immense oil field in Iraq and TPC negotiating regarding the division of crude oil output between the partners, representatives from the Anglo-Persian, Royal Dutch/Shell, the Compagnie Française des Pétroles (CFP, later Total), and the Near East Development Corporation signed the Red Line Agreement in Ostend, Belgium...

by Cat on Tue Aug 9th, 2022 at 06:25:05 PM EST
China And Saudi Arabia Intensify Energy Cooperation With Critical Deal, 9 Aug book promo
The signing last week of a multi-pronged memorandum of understanding (MoU) between the Saudi Arabian Oil Company - formerly the Arabian American Oil Company - (Aramco) and the China Petroleum & Chemical Corporation (Sinopec) is a critical step in China's ongoing strategy to secure Saudi Arabia as a client state. ...The scale and scope of the MoU is enormous, covering deep and broad co-operation in refining and petrochemical integration, engineering, procurement and construction, oilfield services, upstream and downstream technologies, carbon capture and hydrogen processes. Crucially for China's long-term plans in Saudi Arabia, it also covers opportunities for the construction of a huge manufacturing hub in King Salman Energy Park that will involve the ongoing, on-the-ground presence on Saudi Arabian soil of significant numbers of Chinese personnel: not just those directly related to the oil, gas, petrochemicals, and other hydrocarbons activities, but also a small army of security personnel to ensure the safety of China's investments.
The Embargo That Must Not be Named
The basis of this enduring relationship between the U.S. and Saudi Arabia, as analysed in depth in my new book on the global oil markets, had been struck back in 1945 at a meeting on 14 February 1945 between the then-U.S. President Franklin D. Roosevelt and the Saudi King at the time, Abdulaziz. The first face-to-face contact between the two, this landmark meeting was held on board the U.S. Navy cruiser Quincy in the Great Bitter Lake segment of the Suez Canal, and the deal that they agreed - which had been the basis for all of the U.S.'s Middle East policy up until very recently - was this: the U.S. would receive all of the oil supplies it needed for as long as Saudi had oil in place, in return for which the US would guarantee the security both of the ruling House of Saud and, by extension, of Saudi Arabia.

The landmark deal survived the 1973 ["]Oil Crisis["] - in which the Saudi-led OPEC placed an embargo on [OPEC] oil exports to ["]various countries["] that had continued to supply arms to Israel during the Yom Kippur War against it and ["]a coalition of Arab states["] led by Egypt and Syria - although the U.S. had little choice but to do that, given the dearth of its own alternative oil supply options at that time.

post-Permian petro-dollar production boom
China used Russia's [2014-2016 Oil Price War leverage of] Saudi Arabia and OPEC to deploy its own strategy to accrete and exploit power over the Middle East's huge oil and gas reserves, with the key turning point for Beijing being its own rescue act for Saudi Arabia in the middle of 2017. As also analysed in depth in my new book on the global oil markets, it was at that point that the then-newly appointed Crown Prince, Mohammed bin Salman (MbS), was facing a huge problem at a very vulnerable stage in his rise to power. ... It was precisely when MbS was at his weakest that China stepped in and offered to buy the entire 5 percent stake in Aramco for a price that would guarantee the valuation for the whole company of the required US$2 trillion. Crucially as well, this would all be done through a private placement of the entire 5 percent share block in Aramco, which meant that none of the details surrounding the deal would ever get out publicly. As it transpired, several senior Saudis at the time - opponents to MbS's ascension to power but still powerful voices in the Kingdom at that point - opposed the deal on the basis that it would make Saudi Arabia beholden to China. Although the deal did not go ahead, the subsequent trajectory of China-Saudi relations would suggest that MbS has never forgotten Beijing's willingness to bail him out of any trouble in which he might find himself. ...
Formosa plans to sell more very low sulphur fuel oil (VLSFO) due to higher margins, 7 Aug

archived Ruble and Yuan in Ruble and Rupee, where the NEW money is headed, 'Cancer Alley'

by Cat on Wed Aug 10th, 2022 at 12:59:20 AM EST
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