World Play History of Stuff that might be Important or Interesting

Transcription

1 World Play History of Stuff that might be Important or Interesting BUT FIRST - OK Oil Company; Discovered major field in Central Arkansas FOR Candy Prize?

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3 1911 FirstLordoftheAdmiralty British Royal Navy Coal to Oil Coal primary source of power for naval vessels Advantage: Coal found in abundance in Britain. Oil was foreign Disadvantages: ½ thermal content of oil Cumbersome storage Could not refuel at seal Slower than oil-fueled vessels "To change the foundation of the navy from British coal to foreign oil was a formidable decision in itself."

4 First Admiral of British Navy

5 Anglo-Persian Oil Company 1901 D Arcy negotiated concession to drill for oil in Persia Paid 20,000 Pds. (2 Million today) Iranian Desert exploration Small Pox, Bandits and Warlords, no water and 120 degree temperatures May 1908 ran out of money ceased work EXCEPTthe geologist hit oil the next day April 14, 1909 APOC formed

6 APOC Continued 1913 APOC negotiates with new client Churchill Iran gets 16% Royalty and has no say over Oil; Discontent War brewing; Britain injected capital, took controlling %. 20 year contract Silent partner Renegotiated in 1933; 60 year concession Allowed APOC 100,000 Sq. Miles; exempted APOC from Import duties Becomes BP in 1954 Forced to join 7 Sisters Nationalized Iranian Oil Participants BP(40%), (Gulf 8%), (RDS 14%), (S.A 6%), (SoCal, SoNJ, SoNY and Texaco each 8%) Controlled 85% of World Oil reserves until 1973

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8 Time marches on Motorized Technology Changes Scene of War Horses vs. Machines Ground Transportation British Forces 56,000 trucks 23,000 motorcars 34,000 motorcycles

9 Venezuela 1922-Ushers into Modern Oil Age Barroso No. 2 Well (Royal Dutch Shell 1928 Leading Exporter in the world; helped win WWII Driver of OPEC formation Nationalized in 1976 Several major plays Largest proven reserves in world

10 1915 Percy Cox recruited him to Baghdad 1916 Revenue Commissioner of British Occupied Territories 1920 Minister of Internal Security in the British Mandate of Iraq 1921 Head of Secret Service in Mandatory Palestine Saint John Philby

11 Turkish Petroleum Company Deustche Bank Royal Dutch/Shell National Bank of Turkey (British) Anglo Persian Oil Company (BP) Americans allowed buy in later Ottoman Concession Created for Ottoman Oil Exploration

12 San Remo Conference Following WWI: Great Britain, France, Italy, Japan, Greece, and Belgium met to discuss the partitioning of the Ottoman Empire Excluded US from Mesopotamian Oil Nothing in Saudi /Bahrain but sand and rock; outside division War showed importance of Oil

13 The Red Line Agreement

14 Red Line Cnt d July 31, 1928 signed (Post Iraq Discovery) Anglo-Persian, Royal Dutch/Shell, the Compagnie Française des Pétroles (CFP, later Total), and the Near East Development Corporation signed agreement Literally drew a red line on a map around operating area self-denying clause. Stipulated that the participating companies would agree not to develop oilfields within the territory comprising the TPC unless they secured the support of the other members BUT Non TPC partners weren t bound

15 Iraq Concession granted to TPC Yr. Concession Royalty to be paid per TON of Oil sold Royalty Contingent Upon Profit, BUT had 12 year grandfather to pay Iraqis felt cheated Oil Discovered October 15, 1927 Hastened American involvement - Near East Development Corporation - Standard of New Jersey, New York, Gulf. Pan American Petroleum (Foreign holdings to SONJ) and Atlantic Richfield (Arco) - October 14 th, 1927 Baba Gurgur (Father of Flames) - TPC renamed Iraqi Petroleum Company in Nationalized in 1966

16 Bahrain June 1932 Oil Well Number 1 Bahrain Oil Co Only concession to drill Subsidiary of Standard Oil of California First Oil Well in Southern Arabian Gulf Peaked interest in Mainland

17 Bahrain Oil Fields The Precursor Standard Oil of California bought Gulf Oil concession Dr. George Lee (Anglo-Persian) I ll drink any oil found in Bahrain

18 Kuwait find..

19 Kuwait 1938: First discovery of the Burgan field located in the desert of southeastern Kuwait; Gulf Oil 50% -Anglo Persian 50% 1946: Commercial production began by the Kuwait Oil Company -Why 46? World s largest sandstone oil field Suspected since 16 Current Oil Production: 1,200,000 barrels / day Oil Reserves: 44,000 million barrels

20 Kuwait Persian Gulf War In January and February 1991, retreating Iraqi military forces set fire to 605 to 732 oil wells, as well as oil lakes, in the Burgan Field as a scorched earth policy Extinguished in April 1991 by a number of forces, including the Red Adair Service and Marine Company

21 Ibn Saʿūd (EE-ben SOW-Ood)

22 Saudi Arabia Aramco (FKA Arabian-American Oil Company) San Remo Petroleum Agreement Excluded US from Mesopotamian Oil Saudi Arabia and Bahrain were rock and sand, left out of the Remo Division Saudi established 1932 Post Bahrain Concession from Ibn Saud to Cal Standard Oil Texaco bought 50% Granted the concession to US Company in 1933, Saudi Arabia received full diplomatic recognition January 31, 1944 changed name to Aramco

23 Saudi Arabia Ghawar Field Geologist: Max Steineke California-Arabian Standard Oil Company Developed structural drilling technique and core sampling Original Indiana Jones

24 Dharan No barrels of Oil a day More importantly Proved SoCal correct in theory

25 Ghawar Field 1948:AinDarWellNo.1completed 1951: Producing 15,600 barrels/ day More than half of the oil production of Saudi Arabia 5 million barrels / day 2x bigger than Rhode Island; 1.5x bigger than delaware Oil Reserves: Est. 70 billion barrels State-owned Saudi Aramco owns and operates entire field Most valuable company in world Estimated value? ( Trillion)

26 WWII Oil Supplies Pre-39 Exploration and development paved way for Post-45 Boom.

27 Energy Security

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29 Paying Attention?

30 United Arab Emirates 1958: Production began Current Oil Production: 250,000 barrels / day Oil Reserves: 10.3 billion barrels Owned & Operated by Abu Dhabi National Oil Company Discovered by BP/Total JV Offshore Discovery

31 Built 1869, 120 miles long, shortened British-India supply route from miles to 7180 miles Suez Canal Crisis July 26, 1956, Nasser nationalizes the Suez Canal Company, and by extension the canal itself Shuts it down Britain, France and Israel invade Egypt Historians argue it ended Britain s Superpower status Curbed Colonial actions Necessitated the invention of supertankers

32 Offshore Drilling 1947: First out of sight well drilled by Kerr-McGee in Gulf of Mexico 22 feet deep 10.5 miles off coast Kermac Rig No. 16

33 Offshore Drilling Robert S. Kerr Co-Founder of Kerr-McGee Aubrey McClendon Great Nephew

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35 These materials are public information and have been prepared solely for educational purposes to contribute to the understanding of energy and oil and gas law. These materials reflect only the personal views of the author and are not individualized legal advice. It is understood that each case is fact-specific, and that the appropriate solution in any case will vary. Therefore, these materials may or may not be relevant to any particular situation. Thus, the author and Steptoe & Johnson PLLC cannot be bound either philosophically or as representatives of their various present and future clients to the comments expressed in these materials. The presentation of these materials does not establish any form of attorney-client relationship with the author or Steptoe & Johnson PLLC. While every attempt was made to insure that these materials are accurate, errors or omissions may be contained therein, for which any liability is disclaimed.