Sunday, January 02, 2005

Nationalization of Iran’s oil and triangle of U.S., Britain, and Cartel

Nationalization of Iran�s oil and triangle of U.S., Britain, and Cartel: "Nationalization of Iran’s oil and triangle of U.S., Britain, and Cartel
TEHRAN, Jan. 1 (MNA) -- This article aims to justify why the United States of America, Italy and a number of Western states as well as several international oil companies were opposing the nationalization of oil industry in Iran, taking a look at general situation of oil industry worldwide.
While the oil industry was about to be nationalized, over half (51 percent) of the oil output in the Persian Gulf was owned by the British Oil Company only. The other half of the output was exploited in favor of other foreign companies such as New Jersey Standard Oil Off Co. (Saudi Arabia, Iraq, and Qatar), Vacuum Socony Co. (Saudi Arabia, Iraq, and Qatar), California Standard Oil Off Co., (Saudi Arabia and Bahrain), Gulf Co. (Kuwait), Royal Dutch Shell Co. (Iraq and Qatar), France Oil Co. (Iraq and Qatar), Texas Co. (Saudi Arabia and Bahrain).

So the entire interests of oil sector in the Persian Gulf went to the eight so-called international oil cartel companies only which had come to an agreement in 1928 to act coordinately in exploitation and sales of oil in the global market in an attempt to keep the supply and demand balanced and in favor of their own interests.

Cartel members used to monopolize all the oil refineries located in the Persian Gulf region and the sale of oil in the Middle East and even the whole globe with an exception of East Block.

When oil industry was nationalized, Iran was the biggest producer in the Middle East and the fourth top producer in the world after U.S., Venezuela, and the Soviet Union. Iran used to produce one third of the entire oil produced in the Middle East – 32 million tons of the total 90 million tons. More importantly, Iran held the hugest oil refinery worldwide that refined some 20 million tons of oil annually. The country provided 90 percent of the entire crude oil, 40 percent of kerosene, and 100 percent of gasoline required in the Western Europe at that time.

Early in 1951, a report released by CIA underlining that the economy of the Western Europe especially Britain that holds the majority of Iran’s oil would be seriously damaged if Abadan refinery come out of control of the Europe. The report said that Western Europe should pay 700 million dollars per annum extra if it loses Iran’s oil. So Britain was serious to stop nationalization process of oil industry in Iran.

Meanwhile, international oil companies (including the so-called sister American oil companies of New Jersey Standard Oil Off, Vacuum Socony, California Standard Oil Off, Gulf, and Texas) that were based in the U.S. disagreed with nationalization of Iran’s oil.

So, the companies force the American and British government to bring Iran’s government under pressure by imposing sanctions on oil industry in the country.

British media started a propaganda campaign against Iran condemning it of stealing natural resources that is not considered national.

In the meantime, the U.S. government united with Britain since Iran was a strategic place for the U.S. over the cold war.

In the past, it was easier for the superpowers to take control of the energy resources. Today it is not. It costs so high to take control of these resources – take Iraq as an example.

Middle East has always been a troubled area, because of its vast oil and gas reserves. In the world tomorrow the powerful nations will be those who possess energy. This is why the United States and its allies have come to the region like an octopus to exercise far-reaching control. The Middle East countries should think twice before signing any energy contracts with them."

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