ANIEL YERGI Tai iiithop Lieu nf Chat mnmn Luong PFiP.F anil nnanthnp nf FHIFRBY FII TURF $27.50 The Prize In the grand tradition of epic storytelling, The Prize tells the panoramic history of oil—and the struggle for wealth and power that has always surrounded oil It is a struggle that has shaken the world economy, dictated the outcome of wars, and transformed the destiny of men and nations The Prize is as much a history of the modern world as of the oil industry itself, for oil has shaped the politics of the twentieth century and has profoundly changed the way we lead our daily lives The canvas is enormous—from the drilling of the first well in Pennsylvania through two great world wars to the Iraqi invasion of Kuwait The Prize reveals how and why oil has become the largest industry in the world, a game of huge risks and monumental rewards Oil has played a critical role in world events, from Japan's attack on Pearl Harbor and Hitler's invasion of Russia to the Suez crisis and the Yom Kippur War It has propelled the once poor nations of the Middle East into positions of unprecedented world power And even now it is fueling the heated debate over energy needs versus environmental protection With compelling narrative sweep, The Prize chronicles the dramatic and decisive events in the history of oil It is peopled by a vividly portrayed gallery of characters that make it a fasci nating story—not only the wildcatters, rogues, and oil tycoons, but also the politicians and heads of state The cast extends from Dad Joiner and Doc Lloyd to John D Rockefeller and Calouste Gulbenkian, and from Winston Churchill and Ibn Saud to George Bush, the oil man who became President, and Saddam Hussein It is a momentous story that needed to be told, and no one could tell it better than Daniel Yergin Not only one of the leading authorities on the world oil industry and inter national politics, Yergin is also a master storyteller whom Newsweek described as "one of those rare historians who can bring the past to life on the page." He brings to his new book an expert's grasp of world events and a novelist's— indeed, a psychologist's—gift for understanding human character After seven years of painstaking research and with unparalleled access to the sources, Daniel Yergin has written the definitive work on the subject of oil The Prize is a book of extraordinary breadth, riveting excitement— and great importance It may well be described as the story of the twentieth century "A fascinating history of an industry in which company strategy and national policy have conspired to trans form the world economy." —Michael E Porter, author of Competitive Strategy, Professor, Harvard Business School "Oil, money, and power are the forces that drive Yergin's timely and compelling book The destiny of Hydrocarbon Man is his overarching theme." —Justin Kaplan, National Book Award and Pulitizer Prize winner in Biography About the Author Daniel Yergin is one of the world's leading authorities on world affairs and the oil business His prize-winning book Shattered Peace has become a classic history of the origins of the Cold War He is coauthor of Energy Future: Report of the Energy Project at the Harvard Business School, a semi nal work on energy policy that was a best-seller in the United States, Europe, and Japan Yergin is president of Cambridge Energy Research Associates, one of the world's leading energy consulting firms He was previously a Lecturer at the Harvard Busi ness School and the John F Kennedy School of Govern ment at Harvard University He received a B A from Yale University and a Ph.D from Cambridge University, where he was a Marshall Scholar Jacket design copyright © 1990 by Robert Anthony, Inc Author photograph by Isaiah Wyner Advance praise for The Prize " The Prize is a brilliantly written history of the black gold that has come to command our century Daniel Yergin has brought great learning and acute judgments to a narrative that is irresistible in its epic sweep and rich in historical insight Peopled with an extraordinary cast of heroes and villains, it has the dynamism and vividness of a gripping novel and the wisdom of an enduring history." —Simon Schama author of Citizens: A Chronicle of the French Revolution "Daniel Yergin has provided a masterly narrative of the long sweep of oil history and the critical role of oil in the grand and not-so-grand strategies of nations The Prize portrays the interweaving of national and corporate interests, the conflicts and stratagems, the miscalcu lations, the follies, and the ironies Unquestionably, The Prize is the most comprehensive and detailed treatment of the century-plus age of oil.** —James Schlesinger, Former U.S Secretary of Defense and U.S Secretary of Energy "This is narrative history at its finest—written in a grand and sweeping style with dramatic arid compelling characters and events The Prize is at once a history of oil, of theforcesthat have shaped the modern world, and a work of literature.** —Doris Kearns Goodwin, author of The Fitzge raids and the Kennedys "The Prize provides a profound understanding of global business in the twentieth century and the humanforcesthat have shaped it Daniel Yergin dramatically captures the dynamic interaction of business, politics, society, and technology As brilliant in its insights as in its writing style, The Prize is a towering achievement.** —Theodore Levin, Professor, Harvard Business School, author of The Marketing Imagination "Dan Yergin lucidly and with grace explores the dynamics of the global business that has helped shape the modern economy and fueled the economic growth on which we have come to depend.** —Paul A Samuelson, Nobel Laureate in Economics "Daniel Yergin has brilliantly produced a roadmap that shows us where we*ve been and where we're going as the world heads into the uncertain landscape of the 1990s The Prize should be read by everyone who wants to know why nations struggle over the control of oil resources." —John Chancellor NBC News ISBN D-b71-502Mfl-M 0ni275D B o o k s by D a n i e l Y e r g i n Author Shattered Peace: Origins of the Cold War Coauthor Energy Future Global Insecurity DANIEL YERGIN THE EPIC QUEST FOR OIL, MONEY, AND POWER S I M O N New York London & Toronto S C H U S T E R Sydney Tokyo Singapore Simon & Schuster Simon & Schuster Building Rockefeller Center 1230 Avenue of the Americas New York, New York 10020 Copyright © 1991 by Daniel Yergin All rights reserved including the right of reproduction in whole or in part in any form SIMON & SCHUSTER and colophon are registered trademarks of Simon & Schuster Designed by Irving Perkins Associates Manufactured in the United States of America 10 Library of Congress Cataloging in Publication Data Yergin, Daniel The prize : the epic quest for oil, money, and power I Daniel Yergin p cm Includes bibliographical references and index Petroleum industry and trade—Political aspects—History—20th century Petroleum industry and trade—Military aspects—History—20th century World War, 1914-1918—Causes World War, 1939-1945—Causes World politics—20th century I Title HD9560.6 Y47 1990 338.2' 7282' 0904—dc20 90-47575 ISBN 0-671-50248-4 CIP Lyrics on page 554 © 1962 Carolintone Music Company, Inc Renewed 1990 Used by permission Poem on pages 706-7 from The Intellectual Adventure of Ancient Man by H and H A Frankfort, John A Wilson, and Thorkild Jacobsen, page 142, © 1946 The University of Chicago Used by permission To Angela, Alexander, and Rebecca in Pennsylvania boom, 30, 42 post-deregulation reorganization of, 726730, 734-42 post-World War II deals of, 409-22 profits of, 532, 656-59 public antipathy toward, 44, 199, 658-59, 692 rise in number of, 531-32 royalty payments by, 431-50 Seven Sisters, 503, 776 signs and symbols of, 94, 210, 410, 549550, 656 struggles between exporting countries and, 431-49, 563-87, 588-612 in Texas boom, 86, 91, 92, 93 valuation of, 584, 738 Voluntary Committee of, 464, 482 see also integration, vertical oil companies, independent U.S., 213, 248, 249, 264-65, 372, 535-39, 581, 727, 753 controls opposed by, 179, 221, 224, 399, 425 domestic viewpoint of, 494, 535-38 golden age of, 715 import quotas sought by, 535-38 in Iranian consortium, 477, 503, 533-34 in Neutral Zone, 438 political clout of, 374, 403, 425, 536, 540 Standard Oil and, 54, 72, 78, 80-81, 102, 104, 105 oil conservation, 653-64, 672, 697, 717-18 in France, 654, 655-56 in Japan, 654-55 in U.S., 410, 659-64, 695,718 Oil Consultative Commission, 518 Oil Creek, Pa., 19, 28, 29, 99 "Oil Crisis: This Time the Wolf Is Here, The" (Akins), 591, 599 oil embargoes, see Arab oil embargo (1967); Arab oil embargo (1973) oil import quotas, 535-40 in Eisenhower Administration, 512-13, 515, 536-38, 546, 548, 558, 567, 589, 754 in Johnson Administration, 538-39 in Kennedy Administration, 529 Nixon Administration's abolition of, 589590, 591 oil marketing, 721-24 commodity, 721-26 first system for, 33-34 as futures, 724-26, 749 importance of, 114 "leapfrog" in, 689-91, 697, 703-4, 750 "scramble" in, 689-91, 711, 713 trading and, 685, 688, 697-98, 702, 712, 713, 723-26 "Oil on the Brain," 31-32, 629 oil prices, 745-46 BNOC and, 746 BP's cutting of, 515, 516 components of, 637 discounting of, 514-15, 519-20, 720 domestic regulations and, 255-59, 268, 659, 663 exporting countries' increased control over, 580-87 forecasting of, 670-72 Gulf Coast formula for, 264 in Imperial Russia, 60, 66 Iranian Revolution's effect on, 681-83, 684-91, 696-98, 703-6 Iran-Iraq War and, 711-14 netback system of, 420, 748-49 in 1960s, 529 in 1970s, 592, 615, 622, 625-26 1985 climb and collapse of, 750-52, 755764 1986 negotiations on, 758-61, 763-64 in Oklahoma boom, 213 OPEC's cutting of, 720-21 OPEC's raising of, 606, 615, 622, 625626, 634-36, 646, 685-86, 688-91, 696-97, 703-6, 711-14 in Pennsylvania boom, 30, 33 in post-Civil War era, 39-40, 42, 52, 54 posted vs market, 514-15, 519-20, 528, 591-92 in post-World War I era, 195, 218, 226227 in post-World War II era, 409, 424 in pre-World War I era, 117 quotas' effects on, 539 Shell-Socony war of, 242-43 speculation in, 33-34 spot, 688, 689, 690, 696, 702, 704, 718719, 720 Standard Oil of New Jersey's cutting of, 520-22, 523 Standard Oil's cutting campaigns and, 72, 75, 120, 126, 128, 748 Standard Oil's setting of, 54, 90, 95, 725 in Suez Crisis, 494-95 in Texas booms, 86, 89, 94, 247, 248-52, 254 in World War I, 179 in World War II, 378 oil production figures: in Alaska, 666 in Arab oil embargo (1967), 557-58 in Arab oil embargo (1973), 614 in Bahrain, 299 of Black Giant field, 247 in California boom, 82 in Imperial Russia, 59, 61 in Iran, 464, 678 xix oil production figures (cont.) in Japanese-held Dutch East Indies, 356 in Libya, 529, 576-77 in Mexico, 231, 272-73 in 19th-century Europe, 25, 62 in 1960s, 568-69 in 1979, 704 in Oklahoma boom, 223 of OPEC vs non-OPEC countries, 714, 718, 719-20, 745, 750 in Pennsylvania boom, 30, 31 in Persia, 173-74 in Saudi Arabia, 301, 685, 690, 695, 713714, 720, 721, 748 in Texas booms, 83, 85, 250 U.S totals of, 500, 567, 724 Venezuelan boom, 235, 236 world totals of, 464, 499-500, 685 in World War I, 178, 181 in World War II, 379 oil refineries: in Abadan, 149, 160, 173, 421, 450, 458, 462-64,466, 707, 711,767 in Balikpapan, 351-54 in Caribbean, 236 in Iran, 149, 160, 173, 421, 450, 458 of Mêlions, 90, 91 in Pennsylvania oil boom, 29, 99 post-World War II redesign of, 410, 542 of Rockefeller, 37, 38-43, 46, 53 of Sun Oil, 92 teakettle, 247, 660 oil refining, 22 Arabs' early knowledge of, 24 catalytic cracking process of, 383 products from, 51 thermal cracking process of, 111-12, 223, 383 oil reserves: of Alaska, 571, 576 of Libya, 576 of Middle East, 12, 393, 500, 566, 770 of Neutral Zone, 444 of new oil companies, 532 of Saudi Arabia, 499, 651, 721 of Soviet Union, 14 of U.S., 409, 500,665 world totals of, 769 "Oil Scene: Pressure All Around, The," 598 Oil Service Company of Iran (Osco), 678, 681, 683 oil shocks, see Arab oil embargo (1973), oil prices affected by; Second Oil Shock; Third Oil Shock oil spills: Exxon Valdez (1989), 778 Santa Barbara (1969), 569, 573 Oil Supply Advisory Committee, 487 oil transportation: Standard Oil's early practices in, 39, 41, 43, 44, 65, 108 tank cars for, 51, 65, 110 see also pipelines; Suez Canal; tanker ships Oil War (1872), 41, 99, 102 Oil Wars, 114-33 attempted grand alliance in, 71-72 four factions of, 71 between Royal Dutch and Shell, 121-27 between Royal Dutch and Standard, 128 Russia's political turmoil and, 129-33 Oil Weekly, 372 Okinawa, 363, 365 Oklahoma, 52, 97, 213, 249, 250, 257, 259 oil booms of, 87, 128, 213, 223 Oklahoma Commerce Commission, 249 Oklahoma Corporations Commission, 567 oleum incendiarum (Greek fire), 24 Oman, 534, 586, 751 Onassis, Aristotle, 722 O'Neill, Eugene, 656, 657, 658 Onishi, Takijiro, 365-66 Only Yesterday (Allen), 208 OPEC, see Organization of Petroleum Exporting Countries Open Door policy, 195, 197, 202, 307 Operation Ajax, 467-70 Operation Blau, 336-39 Organization for Economic Cooperation and Development (OECD), 493, 556, 568, 598, 630 Organization for European Economic Cooperation, 488, 493 Organization of Arab Petroleum Exporting Countries, 719 Organization of Petroleum Exporting Countries (OPEC), 519-40, 534, 580, 633-52, 664, 716, 746-52 Arab oil embargo (1967) and, 555-58, 568 Arab oil embargo (1973) and, 606-9, 611-32 "Carlos's" attack on, 642 as cartel, 719-20 combined earnings of, 634 creation of, 522-23 deficit of, 635 direct marketing by, 652 futures trading undermines power of, 725-26 loosening grip of, 665, 711-14, 718-20, 725-26 market share and, 748-51, 761 member nations of, 522 1986 oil price negotiations and, 758-61, 763-64 oil prices cut by, 720-21 XX oil prices raised by, 606, 615, 622, 625626, 634-36, 646, 685-86, 688-91, 696-97, 703-6, 711-14 participation ownership and, 583-85 political rivalries within, 524, 636-39 production levels cut by, 719-20 production quotas of, 721, 745-46, 761, 764, 771 profit-sharing negotiations of, 580-83, 599-602, 605-6 roots of, 509, 513, 516, 518, 558, 773 tax of, 635, 637, 764 20th anniversary of, 706 U.S and, 642-46 ostatki, 116 Ottoman Empire, 173, 184, 187, 188, 204, 284, 293, 771 ozone depletion, 15, 779 Pahlavi, Reza Shah, 192, 269-71, 450, 451, 452, 456, 465, 469, 470, 478, 564, 674, 683, 700 Palestine, 61, 301, 396, 404, 411, 425-26 Palestinian Liberation Front, 651 Pan American Petroleum, 213, 225, 229, 236 Pan-Arabism, 481, 508, 592 Panic of 1893, 98 Pantepec Oil, 435 Panther, 11, 153 Panzer Army, German, 339, 340 paraffin, 51 Paris, 15, 112, 168-70 Paris-Bordeaux-Paris auto race, 79 Parkhurst, George, 533 Parra, Alirio, 758-60 participation ownership, 583-85 definition of, 583 Participations and Investments (P&I), 414, 415 Patterson, Robert, 383 Patton, George, Jr., 384-88, 536-37 Pauley, Edwin, 406 Pearl Harbor, 13, 278, 311, 314-16, 323327, 334, 336, 351, 354, 603 pearl industry, 293-94 Peiper, Jochem, 348-49 Pemex, 278, 279, 650, 666-67, 730, 777 Penn Square, 732 Pennsylvania: early oil exploration in, 26-29 oil boom in, 29-34 Oil Creek area of, 19, 28, 29, 99 Oil Regions of, 29-34, 38, 41, 42, 43, 46, 51, 56, 80-81, 99, 102, 103 State Geologist of, 52 State Legislature of, 44 Pennsylvania and Reading Railroad, 43 Pennsylvania Geological Report (1874), 57 Pennsylvania Railroad, 88 Pennsylvania Rock Oil, 22, 25 Pennzoil, 734, 767 Peres, Shimon, 489 perestroika, 778 Perez, Carlos Andres, 650 Perez Alfonzo, Juan Pablo, 435, 436, 509, 648-49, 703, 750, 758 background of, 510-13 OPEC founding and, 515-16, 518, 522523, 524-25 Perez Jimenez, Marcos, 510 Perlak, 118 Permian Basin, 223, 729 Persepolis, 563 Persia, 12, 55, 134-49, 236, 262, 294, 401 Anglo-Persian Concession agreement (1933) with, 269-71 establishment of oil industry of, 134-35, 136-49 Pacific Lighting, 430 Pacific Rim, 654 Pacific Western Oil, 441, 442 Page, Howard, 471, 476, 477, 520-22, 523, 529-30, 533-34, 535, 596, 636 Pahlavi, Farah Diba, Empress of Iran, 637, 672, 677 Pahlavi, Mohammed Reza Shah, 476, 518, 661, 707-8, 709, 710, 766, 777 ambitions of, 14, 501, 524, 533-34, 585, 625-26, 637-38, 563-64 background of, 450-51 British relations with, 450-56, 459, 467, 478, 534 British Royal Family and, 564-64 cancer of, 677, 680, 700 Carter and, 645-46, 672-74, 679-80, 700, 702 death of, 702 ENI-Iran partnership and, 503-5 exile (1953) of, 469-70, 477 exile (1978) of, 681-82, 700, 702, 777 growing discontent under regime of, 674681 human rights record of, 646, 673, 675-76 Islamic fundamentalism vs., 451, 674-83 Mossadegh and, 456, 466-70, 678 Nixon and, 566, 589, 626, 643, 644 oil companies and, 501, 507-8, 533-35, 585, 673 oil prices and, 524, 589, 625-26, 637-39, 644-45, 646, 673, 702 "Operation Ajax" and, 468-70, 534 Persepolis celebration of, 563-64, 682 Tehran Agreement and, 580-83 U.S intelligence reports on, 676-77 U.S relations with, 450-56, 459, 466-70, 534,638-39 * White Revolution reform program of, 675, 678 xxi Persia (cont.) as exempt from Red Line Agreement, 205 Russian-British rivalry over, 135-37, 140, 145-46 see also Iran Persian Gulf: British withdrawal from, 565-66, 589 Imperial Russia's naval presence in, 136 as world oil stabilizer, 532 see also Arabs; Middle East; specific countries Petrofina, 504 Petrôleos de Venezuela (PDVSA), 650, 758, 767, 777 Petrôleos Mexicanos, see Pemex Petroleum Administration for Defense (PAD), 464 Petroleum Administration for War (PAW), 377-78, 384, 392, 395, 400 Petroleum Industry Law, 308 Petroleum Intelligence Weekly, 591 petroleum jelly, 51 Petroleum Law, 235, 436 Petroleum Reserves Corporation, 397-99 Pew, J Edgar, 92, 406 Pew, J Howard, 222 Pew, J N , Pew, Robert, 92 Philadelphia, Pa., 46, 72 Philby, Harold "Kim," 286, 290, 292n, 302 Philby, Harry St John Bridger "Jack," 286-88, 290-92, 298, 301-2, 341, 445, 639 Phil Donahue Show, 692 Philip, Duke of Edinburgh, Prince, 564, 615 Philippines, 361, 362 Phillips, Frank, 225 Phillips Petroleum Company, 210, 225, 228, 438, 477, 668-69, 728, 730, 740 Philosophy of the Revolution (Nasser), 487, 577 Pickens, T Boone, Jr., 16, 727-30, 734735, 736-42 Piercy, George, 581-82, 601-2, 606 pine root gasoline, 363-64, 366 pipelines, 277, 399 Big and Little Inch, 375-76, 430 dynamiting of, 250, 251 first long-distance attempt at, 43-44 first network of, 33 in Imperial Russia, 62 increased flow of, 717 of independent Oil Region producers, 81 of Iran, 707 of Iraq Petroleum, 490, 495, 496 of Libya, 576 of Mêlions, 90-91 for natural gas, 430, 743 in Persia, 149, 173 xxii PLUTO, 382-83 portable, 382 Standard Oil's control of, 44 in Sumatra, 74 of Sun Oil, 92 of Texaco, 94 Trans-Alaskan, 572-74, 660, 665-66, 717 Trans-Arabian (Tapline), 411, 416, 425, 426-27, 480, 488, 578, 595 Pithole, Pa., 31, 51-52, 102, 716 Pittsburgh, Pa., 29 first gas station of, 210 natural gas first used in, 92 Placke, James, 581, 586, 587 plastics, 15 Pliny the Elder, 24 Ploesti oil fields, 181, 334-35, 346 Poincaré, Raymond, 190 Poland, 333, 334, 335, 345, 368 pollution, air, 15, 544, 568, 779 see also environmentalists Polo, Marco, 57 Pompidou, Georges, 564, 627, 655 Port Arthur, Tex., 90, 91, 94 Potrero del Llano, 4, 231, 391 Potsdam Declaration, 365, 407 Powell, Jody, 696 Pratt, Wallace, 434 prices, see oil prices Prince William Sound, 572 Prior, Frank, 508 Procter and Gamble, 753 Producers' and Refiners' Oil, 80 Progressive Party, 252 progressivism, 100-101, 106, 195-96 Project Independence, 617, 660 prorationing, 251, 255, 512, 524, 531, 539, 547, 567 prostitution, 85, 217, 251 Proudfit, Arthur, 434-35, 436, 437 Prudhoe Bay, 570-72, 576 Prussia, 61 Puerto Rico, 539 Pure Oil, 81, 102 Pu Yi, 306 Q-8, 767 Qaddafi, Muammar al-, 577-80, 581, 585, 592, 643 "Qadisiyah, Second Battle of," see IranIraq War Qajars, 136 Qatar, 393, 565 Queen Elizabeth, HMS, 156 Quincy, USS, 403 quotas, see oil import quotas radar, 377 Raeder, Erich, 373 Rafsanjani, Ali Akbar Hashemi, 766 railroads, 36, 249, 346, 386 between Berlin and Baghdad, 293 Flagler and, 38-39 in Imperial Russia, 60, 62, 231 regulation of, 106 Rothschild financing of, 60-61 South Improvement Company and, 41, 99 Standard Oil's rebates and drawbacks from, 39, 40, 41, 44, 65, 108 wartime use of, 167-68, 171 Ramsbotham, Peter, 457, 462 Randall, Clarence, 537-38 Rand Corporation, 661 Rangoon,141,149, 160 Raphael, 418 Rashid Ali coup, 708 Rathbone, Monroe "Jack," 520-22 Rayburn, Sam, 538 Razmara, Ali, 454, 455, 461 Reagan, Ronald R., 714, 742, 743, 746, 754, 755, 768 rebates, railroad, 39, 40, 41, 44, 108 recessions: of 1958, 537 of mid-1970s, 635 of 1980s, 717 Redbook, 754 Red Jacket, Chief of Seneca Indians, 20 Red Line Agreement, 204-5, 282, 290, 413-14, 417, 419, 627 Redwood, Sir Thomas Boverton, 139-40, 141, 143, 157, 231 Regan, Donald, 731 Régie Autonome des Pétroles (RAP), 526, 527 regular sales, 33, 34 Reid, Bud, 529 Rembrandt, 443 "rent" theory, 431-33 Republican National Committee, 754 Republican Party, 212, 215, 252, 395, 482, 754 as champion of oil interests, 196 National Committee of, 216 Standard Oil's contributions to, 97, 107 Republic Oil, 97, 198 Requa, Mark, 178, 179 Reuter, Baron Julius de, 135 Reynolds, George, 138-39, 142-43, 145, 146, 147, 158, 235-36, 682 Ricardo, David, 432, 448 Richardson, Elliot, 609 Richfield, 477, 570 Rickover, Hyman, 661 Riedemann, Heinrich, 241, 243, 260-61 Ringling Bros, and Barnum & Bailey Cir cus, 665 Rising Sun, 307 road maps, 210, 547 robber barons, 49, 55 Rockefeller, David, 700 Rockefeller, John D., 16, 35-55, 57, 58, 63, 64, 87, 104, 108, 119, 121, 137, 248, 264, 398, 570, 576, 724, 748 attempted indictment of, 44 auction between Clark and, 35, 197 Baptist Church activities of, 40, 48, 49 birth and childhood of, 36 business theories of, 42, 46-47, 52-53, 54, 96, 261 character of, 36, 38, 43, 47-50, 55, 71, 105 country estates of, 48, 49 early oil dealings of, 36-37 Flagler's relationship with, 38, 39, 48 health problems of, 98 kerosene as basis of fortune of, 14, 37, 46, 50 on Landis's fine against Standard Oil, 109 legacy of, 36 marriage of, 40 in Oil War of 1872, 41, 99 philanthropy of, 49, 99 physical appearance of, 36, 98, 105 poem by, 62 on public pressure, 41 public view of, 44, 54-55, 96, 100, 217218 refineries of, 37, 38-43, 46, 53 retirement of, 98, 99 South Improvement Company role of, 41, 99 Standard Oil stock holdings of, 40, 45, 46, 113 on Tarbell's articles, 105-6 Texas lawsuits against, 89, 93 title of president retained by, 100 University of Chicago endowed by, 49 vertical integration by, 37-38, 44, 54, 90, 224 wealth of, 47, 48, 55, 98, 99, 113 Rockefeller, John D., Jr., 49, 216-18, 242 Rockefeller, Laura Celestia Spelman, 40, 41, 48 Rockefeller, Nelson A., 437, 610, 660, 695 Rockefeller, William, Jr., 37, 42, 46, 109 Rockefeller, William, Sr., 36 Rockefeller family, 472, 508 rock oil, 19-22, 25-28, 694 Rodgers, W S S., 398 Rogers, H H., 95, 100, 102-5, 107 background and career of, 102-3 as Tarbell's connection, 102-5, 198-99 Twain's friendship with, 103, 199 Rolls-Royce, 405 Rommel, Erwin, 339-43, 385, 386, 480, 527, 528 xxiii Roosevelt, Franklin D., 275, 276, 278, 292, 332, 341, 355, 364, 372, 375, 377, 379, 380 death of, 405 Ibn Saud's meeting with, 403-5 inauguration of, 252 on Japan's trustworthiness, 306, 309 Lend Lease and, 371, 374, 394, 397 Middle East oil policy and, 397, 398, 401, 427 oil regulation in administration of, 252259, 403, 434 pre-World War II Japan policies of, 309314, 316-25 Roosevelt, Kermit "Kim," 468-69, 470, 534 Roosevelt, Theodore, 106-8, 109, 113, 131, 216, 252, 254, 468 Rostrow, Eugene V., 428 rotary drilling, 83, 84 Rothschild, Baron Alphonse de, 60-61, 71-72, 140 Rothschild, Baron Edmond de, 61 Rothschild, Baron Louis de, 440 Rothschild family, 60-61, 68, 76, 130, 141, 237, 264, 479 Nobel brothers and, 60-61, 62 in Oil Wars, 71-72, 121, 123 Royal Dutch/Shell stock of, 132-33, 140, 237, 266 Samuel's oil dealings with, 63, 65, 66, 67, 72, 115, 117, 123 Rotterdam, 175 "Rotterdam Market," 688 Rouhani, Fuad, 523 Roxana Petroleum, 128 Royal Air Force (RAF), 342 Royal Commission on Fuel and Engines, 156, 157, 158, 159 Royal Dutch, 72, 73-77 dividend payments of, 126 early growth of, 75 first stock flotation of, 73 launching of, 73 Perlak oil source of, 118 preference stock of, 77 Samuel's attempted buyout of, 76 Shell's combination with, 121-23, 125127, 128 Standard Oil's competition with, 75-77, 128 Royal Dutch/Shell Group, 174, 233, 299, 351, 356, 410, 473-74, 503, 545, 619620, 623, 687 in agreements with other companies, 260-67 Aramco and, 413, 414 BP's Nigerian venture with, 527, 696 Deutsche Shell subsidiary of, 547 xxiv establishment of, 122, 126-27 Gulfs deal with, 419-20, 422 in Imperial Russia, 133 in Iran, 464, 475, 477, 478 Japanese affiliate of, 307 Mexican Eagle controlled by, 232, 272, 274, 276 in Netherlands, 668 in North Sea, 665, 669 in Oman, 534 100-octane gasoline of, 383-84 portable pipeline system of, 382 production sources of, 133 proposed amalgamation of Anglo-Persian and,191-94,199 Rothschild stock in, 132-33, 140, 237, 266 Royal Navy's oil conversion and, 157-64 in Rumania, 132 in Soviet Union, 237-43 TCP and, 549 Turkish Petroleum role of, 185, 187, 191, 197, 202, 203 in U.S., 128, 191, 249-50, 267 in Venezuela, 234-36, 434-37, 649 in World War I, 175-76, 177 in World War II, 368-70 see also Asiatic Petroleum Royal Geographic Society, 287 Royal Navy (Great Britain), 172, 175, 191, 192, 262, 283, 294, 342, 373 in conversion to oil, 11-12, 116, 126, 139, 140-41, 150, 151, 153-64, 173 German rivalry with, 152-53 rubber, 380 Ruckelshaus, William, 609 rule of capture, 32, 220-23, 256 Rumania, 24-25, 132, 174, 218, 261 World War I destruction of oil industry of, 179-82 in World War II, 268, 334-35, 347, 370 Rundstedt, Gerd von, 384 Russell and Arnholz, 66-67 Russia, Imperial, 129-33, 135, 167 anti-Semitism of, 60, 132 early use of fuel oil in, 116 ethnic strife in, 130-31, 182 Great Britain's rivalry with, over Persia, 135-37, 140, 145-46 independent oil producers of, 71, 72 kerosene exports to Europe from, 61 kerosene imports from U.S to, 60 oil industry of, 57-63, 131-33, 178, 182, 583 political turmoil in, 129-31, 178 in Triple Entente, 146 world oil export trade share of, 62, 133 in World War I, 178, 179-80 see also Soviet Union Russian Oil Products, 264 Russian Revolution, 178, 182, 237, 239, 583 Russo-Japanese War, 106,130,131, 145, 170, 305, 314, 315, 324, 325, 364 Rutherford, Watson, 162 Ryan, Sir Andrew, 290, 292 Sacred Cow, 403 Sadat, Anwar, 592-93, 610 Arab oil embargo (1973) and, 606, 607, 609, 612, 626-27, 631-32 Camp David peace accords and, 696 October War and, 597, 599, 601-3 Saudi relations with, 593-96, 598, 606, 609, 631-32 Sadler, E J., 231, 266 St Louis, Mo., 209 St Petersburg, 57, 58 Sakhalin Islands, 364 Salisbury, Robert Gascoyne-Cecil, Lord, 66-67 Salomon Brothers, 739 SALT II, 693-94 salt domes, 83, 87, 219 salt wells, 25 Samuel, Marcus (elder), 63-64, 68 Samuel, Marcus (younger), 63-72, 74, 130, 161, 163, 174, 187, 191, 264, 295, 351, 361, 575, 576 attempted buyout of Royal Dutch by, 76 background and early career of, 64 Borneo oil and, 114-17 character of, 64, 70-71, 117-18, 120, 121 Deterding and, 121-27 Japan's arms supplied by, 70 as Lord Mayor of London, 123, 124, 163 in Oil Wars, 71-72 red oil tins of, 68-70 Rothschild oil dealings with, 63, 65, 66, 67, 72, 115, 117, 123 Royal Navy's oil conversion and, 116, 126,150, 154-55, 158, 159, 212 Standard Oil's competition with, 65-70 tanker fleet of, 65-68, 69, 70, 86, 87, 89, 117, 176 Tank Syndicate of, 70, 75, 76, 117 Texas oil dealings of, 86-87, 88, 89-90 in World War I, 174-75 Samuel, Samuel, 64-65, 67, 70, 71, 76, 161-62, 187 Samuel Samuel & Co., 64 San Fernando Valley, 81 San Francisco earthquake (1906), 80 San Joaquin Valley, 82 San Remo Agreement, 189, 195 Santa Barbara, Calif., 429 Sante Fe Railroad, 87 Saqqaf, Omar, 606-7, 608 Sarajevo, 164, 188 XXV Sassanid Persian Empire, 710 Saturday Night Massacre, 609-11 Saturday Review of Literature, 392 Saud, King of Saudi Arabia, 514, 517, 524 Saudi Arabia, 15, 284-92, 294, 391-99, 401, 491 Arab oil embargo (1967) and, 555 Arab oil embargo (1973) and, 606-7, 609, 611, 614-15, 625, 627, 630-31 discovery of oil in, 300-301 Egypt and, 524 Ibn Saud's consolidation of, 284-86 Iran and, 524, 532-35, 636-39, 719, 756 Iraq as potential threat to, 12, 772 Japan's deal with, 506-7 netback deals between Aramco and, 748-49 oil concession negotiations in, 281, 288-92 oil reserves of, 393, 499 oil revenues of, 747 participation ownership and, 583-85, 651 reduced links between Aramco and, 723724 U.S Lend Lease aid to, 397 U.S political focus on, 427-28 U.S solidification policy and, 396-99, 407, 411 in U.S Texaco, 767-78 world oil production role of, 672, 690, 697, 703-4, 705, 720-21, 747-50, 751, 760 see also Aramco; Casoc; Neutral Zones Sawhill, John, 617, 622 Schlesinger, James, 604-5, 644, 661-64, 698 Schmidt, Helmut, 694 Schumacher, E F., 559-60, 615-16 Second Oil Shock, 684-87, 717, 722, 727 Iran Hostage Crisis and, 699-700 Iranian Revolution and, 684-85 oil prices affected by, 685-87, 715, 759 stages of, 685-86 Securities and Exchange Commission (SEC), 736 seismographs, 219, 298, 391 "self-denying clause," 188, 204, 413 Senate, U.S., 217, 224, 227, 403, 406, 482 Teapot Dome scandal investigated by, 214-15 Watergate scandal and, 609 Senate Permanent Subcommittee on Inves tigations, 656-58 Seneca Oil (patent medicine), 20 Seneca Oil Company, 27 Seven Sisters, 503, 776 Shah of Iran (1919-1980), see Pahlavi, Mo hammed Reza Shah shale oil, 23, 162, 194, 235, 330, 428, 694, 696, 716-17 Shanghai, 67, 311 share buy-backs, 741 shareholders' value, 726-27, 740-42 Sharp, Walter B., 94 Shatt-al-Arab river, 707, 712 Sheets, Harold, 414 Shell-Mex/BP, 268 Shell of California, 210, 219, 226, 227 Shell Oil U.S.A., 741 Shell Transport and Trading, 86-87, 88, 89, 117 Royal Dutch combination with, 121-23, 125-27, 128 see also Royal Dutch/Shell Group Shell Transport Royal Dutch Petroleum, 123 Shepherd, Sir Francis, 457-58, 459 Sherman Antitrust Act (1890), 108, 109, 400 Shia Moslems, 138, 139, 201, 285, 533, 674, 675, 676, 678, 680, 701, 709, 711 Shinwell, Emmanuel, 458 "shoe-stringer," 87 shopping centers and malls, 551 Shultz, George, 589, 618, 743 Sick, Gary, 645 Sidon, 426-27 Siegfried Line, 386 Signal Hill, 219-20 Silliman, Benjamin, Jr., 19-22, 24, 26, 81 Silva Herzog, Jesus (father), 274-75 Silva Herzog, Jesus (son), 730-31 Simon, William, 618, 644-45 Sinai, 15, 555, 592, 612 Sinclair, Harry, 213-16, 218, 253 Sinclair Consolidated Oil, 210, 213, 215216, 266, 272, 438, 549, 570, 572 Singapore, 64, 67, 68, 72, 115, 354 Sirica, John, 619 Sisco, Joseph, 598 Six-Day War, 554-55, 722 Arab oil embargo (1967) and, 555-58, 568 October War vs., 603-4, 606, 608 Sixth Fleet, U.S., 613 Slade, Edmond, 160 Slick, Tom, 224 "slickem," 717 Small is Beautiful (Schumacher), 615 Smith, Adam, 432 Smith, George Otis, 194 Smith, Walter Bedell, 469 Smith, William A "Uncle Billy," 27 smog, 15, 568, 779 Smoot-Hawley Act (1930), 224, 257 Socal, see Standard Oil of California Socony, see Standard Oil of New York Socony-Vacuum, 227, 267, 399, 412, 503, 533, 545, 549 xxvi see also Mobil Oil Sohio (Standard Oil of Ohio), 110, 477, 733, 741 solidification, 396-99, 407, 411 solvents, 51, 80 Somme, Battle of, 171 South Africa, Republic of, 696 Southern California Gas, 430 South Improvement Company, 41, 99, 102 South Manchurian Railway, 305, 312 Soviet Union, 209, 237-43, 307, 309, 332, 416, 588, 758, 769 Afghanistan and, 701 Egypt and, 508 Hungarian Revolution crushed by, 489, 490 Iran and, 420-21, 422, 426, 427, 442, 446, 452, 454, 457, 468, 471, 475, 534 as largest oil producer, 773 natural gas exports of, 742-43, 745, 774 Nazi Germany's invasion of, 13-14, 316, 317, 319, 334-39 1986 oil price negotiations and, 761 October War and, 603-4, 607, 610, 611612 oil exports of, 515, 519, 718, 774 oil profits squandered by, 14 oil reserves of, 14 post-Revolution oil industry of, 237-43, 261, 264, 265, 266, 268 as second-largest oil producer, 515 Suez Crisis and, 481-82, 485-86, 490, 497 U.S wheat-for-oil deal with, 643-44 uncertain political future of, 14 see also Cold War; Russia, Imperial Spaak, Paul Henri, 487 Spaatz, Carl, 346, 347 speed limits, 380-81 Speer, Albert, 334, 344, 346, 348, 349, 350, 618 Spelman, Laura Celestia, see Rockefeller, Laura Celestia Spelman Spindletop, 82-87, 88, 91, 92, 93, 94, 126, 230-31, 282, 295, 410 Spitfires, 383 spot sales, 33 see also oil prices, spot SS, I G Farben and, 345, 346 Stalin, Joseph, 14, 16, 240, 334, 420-21, 575 early political activity of, 130, 131, 133, 182 World War II and, 335, 336, 364, 376, 382, 403 Stalingrad, 337, 338, 339 Standard Oil, 35-55, 57, 88, 96-113, 115, 118, 139, 140, 161, 725, 741 anti-monopoly suits against, 97 attempted buyout of Pure Oil by, 81 blue oil tins of, 68, 70, 95 board of trustees of, 45 brand names of, 110 competition among successors companies of, 112, 226, 242-43 consensus management system of, 46-47 dissolution of trust of, 97-98, 107-10, 111, 224, 225, 226, 279, 414, 658, 776 dividend payments of, 99 as early multinational company, 13, 35, 62 espionage network of, 46, 61, 75, 104-5, 114 establishment of, 40 Executive Committee of, 46-47, 51, 55, 62, 98 Flagler's role in, 38, 39, 40, 42, 45, 46, 104, 107 fleet of, 110 "gentlemen upstairs" of, 98, 103 growth of, 40-43, 50 as holding company, 98 in-house magazine of, 199 John D Rockefeller's stock holdings in, 40, 45, 46, 113 legal attacks against monopoly control by, 44, 45 Lucas rejected by, 83 management committees of, 45-46 marketing system of, 50, 51 Mêlions bought out by, 89, 92 naming of, 40, 50 natural gas dealings of, 92 as near-monopoly, 54 New York headquarters of, 47, 97 oil production start of, 51-54 in Oil Wars, 71-72, 131 "Old House" as nickname of, 78 pipelines controlled by, 44 political influence-buying by, 97, 104 price cutting campaigns of, 72, 75, 120, 126, 128, 748 prices determined by, 54, 90, 95, 725 public antipathy toward, 44, 199 railroad rebate and drawback practices of, 39, 40, 41, 44, 65, 108 Royal Dutch competition with, 75-77, 128 Rumanian activity of, 132 Russian competition with, 61-63 Samuel's competition with, 65-70 San Francisco earthquake (1906) and, 80 secret code of, 42 secret subsidiaries of, 42, 97 Seep Agency as buying arm of, 53-54 separate state organizations of, 45 Shell almost bought into by, 121-22 Tarbell's articles on, 101-6, 198 xxvii as trust, 44-47, 71, 96-97, 217-18, 224 turn-of-century decline of, 80, 95 Standard Oil Interests, 97-98 Standard Oil of California (Chevron), 82, 110, 227, 228, 256, 503, 558, 596 in Bahrain and Saudi Arabia, 282-83, 289, 295, 298, 301, 411 Gulf bought by, 738-40, 741, 742 see also Aramco; Casoc Standard Oil of Indiana, 110, 111-12, 210, 216, 217, 225, 226, 228, 236, 237, 250, 410, 507-8 Standard Oil of New Jersey, see Exxon Standard Oil of New York, 110, 195, 226, 227, 242-43, 266 see also Aramco; Mobil Oil; Stanvac Standard Oil of Ohio (Sohio), 110, 477, 733, 741 Standard Oil Trust Agreement, 45 Stanislaw, Joseph, 779 Stanvac, 307, 310-11, 356, 477 State Department, U.S., 308, 393, 397, 401, 407, 536, 568 Aramco-Saudi talks and, 412, 415, 425, 446-47 Creole-Venezuela talks and, 436 Gulf-Kuwaiti talks and, 420 Iranian consortium talks and, 466, 472, 477, 482 Japan and, 309, 312, 316 oil cartel feared by, 437-38 Open Door policy sought by, 195, 197, 294, 296 Shah and, 534 Stavelot fuel dump, 348-49 steam-powered automobiles, 80 steamships, 64, 87 Sterling, Ross, 250, 251, 254 Stettinius, Edward R., 405 Stevenson, Adlai E., 491 Stewart, Robert, 216-18, 260 Stimson, Henry L., 311, 312, 323, 325, 397 stock buy-backs, 741, 742 Stokes, Richard, 461, 462, 463 storage tanks, 65, 67, 75 "Story of a Great Monopoly, The" (Lloyd), 44 Stowe, Harriet Beecher, 50 Strategic Air Force, U.S., 346 Strategic Bombing Survey, U.S., 357 Strategic Petroleum Reserve, U.S., 731, 774 Strathalmond, Lord, 581 Strathcona, Donald Alexander, Lord, 141 Strauss, Robert, 696 stripper wells, 249, 378 Stumme, Georg, 342 submarines, 176, 177, 357-58, 359, 373-77, 383, 539 Subroto, Dr., 712-13 suburbanization, 14-15, 550-51 Sudan, 481 Suez Canal, 117, 162, 340, 427, 463, 578, 708 first oil tankers allowed through, 66-67, 69, 70, 74, 176 opening of, 64, 479 ownership of, 479 strategic value of, 480 Suez Crisis, 14, 479-98, 627 background of, 480-83 consequences of, 495-98, 503, 505, 544, 558 events of, 483-93 Oil Lift of, 493-95 Suleiman, Abdullah, 289, 290, 291, 441-42, 445 Sullivan, William, 680, 682 Sultan ofLangkat, 118 Sulzberger, C L., 404 Sumatra, 55, 115, 128, 138, 356 Royal Dutch activity in, 72, 73-77, 118, 127 traditional oil torches of, 73, 75 Sunni Moslems, 138, 201, 284, 533, 709 Sun Oil, 110, 210, 222, 383, 410, 537 birth of, 92 pipelines of, 92 refineries of, 92 Superior Oil, 734 supervening illegality doctrine, 413 Supreme Court, U.S., 106, 108, 109, 195, 224, 256, 372 "surge pot," 532 Sutcliffe, John, 647 Suzuki, Kantaro, 364, 365, 366 sweet oil, 529 Swift, Elizabeth Ann, 699 Swinton, Ernest, 170 Sykes-Picot Agreement, 188 synthetic fuels, 162, 194, 368-69, 428-29 Japan and, 308-9, 358 Nazi development of, 328-31, 332-33, 343-48 U.S energy crises and, 591, 660, 694-96 Synthetic Oil Industry Law, 308 Syria, 184, 189, 200, 425, 489, 508, 554 October War and, 593, 600, 601, 602, 603, 604, 626, 631-32 Soviet relations with, 597, 600, 604, 1 612 Syrota, Jean, 656 Taconic Parkway, 553 Taft, William Howard, 107, 212 Talfah, Adnan Khayr Alah, 709 Talfah, Khayr Allah, 708, 709 Tallasou, Marguerite, 440 Tanaka, Kakuei, 599, 628 xxviii tank cars, railway and horse-drawn, 51, 65, 110 tanker ships, 75, 206 in accidents, 410, 778 Arab oil embargo (1967) and, 556-57 development of, 59, 65-66, 68 opposition to, 66-67 post-World War II shortage of, 410 sinking of, in World War I, 176, 177 sinking of, in World War II, 358, 362, 374-75 Suez Canal opened to, 66-67, 69, 70, 74, 176 super, 496-97, 498, 542, 557 tanks, 170-71, 337, 338, 348-49 Tank Syndicate, 70, 75, 76, 117 Tapline (Trans-Arabian Pipeline), 411, 416, 425, 426-27, 480, 488, 578, 595 Tarbell, Frank, 102 Tarbell, Ida Minerva, 101-6, 217, 226, 254, 517, 520 background of, 101-2 Standard Oil muckraking by, 101-6, 198 Tarbell, William, 102 tariffs: in France, 190 in Imperial Russia, 32 in Nazi Germany, 328, 329, 331 tariffs, U.S.: in 1930s, 224, 237, 257-58 1950s lobbying for, 535-37 1986 calls for, 755-58, 761 turn-of-the-century doubling of, 82 Tariki, Abdullah, 509, 515, 524, 578, 764 background of, 513-14 OPEC founding and, 516, 517-18, 522523 tar pits, 23, 81 Tatars, 130, 131 TCP (tricresyl phosphate), 549-50 Teagle, Walter, 196-200, 212-13, 218, 414, 418 Achnacarry Agreement and, 260-65 background and career of, 197-99, 224, 225, 228, 238, 240-43, 250, 251, 308, 330-31 U.S Mesopotamian-Iraqi involvement negotiated by, 197, 199-200, 201, 203, 204, 205 teamsters, 33 Teapot Dome scandal, 211-16, 218, 222, 229, 252, 253, 609 Tehran Agreement, 582-83, 585, 586, 592, 599,609 Telaga Said, 73, 74 telegraph, 64 Texaco, 93-95, 299, 503, 596 Cullinan ousted from, 94 founding of, 94 Getty Oil bought by, 734 Pennzoil suit against, 734, 767 pipelines of, 94 Saudi Arabia's U.S holdings of, 767-68 symbol of, 94, 210, 410, 549 see also Aramco; Casoc Texaco Star Theater, 549 Texas, 225, 257, 259, 407, 429 anti-monopoly suit against Standard Oil brought by, 97 oil booms of, 82-87, 88, 92-95, 223, 244-52, 331, 372 State Legislature of, 94 Texas Company, 94, 225, 226, 228, 251, 266, 268 Texas Eastern Transmission, 430 Texas Fuel, 93 Texas Geological Society, 83 Texas Instruments, 392 Texas Railroad Commission, 402, 403, 473, 719 creation and original purpose of, 249 federal quotas and, 257, 258-59 independent producers' interests reflected by, 494, 557 oil regulation mandate of, 249, 532, 567, 725 Perez Alfonso influenced by, 511, 512 prorationing ordered by, 249, 251 Texas Rangers, 250, 255 Thatcher, Margaret, 694, 742, 746, 748, 760 thermal cracking, 111-12, 223, 383 Third Oil Shock: additional oil supply and, 750 consequences of, 750-52, 757-58, 760-61 oil price and tariff negotiations and, 755761 resolution of, 763-64 Third World, 644, 664 debt in, 635 decolonization of, 14, 524 human rights in, 675 intermediate technologies for, 559 Thomas, Lowell, 410 Thompson, E O., 494 Thomson, Roy Herbert, Lord, 668 Three Mile Island, 691, 693, 694 Three Whom God Should Not Have In vented (Talfah), 709 Tidewater Oil, 440, 443 Tidewater Pipeline, 43-44 Tiflis, 60 Tikrit, Tikritis, 708-9 Time, 310, 468, 530, 563 Times (London), 160, 176, 496 Timurtash, Abdul Husayn, 270 Tito (Josip Broz), 482, 563 Titusville, Pa., 26-28, 29, 33, 98-99, 102, 104, 105,109, 147 Titusville Oil Exchange, 33-34, 99 Tobruk, 342 xxix Togo, Fumihiko, 628, 629 Tojo, Hideki, 312, 322-23, 354, 356, 357, 364, 366-67 Tokyo Economic Summit, 694-95 toluol, 174-75 torsion balance, 218 town gas, 23, 50, 79, 92 Townsend, James, 16, 26, 27, 28-29 Toyoda, Soemu, 361, 363 Toyoda, Teijiro, 319 Trans-Alaskan Pipeline, 572-74, 660, 665666, 717 Transjordan, 201 see also Jordan Trans-Siberian Railway, 116 Trans World Airlines, 740 Treasury Department, U.S., 318 Treatise on Petroleum, A (Redwood), 139 trench warfare, 170, 180 Trinidad, 23 Triple Entente, 146 Tripoli, 171, 339 Tripoli Agreement, 582-83, 585, 586, 592, 599 Troll natural gas field, 743 Truman, Harry S., 425, 427-28, 536, 656, 702, 771 Ickes fired by, 405-6, 407 Iran and, 457, 460, 464, 465 oil cartel and, 473-75 Truman Administration, 466, 473 Anglo-American Petroleum Agreement killed by, 407 synthetic fuel research policy of, 428-29 Tapline supported by, 425 Truman Doctrine, 416, 448 trusts, 96-97, 100, 101, 162, 265, 372, 414, 416 Tsushima, Battle of, 130, 314, 324 Tudeh Party (Iran), 421, 451, 468, 469 Tulsa, Okla., 90, 128 Turkey, 60, 173, 182, 556, 564 Iraqi border dispute with, 200 Soviet Union and, 427 Truman Doctrine and, 416 in World War I, 146, 173, 182 see also Ottoman Empire Turkish National Bank, 185, 187 Turkish Petroleum Company: British and, 185, 187, 190, 191, 196 French and, 189-90, 197 Germans and, 185, 187, 190 Iraqi agreement with, 201-2 ownership of, 185 post-World Wàr I revival of, 189 Red Line Agreement with, 204-5, 282, 290, 413-14, 417, 419, 627 Teagle's negotiations with, 197, 199-206 World War I hiatus of, 188 see also Iraq Petroleum Company turnpikes, 552-53 turpentine, 22, 30 Twain, Mark, 55, 103 Twitchell, Karl, 288, 289, 290 U-boats, 177, 373-77, 383, 539 Uncle Tom's Cabin (Stowe), 50 Union Club, 39 Union Oil (Unocal), 82, 210, 219, 227, 716, 740 United Arab Emirates, 566, 639i 690 United Arab Republic, 508 United Mine Workers, 543 United Nations, 445 Iran-Iraq War cease-fire and, 766-67, 768 Kuwait invasion (1990) and, 12, 772, 775 partition of Palestine recommended by, 425-26 ' Resolution 242 of, 606-7, 608 Suez Crisis and, 492, 554 United States: Arab oil embargo (1967) and, 555-58 Arab oil embargo (1973) and, 606-32 arms-for-hostages deal between Iran and, 765, 766 Britain's oil imports from, 236 decline of oil hegemony of, 393, 395, 407, 410 end of oil exploration in, 733-34 energy policy of, 659-64, 754 GNP of, 635 "Good Neighbor" Latin America policy of, 275-76 immigration to, 37 Iraq-Kuwait crisis and, 12-13, 772 Japan's pre-World War II relations with, 309-14, 316-25 kerosene exports to Russia from, 60 as largest oil consumer, 14, 194, 209, 541, 724, 745 Mesopotamian-Iraqi oil negotiations of, 196-206 Middle East oil and British relations with, 396-97, 399-403 Middle East politics and, 184, 477, 498, 694 in 1986 oil price negotiations, 758-61 October War and, 603-6, 610, 611-12, 626-27, 630-32 oil conservation in, 410, 659-64, 695 oil exploration opposed in, 15 oil exports to Europe from, 30, 56-57, 88, 178, 258 oil import quotas of, 512-13, 515, 529, 535-40, 546, 548, 558, 567, 589-90, 591 oil imports of, 195, 567, 574, 591, 748, 770 XXX oil reserves of, 409, 500, 665 oil stockpile of, 536-37, 558, 661, 743 oil trade and political relations between Mexico and, 231-33, 271-79 OPEC strategy of, 642-46 Open Door policy sought by, 195, 197, 202, 307 post-Civil War growth of, 37, 96 Saudi Arabia focus of, 427-28 Saudi Arabia's diplomatic relations with, 292 as second-largest oil producer, 745 solidification policy of, 396-99, 407, 411 Soviet oil-for-wheat deal with, 643-44 unemployment in, 635 world hegemony of, 531 world oil export trade share of, 62 in World War I, 171, 172, 176, 177, 225, 278 World War II oil policies of, 377-81 in World War II Pacific theater, 351-67 United States Oil Policy, The (Ise), 758-59 Unocal, see Union Oil updated book value, 584 U.S Leather, 93 U.S Steel, 729 Utah, shale oil in, 194, 716 Vacuum Oil, 227, 242-43 Valdez, Alaska, 572, 666 value gap, 726-27 Vance, Cyrus, 645, 696 Vanderbilt, William, 47 Vaseline, 51 Venezuela, 15, 224, 258, 261, 272, 277, 279, 416, 429, 433-37, 445, 470, 557 1948 coup in, 510-11 oil boom of, 233-37 oil concession cancelled by, 648-50 as OPEC member, 522, 524, 580, 581 participation ownership and, 584 Ventura County, Calif., 81 Verdun, 168, 177 Victoria, Queen of England, 479 Vienna, 24, 400 Vietnam War, 538, 556, 565 Vincennes, 766 Virgin Islands, 539 Voice of the Arabs, 480, 577 Volcker, Paul, 730 Volkswagens, 329, 339 Voroshilov, Klementi, 130 Wahabi Moslems, 284, 285 Walden, George, 310-11 Waley Cohen, Robert, 126, 127, 149, 192 Wall Street Journal, 558, 732 Walters, P I., 647, 722-23 Walters, Vernon, 459-60 Walton, Paul, 441-43, 444 War Department, U.S., 108 Warner, Charles Dudley, 55 War Production Board, U.S., 377 War Shipping Administration, U.S., 377 Washington Energy Conference, 630, 685 Washington Naval Conference, 306 Washington Post, 214, 215, 596, 696, 753, 754, 757 Watch Committee, 600 water drilling, 83, 87, 281, 288 water drive, 251 Watergate scandal, 735, 754 impact of, on foreign relations, 609-10, 612, 631-32 impact of, on government credibility, 610-11, 618-19, 620, 659, 661, 693, 775 Nixon Administration and, 609-11 Wealth Against Commonwealth (Lloyd), 100-101, 103 Webb-Pomereme Act (1918), 265 Wehrmacht (German Army), 331, 336, 337 Weizmann, Chaim, 301 Welles, Sumner, 318, 320, 401, 435 Wellings, F E., 499 Wellington, Arthur Wellesley, Duke of, 432 "We're Running Out of Oil" (Ickes), 395 West Bank, 555 West Palm Beach, Fla., 39 West Texas Intermediate (WTI), 724, 726, 749, 750 whaling industry, 22 White, Edward, 109 White, Theodore H., 310 Whiting, Ind., 53 "Why the Bankers Suddenly Love Mex ico," 667 Wilcox, Claire, 407 William II, Emperor of Germany, 11, 152 William III, King of Netherlands, 73 Williamson, George, 579-80 Willis, "Tex," 535-36 Wilson, Arnold, 143, 147, 148 Wilson, Harold, 565 , 670 Wilson, Woodrow, 177-78, 188-89, 194, 214, 233, 272 Wilson Administration, 195-96, 212, 215 windfall profits tax, 693 Winston Churchill (Randolph S Churchill), 12n Witte, Count Sergei, 129, 130 World Almanac, 221 World Bank, 466, 482 World Crisis, The (Winston S Churchill), 193, 698 World War I, 167-83, 306, 307, 339, 388 aftermath of, 167 airplane use in, 171-73 armistice, 183 background and causes of, 11-12, 152153,163-64,167 fuel oil shortage in, 176-79 outbreak of, 164, 188 Parisian taxi armada in, 168-70, 189 Rumanian oil industry destroyed in, 179182, 218, 370 submarine use in, 176, 177 tank use in, 170-71 U.S in, 171, 172, 176, 177, 225, 278 as war of defense, 170,171 World War II, 305-88 Allies' final push in, 384-88 atomic bombing of Japan in, 365 Balikpapan refinery destroyed in, 351-54 Battle of the Atlantic in, 373-77 code-breaking in, 314, 317, 320, 323, 325, 340, 356, 357, 374, 376-77 concentration camps in, 345-46 European outbreak of, 268, 277, 310, 311, 333, 368 German buildup and, 328-50 German synthetic fuel industry as Allied target in, 346-48 Germany's defeat in, 349-50 Japanese buildup and, 305-27 Japan's defeat in, 362-67 Middle East oil industry shut down in, 301, 391 Normandy invasion in, 347, 348, 384 North African campaign in, 339-43, 376, 382, 480 oil's strategic importance to Allies in, 368-88, 395 oil's strategic importance to Axis in, 14, 305-67 Pacific theater of, 351-67 Soviet-Japanese fighting in, 364, 365 submarine use in, 357-58, 359, 373-77, 383, 539 tank use in, 337, 338, 348-49 Wright, M A., 528 Wright brothers, 95, 171 Wyoming, 211, 225 Yale University, 19, 21 Yalta Conference, 364, 403 Yamamoto, Isoroku, 314-16, 326, 355-56, 359 Yamani, Ahmed Zaki: Arab oil embargo (1967) and, 555, 557558 Arab oil embargo (1973) and, 596, 597598, 599, 601-2, 606, 607, 611, 625, 627, 628 Aramco concession and, 651-52, 723, 749 xxxi Yamani, Ahmed Zaki (cont.) background of, 639-42 Faisal I and, 524, 582, 596-98, 607, 640642, 763 firing of, 763 Harvard address of, 760-63 Iran and, 534, 638-39 oil price stability and, 672, 689, 703-6, 713-14, 720-21, 749, 751, 756, 759, 760-61 OPEC and, 581-82, 583-84, 599, 601-2, 606, 672, 689, 720, 747-48, 751, 759, 760-61 participation ownership and, 583-84, 585 Tehran agreement and, 581-82, 592 "Yamani edict," 690-91 Yamashita, Taro, 506 xxxii Yamato, 363 Yankelovich, Daniel, 618-19 Yates oil field, 223, 729 Yazidis, 201 Yemen, People's Democratic Republic of (South), 524, 565, 594 Yom Kippur War, see October War Young, Andrew, 680 Young, James, 23 Young Ladies Oil, 86 Ypres, 180 Yugoslavia, 335, 482 Zahedi, Fazlollah, 468, 469 Zapata company, 753-54 Zelten, 528-29 Zhukhov, Yuri, 336 Zijlker, Aeilko Jans, 73-74, 75 About the Author Daniel Yergin is one of the world's leading authorities on world affairs and the oil business His prize-winning book, Shattered Peace, has become a classic history of the origins of the Cold War He is coauthor of Energy Future: Report of the Energy Project at the Harvard Business School, a seminal work on energy policy that was a best-seller in the United States, Europe, and Japan Yergin is president of Cambridge Energy Research Associates, one of the world's leading energy consulting firms He was previously a Lecturer at the Harvard Business School and the John F Kennedy School of Government at Harvard University He received a B.A from Yale University and a Ph.D from Cambridge University