The Prize: The Epic Quest for Oil, Money, & Power (Simon & Schuster; 1991)

History Cover 1 Copyright page 8 Contents 11 List of Maps -1 The Independents Break Out: The First Long Distance Pipeline, Tidewater, 1879 46 Marcus Samuel's Coup: The Voyage of the Murex, 1892 71 Opening Up The Middle East: Oil in Persia, 1901 146 The Red Line Agreement, July 1, 1928 207 The Great Migration of the 1920s: Mexico's Golden Lane to Venezuela's Lake Maracaibo 237 War in Europe and North Africa 340 War in the Pacific 362 The Great Oil Deals: Middle East Consortia, 1951 425 Alaskan Pipeline and Alternate Routes, Early 1970s 575 List Of Illustrations -1 1 "Colonel" Edwin Drake, in top hat, stands in front of the first oil well near Titusville, Pennsylvania, in 1859. The title of "Colonel" had been invented to impress the local backwoodsmen, who thought Drake was crazy for trying to drill for oil. 881 2 George Bissell, the father of the oil industry, figured that a business could be made out of selling "rock oil." An advertisement for patent medicine gave him the idea of drilling for it. 882 3 The fever that swept America in the wake of the first oil boom was captured in the popular music of the day. 882 4 The Shoe and Leather Petroleum Company, foreground, at Oil Creek, Pennsylvania, in 1865. 882 5 John D. Rockefeller, repelled by the chaos of the oil business, created the great Standard Oil Trust, which soon dominated the industry and made him the richest man in America. 883 6 For boys with pluck, the oil business was a sure way to fame and fortune. 883 7 Arthur Bates, an oil dealer in Geneva, Ohio, delivered kerosene—the "new light "—door-to-door from his horse-drawn tank wagon. 883 8 Ida Tarbell, muckraker and America's first great woman journalist, fearlessly exposed Standard Oil. Her main target, John D. Rockefeller, called her "Miss Tar Barrel." 884 9 Standard director H. H. ( "Hell Hound ") Rogers became Tarbell's inside source as the result of an introduction from Mark Twain, whom Rogers had saved from bankruptcy. 884 10 Tarbell followed up her attack on Standard with a scathing personal sketch of Rockefeller himself in 1905. 884 11 The trust was busted. The headlines the day after the Supreme Court decision of May 15, 1911. 884 12 It was said that John Galey, the greatest wildcatter of the 19th century, could smell oil. He chose the drilling site in Texas that led to the creation of the Gulf Oil Company, vastly enriching the fortunes of the Mellon family of Pittsburgh. 885 13 On January 10, 1901, Captain Anthony Lucas's well blew in at Spindletop, the dramatic beginning of the oil industry in Texas. 885 14 The boom town of Beaumont, near Spindletop, whose prostitutes were arrested and then displayed on the balcony of the Crosby House. Each woman's fine was announced, and the man who paid it could keep her for twenty-four hours 885 15 The French Rothschilds, led by Baron Alphonse (said to own the finest moustache in Europe) pioneered the development of the vast oil resources of Russia in competition with members of another famous family, the Nobels. 886 16 The young Joseph Stalin fomented strikes and insurrection among the oil workers of Baku in the early 1900s. Forty years later, as leader of the Soviet Union, he would fiercely defend the same oil fields from the invading Germans. 886 17 The Baku oil fields, set ablaze during the Revolution of 1905. Political and social upheaval eventually drove the Rothschilds and the Nobels out of Russia. 886 18 Marcus Samuel, the London merchant who conceived and executed the great coup of 1892 that broke Standard Oil's grip on the worldwide kerosene market. 887 19 A shell box of the type that Marcus Samuel's father sold at Victorian seaside resorts. In honor of his father, Samuel named his new venture "Shell." 887 20 The discovery of oil in the jungle at Telaga Said beginning in 1885, on the island of Sumatra in the Dutch East Indies, made Royal Dutch a major competitor in world markets. 887 21 Henri Deterding, the "pushing fellow" who forged the merger of Royal Dutch with Shell and for the next quarter century was the world's most powerful oil man. 887 22 Henry Ford sitting in the first car he built in 1896. The automobile created a new market for oil just as the industry was losing its main market—for kerosene—to Thomas Edison's innovations in electricity. 888 23 Automobile races kindled wild enthusiasm for the new invention. The winner of this race, in 1905, made the 4400-mile trip from New York City to Portland, Oregon, in exactly 44 days. 888 24 By 1909, when auto lovers went motoring, no one any longer shouted "Get a horse!" 888 25 A "capitalist of the highest order," English financier William Knox D'Arcy acquired the huge Persian concession in 1901. 889 26 The extravagant Shah Muzaffar al-Din of Persia was eager to sell an oil concession, even if there was no oil, because he "wanted some ready money." 889 27 After five years of drudgery and disappointment, the engineer George Reynolds (left)— "solid English oak "—finally discovered oil in Persia in 1908, opening up oil development in the Middle East. 889 28 First Lord of the Admiralty Winston Churchill in 1911 with Admiral Jacky Fisher (right), the "oil maniac" who persuaded Churchill to convert the Royal Navy from coal to oil in preparation for a war with Germany. 890 29 In September 1914, as the huge German army closed in on Paris, the French commandeered the city's taxicabs to rush additional troops to the front. Oil had gone to war. 890 30, 31 The rapid mechanization of the battlefield in World War I, including the tank and airplane, brought a new mobility to war and made oil an essential strategic commodity. 890 32 In 1919, Captain Dwight Eisenhower led an Army expedition through "darkest America" to dramatize the need for roads suitable for the new automotive age. Sometimes the convoy could do no more than six miles an hour. 891 33 A motorist fills up at a service station in Fargo, North Dakota, while gasoline is delivered to the station in a dependable horse-drawn wagon. 891 34 America's love affair with the automobile began in earnest in the 1920s when gasoline was abundant—and cheap. 891 35 The 1920s saw the birth of the secular temple of modern American civilization—the drive-in gasoline station. This is opening day at Phillips's first gasoline station in Wichita, Kansas, 1927. 892 36, 37, 38 Oil companies promoted brand names and trademarks in the 1920s to differentiate their products and win customer loyalty. 892 39 Calouste Gulbenkian, the wily and tenacious "Mr. Five Percent," became immensely rich by defending his interests in Iraqi oil. He always kept at least one mistress under the age of 18, even in his 80s, because his doctor insisted it was necessary to maintain his vigor. 893 40 John Cadman, chairman of Anglo-Iranian (later British Petroleum), at the airport in Tehran in 1933. He had just rescued his company's concession in Iran, which had been summarily nationalized by Shah Reza Pahlavi. 893 41 Standard Oil of New Jersey (later Exxon) emerged from the breakup of the Standard Oil Trust as America's biggest and most powerful oil company. It was dominated by "The Boss," Walter Teagle, grandson of Rockefeller's original partner. 893 42 The geologist Everette Lee DeGolyer, sitting on a porch near Tampico after his discovery in 1910 of what became Mexico's Golden Lane. By 1921, Mexico was the world's second largest oil producer. 894 43 The great "oil hunt" after World War I led to the Los Barroso gusher in 1922 and the Venezuelan oil boom. 894 44 Venezuela's Lake Maracaibo became one of the world's great oil sources, even though drilling was considered so risky that oil men joked about going into the fishing business. 894 45 As boom followed boom in Oklahoma in the late 1920s, mud was the only thing that could slow down the movement of men and oil. 895 46 Dad Joiner, promoter and wildcatter, shakes hands with the corpulent Doc Lloyd just after discovering the huge East Texas oil field on October 3, 1930. H. L. Hunt (smoking a cigar) rescued Joiner from financial difficulties—and in the process acquired his immensely valuable leases. 895 47 King Ibn Saud, founder of modern Saudi Arabia. When he began his campaign to restore his dynasty, he could carry his entire treasury in the saddlebag of a camel. 896 48 "Jack" Philby—father of spy Kim Philby—persuaded Ibn Saud in 1930 to open the doors of his country to oil exploration. Initially, the King would have preferred to find water. 896 49 Japanese noodle vendor Kokichi Mikimoto's success in developing cultured pearls in the late 1920s devastated the pearl-diving industry of Kuwait, forcing the tiny country to look to oil exploration for an alternative source of revenues. 896 50 President Lazaro Cardenas, announcing the expropriation of the foreign petroleum companies in Mexico on March 18, 1938—and fueling the bitter conflict between the producing countries and the international oil industry. 896 51 Adolf Hitler made oil central to his plans for conquest in World War II. His ill-conceived invasion of the Soviet Union was halted just short of the rich oil resources of the Caucasus. 897 52 General Erwin Rommel, the master of mobile warfare, swept across North Africa, planning to join forces with the German invaders of the Caucasus. Later, as the battle turned against him, he wrote to his wife, "Shortage of petrol! It's enough to make one weep." 897 53, 54 The opening of the Magdeburg synthetic fuels plant in 1937 (left). Such fuels provided more than half of Germany's total oil supply during the war. The same plant (right) after three thousand bombs were dropped on it by Allied bombers. 897 55 Oil was also central to Japanese strategy in the war in the Far East. Admiral Isoroku Yamamoto planned the attack on Pearl Harbor to protect Japan's flank as it went for the oil of the East Indies. 898 56 Almost a year of preparation went into the assault, including the construction of a miniature Pearl Harbor. 898 57 The American strategy in the Pacific was elemental: cut off Japan's supply of oil. Here a Japanese tanker sinks after being hit by torpedoes from an American sub. 898 58 In 1941, the militarist general Hideki Tojo used the American oil embargo as the reason to attack Pearl Harbor. In 1945, with Japan devastated and defeated—and completely out of oil—he tried to commit suicide, unsuccessfully. 898 59 With victory in sight, Churchill and Roosevelt met in Quebec in September 1944. America's abundance of oil had been decisive in the battles in both Europe and the Pacific. 899 60 "The Old Curmudgeon," Roosevelt's Interior Secretary Harold Ickes, dominated America's oil policy for more than a decade and became "oil czar" in World War II. 899 61 General George Patton with Supreme Commander Eisenhower. When Patton's tanks ran out of fuel as he pursued the retreating Germans across France, he said bitterly, "If only I could steal some gas, I could win this war." 899 62 "Pump girls" in London, where, as in America, women took over at gasoline stations and other vital jobs when the men went to war. 899 63 King Ibn Saud met with President Franklin Roosevelt in 1945 aboard an American ship in the Suez Canal. The immensity of the oil riches of the Middle East was just beginning to be recognized. 900 64 Happy days are here again. Victory meant the end of gasoline rationing in the United States. 900 65, 66 As late as 1940, J. Edgar Hoover, director of the FBI, warned that "motels" were centers of vice and the "hot pillow trade," even though some advertised their moral probity. In postwar America, motels became welcome—and respectable—havens as millions of American families took to the roads. 901 67 A milkshake maker salesman with vision opened this, the first real McDonald's, in Des Plaines, outside Chicago, in 1955. 901 68 The drive-in became a central part of American life in the 1950s, for families—and for teenagers. Forty percent of marriages were proposed in automobiles. 902 69 Oil and petrochemicals became the bricks and mortar of the Hydrocarbon Age. "Shell girls" demonstrated plastic hula hoops atop Shell's headquarters in London in 1957. 902 70 Customers were dazzled by the auto industry's introduction of tail fins in the 1950s, no matter that the engines were "gas guzzlers." 902 71 Iranian Prime Minister Mohammed Mossadegh nationalized British Petroleum in 1951, setting off the first postwar oil crisis and unleashing political forces he could not control. 903 72 J. Paul Getty, taking along "Teach Yourself Arabic" tapes, met with King Saud in the desert shortly after the discovery that was to make Getty a billionaire. 903 73 George McGhee, the State Department's "infant prodigy," promoted the "fifty-fifty" profit split with Middle Eastern producers in 1950 to help save the oil companies from outright nationalization. 903 74 Gamal Abdel Nasser and Anthony Eden before Nasser nationalized the Suez Canal in 1956, triggering the second postwar oil crisis. 904 75 President Dwight Eisenhower, with Secretary of State John Foster Dulles, was so furious with the British-French invasion of Suez that he cut off emergency oil supplies to them and angrily declared that they could "boil in their own oil." 904 76 In 1957, General Charles DeGaulle, visiting France's new oil field in Algeria, declared, "In our destiny, this can change everything." France had long sought its own independent oil supply. 905 77 The Italian tycoon Enrico Mattei (left) risked the combined wrath of the major international oil companies when he made his deal with the Shah of Iran (right) in 1957. 905 78 The intrepid oil journalist Wanda Jablonski, here with Sheikh Shakbut of Abu Dhabi in 1956. 905 79 Jersey's chairman, Monroe Rathbone, holding a tiger's tail, unilaterally cut the price of oil in 1960 to counter a surge of Soviet oil sales. The result was OPEC. 906 80, 81 OPEC's two founding fathers: Abdullah Tariki, the "Red Sheikh" and first Saudi oil minister, and the Venezuelan oil minister, Juan Pablo Pérez Alfonzo. 906 82 King Faisal of Saudi Arabia and his protégé, oil minister Ahmed Zaki Yamani, during a negotiation with American oil men. 907 83 Dr. Armand Hammer built a puny, bankrupt oil company into the giant Occidental on the basis of the newly discovered oil riches of Libya. 907 84 The Yom Kippur War in 1973 sent gasoline prices soaring and Americans into gas lines. The same thing happened again in 1979, when the Shah of Iran fell from power. 908 85 Senator Henry Jackson put chagrined oil executives under oath at 1974 hearings, then accused them of making "obscene profits." 908 86 Japanese Prime Minister Masayoshi Ohira modeled the "energy conservation look" after the 1973 embargo. Though the fashion never caught on in Japan, energy conservation certainly did. 908 87 Richard Nixon's last hurrah. In June 1974, in the aftermath of the Yom Kippur War, he was cheered in the streets of Cairo. Two months later, he was forced to resign as President because of the Watergate scandal, which had crippled America's response to the 1973 oil crisis. 909 88 President Jimmy Carter and Energy Secretary James Schlesinger on an oil platform in the Gulf of Mexico, shortly after Carter described the energy challenge facing the United States as the "moral equivalent of war." 909 89 The Alaska pipeline, which took five years to win approval to build. 909 90 When Jimmy Carter greeted the Shah of Iran at the White House in 1978, tears came to their eyes—not from emotion, but from the tear gas used to break up demonstrations. 910 91 With the fall of the Shah, the Ayatollah Ruhollah Khomeini was deliriously greeted in Tehran when he returned from exile in February 1979. 910 92 The frenzied trading floor at the New York Mercantile Exchange, which became the center for establishing global oil prices after 1983. 911 93 Mesa's Boone Pickens (left) shakes hands with Gulf chairman Jimmy Lee in December 1983, in the midst of the fierce struggle for Gulf, one of the biggest of the big merger battles of the 1980s. 911 94 Just after midnight, on Good Friday, March 24, 1989, the supertanker Exxon Valdez went aground in Alaska's Prince William Sound, spilling 240,000 barrels of oil—and giving a great boost to the environmental movement. 911 95, 96 Oil man George Bush, then president of Zapata Off-Shore, with his son George, dedicating a new drilling rig in 1956. Thirty years later, in 1986, as Vice President, he met with Saudi Arabia's King Fahd, and in 1990, as President, he squared off against Saddam Hussein over Iraq's invasion of Kuwait and the struggle for Middle East oil. 912 97 Saddam Hussein, the Iraqi strongman who triggered the first post-Cold War oil crisis. 912 Prologue 13 Part I: The Founders 19 1 Oil on the Brain: The Beginning 21 To "Assuage Our Woes" 22 The Disappearing Professor 23 Price and Innovation 24 The "Colonel" 28 "The Light of the Age" 30 The First Boom 31 Boom and Bust 34 2 "Our Plan": John D. Rockefeller and the Combination of American Oil 37 "Methodical to an Extreme" 38 The Great Game 39 "Now Try Our Plan" 41 "War or Peace" 44 New Threats 45 The Independents Break Out: The First Long Distance Pipeline, Tidewater, 1879 46 The Trust 46 "The Wise Old Owl" 49 A Marvel to the Eye 52 "Buy All We Can Get" 53 The Upbuilder 56 3 Competitive Commerce 58 "The Walnut Money" 59 The Rise of Russian Oil 60 The Challenge to Standard Oil 63 The Son of the Shell Merchant 65 The Coup of 1892 67 Marcus Samuel's Coup: The Voyage of the Murex, 1892 71 The Alderman 72 "This Struggle to the Death" 73 Royal Dutch 75 "Dutch Obstacles" 77 4 The New Century 80 Markets Lost and Gained 80 Breakouts 82 Patillo Higgins's Dream 84 The Deal of the Century 88 Gulf: Not Saying "By Your Leave" 89 Sun: "To Know What to Do with It" 94 "Buckskin Joe" and Texaco 95 "How Can We Control It?" 97 5 The Dragon Slain 98 The Holding Company 99 The Successor: The Oil Enthusiast 100 "The Red Hot Event" 102 Rockefeller's "Lady Friend" 103 The Trust-Buster 108 The Suit 110 The Dissolution 112 The Liberation of Technology 113 The Winners 114 6 The Oil Wars: The Rise of Royal Dutch, the Fall of Imperial Russia 116 The Jungle 117 Shell Emerges 119 Royal Dutch in Trouble 120 "A Pushing Fellow" 121 The First Step Toward Combination 123 The "British Dutch"—and Asiatic 124 Deterding Triumphant 125 "The Group"—Samuel Surrenders 127 "To America!" 130 Russia in Turmoil 131 Return to Russia 134 7 "Beer and Skittles" in Persia 136 "A Capitalist of the Highest Order" 137 Russia Versus Britain 137 The First Go 140 "Every Purse Has Its Limits" 141 The "Syndicate of Patriots" 142 To the Fire Temple: Masjid-i-Suleiman 144 Opening Up The Middle East: Oil in Persia, 1901 146 Revolution in Tehran 147 Racing the Clock 148 The "Big Company": Anglo-Persian 150 8 The Fateful Plunge 152 "The God-father of Oil" 153 "Made in Germany" 154 Enter Churchill 155 Speed! 157 The Admiral Cracks the Nut 158 The Shell Menace 160 Aid for Anglo-Persian 161 A Victory for Oil 162 Part II: The Global Struggle 167 9 The Blood of Victory: World War I 169 The Taxi Armada 170 Internal Combustion at War 172 The War in the Air and at Sea 173 Anglo-Persian Versus Shell 175 "A Dearth of Petrol" 178 The Energy Czar 180 The Man with the Sledgehammer 181 Baku 184 Floating to Victory 185 10 Opening the Door on the Middle East: The Turkish Petroleum Company 186 Mr. Five Percent 187 "A First-Class War Aim" 190 Clemenceau and His Grocer 191 Amalgamation? 193 Reenter Churchill 194 Oil Shortage and the Open Door 196 "The Boss": Walter Teagle 198 Faisal of Iraq 202 The Architect 204 Toward the Red Line 205 The Red Line Agreement, July 1, 1928 207 11 From Shortage to Surplus: The Age of Gasoline 209 "A Century of Travel" 210 "The Magic of Gasoline" 211 The Tempest in the Teapot 213 The Colonel and the Liberty Bonds 218 Geophysics and Luck 220 The Tycoon 222 The Rising Tide 225 Emerging Competition 226 "Those Sunkist Sons of Bitches" 229 12 "The Fight for New Production" 231 Mexico's Golden Lane 231 General Gómez's Venezuelan "Hacienda" 235 The Great Migration of the 1920s: Mexico's Golden Lane to Venezuela's Lake Maracaibo 237 Duel with the Bolsheviks 239 In Search of a United Front 242 Price War 244 13 The Flood 246 The Black Giant 248 Anarchy in the Oil Field 250 The Reformer 254 The Government Acts 257 Stability 260 14 "Friends"—and Enemies 262 The Hand of the British Government 264 "The Problem of the Oil Industry" 265 Discord Within "Private Walls" 267 Nationalism 270 The Shah's New Terms 271 The Mexican Battle 273 "As Dead as Julius Caesar" 279 15 The Arabian Concessions: The World That Frank Holmes Made 282 Bahrain and the New York Sheikhs 284 Ibn Saud 285 The Sorcerer's Apprentice 288 The Negotiation 291 Kuwait 294 The "Sure Shot"? 300 The Blue Line Agreement 301 Discovery 302 Part III: War and Strategy 305 16 Japan's Road to War 307 "Shall We Trust Japan?" 308 The New Order in Asia 309 "Quarantine" 310 Japanese Advance and American Restrictions—The First Round 313 Quiet Conversations 315 Yamamoto's Gamble—"Doubtless I Will Die" 316 Embargo 318 "We Cannot Endure It" 321 "Dwindling Day by Day" 322 Pearl Harbor 325 The One Mistake 327 17 Germany's Formula for War 330 The Chemical Solution 331 Girding for War 334 The Russian Campaign: "My Generals Know Nothing About the Economic Aspects of War" 336 Operation Blau 338 War in Europe and North Africa 340 Rommel and the Revenge of the Quartermaster 341 Autarchy and Catastrophe 345 "The Primary Strategic Aim" 348 The Battle of the Bulge: Europe's Biggest Gas Station 350 "Twilight of the Gods" 351 18 Japan's Achilles' Heel 353 "Victory Drunk" 356 "The Adults' Hour" 357 The Battle of the Marus: The War of Attrition 359 "No Sense in Saving the Fleet" 361 War in the Pacific 362 The End of the Imperial Navy 364 A Fight to the Finish? 365 The Ambulance 368 19 The Allies' War 370 The Oil Czar: The Mobilization of American Supply 373 Trial by Sea: The Battle of the Atlantic 375 Domestic Push 379 Rationing—Through the Side Door 381 Innovation 384 "The Unforgiving Minute" 386 Part IV: The Hydrocarbon Age 391 20 The New Center of Gravity 393 "The Allies Have the Money" 395 "We're Running Out of Oil!" 397 The Policy of "Solidification" 398 "A Wrangle About Oil" 401 Quotas and Cartels 404 The "Twins" 405 "What Do We Do Now?" 407 21 The Postwar Petroleum Order 411 The Great Oil Deals: Aramco and the "Arabian Risk" 412 Erasing the Red Line 415 Gulbenkian Again 418 Kuwait 421 Iran 422 Europe's Energy Crisis 424 The Great Oil Deals: Middle East Consortia, 1951 425 To Market It Goes? 427 No Longer "Far Afield": The New Dimension of Security 429 The End of Energy Independence 430 22 Fifty-Fifty: The New Deal in Oil 433 Landlord and Tenant 433 Venezuela's Ritual Cleansing 435 The Neutral Zone 439 "The Best Hotel in Town" 441 Billionaire 445 "Retreat Is Inevitable" 447 The Watershed 450 23 "Old Mossy" and the Struggle for Iran 452 The Last Chance 454 "Old Mossy" 458 Plan Y 460 Averell in Wonderland 461 "Stand Firm, You Cads!"—The Farewell to Abadan 464 "A Splutter of Musketry" 466 "Luck Be a Lady Tonight" 469 "A Group of Companies" 472 The Oil Cartel Case 474 Building the Consortium 477 24 The Suez Crisis 481 The Nationalist: The Role Finds Its Hero 482 Code Word "de Lesseps": Nasser Moves 485 "We Had No Intention of Being Strangled to Death" 487 At the "Rhineland" Again—Twenty Years Later 488 Force Applied 491 Purgatory 493 The "Oil Lift" and the "Sugar Bowl": Surmounting the Crisis 495 The Exit of "Sir Eden" 497 The Future of Security: Pipelines Versus Tankers 498 To End the Suez Schism 499 25 The Elephants 501 A New Napoleon 503 Mattei's Greatest Battle 505 Japan Enters the Middle East 507 Even the Americans... 509 Nasser Ascendant 510 Juan Pablo Pérez Alfonzo 512 The "Red Sheikh" 515 Competitive Pressures 516 The Arab Oil Congress 518 "Regards to All, Wanda" 519 26 OPEC and the Surge Pot 521 T Square Versus Slide Rule 522 "We've Done It!" 524 OPEC in the 1960s 525 "The New Frontier"—and More Elephants 527 The Libyan Jack-Pot 529 Mattei's Last Flight 532 The New Competitors 533 Walking the Tightrope—Iran Versus Saudi Arabia 534 "Us Independent Oil Suckers" 537 National Security and "a Nice Balance" 539 "A Very Healthy Domestic Industry" 540 27 Hydrocarbon Man 543 The Explosion 543 Old King Coal Deposed 545 The Conversion of Europe 546 Japan: No Longer Poor 547 The Struggle for Europe 548 Courting the Consumer 550 The New Way of Life: "Six Sidewalks to the Moon" 552 Crisis Again: "A Recurring Bad Dream" 556 The Cassandra at the Coal Board 560 Part V: The Battle For World Mastery 563 28 The Hinge Years: Countries Versus Companies 565 The Anglo-American Retreat 567 The End of the Twenty-Year Surplus: To a Seller's Market 569 Environmental Impact 570 The Alaskan Elephant 571 Alaskan Pipeline and Alternate Routes, Early 1970s 575 The Doctor 576 The Libyan Squeeze 579 Leapfrogging Prices 582 Participation: "Indissoluble, like a Catholic Marriage" 585 The Hinge Years 587 29 The Oil Weapon 590 The United States Joins the World Market 591 "The Wolf Is Here" 592 The Secret: Sadat's Gamble 594 The Oil Weapon Unsheathed: Faisal Changes His Mind 595 Nervous Leaders 599 September 1973: "Pressure All Around" 600 Nothing Further to Negotiate 601 Sadat's Surprise 604 "The Third Temple Is Going Under" 605 Embargo 608 The Third-Rate Burglary 611 Alert 613 30 "Bidding for Our Life" 615 "The Loss" 615 Panic at the Pump 617 "Beef Prices" 619 "Equal Misery" 621 A New World of Prices 627 Alliance Strained 628 Sheathing the Oil Weapon 632 31 OPEC's Imperium 635 Oil and the World Economy 636 The Saudis Versus the Shah 638 Yamani 641 America's Strategy 644 Kuwait and "Our Friends" 648 Venezuela: The Kitty Cat Died 650 Saudi Arabia: The Concession Surrendered 653 32 The Adjustment 655 Nations Respond 656 "Obscene Profits" 658 The United States Energy Policy: "Chinese Water Torture" 661 Boom Times 666 New Supplies: Alaska and Mexico 667 The North Sea: The Biggest Play of All 669 "The Crunch" 672 33 The Second Shock: The Great Panic 676 Disillusion and Opposition 676 "Doing the 40–40" 678 "Like Snow in Water" 679 "Torrents of Blood" 682 "I Am Feeling Tired" 683 The Last Man Out 685 Panic Begins 686 Force Majeure 689 Leapfrog and Scramble 691 "Living Dangerously" 693 Petroleum and the President 695 "The Worst of Times" 696 The Cat-and-Mouse Dialectic 698 "The World Crisis" 700 34 "We're Going Down" 701 "Death to America" 703 The Bazaar 705 The Second Battle of Qadisiyah: Iraq versus Iran 708 The End of the Road 713 35 Just Another Commodity? 717 The Fundamentals 719 Finally—the Cartel 720 "Our Price Is Too High..." 722 The Commodity Market 723 From Eggs to Oil 726 New Oil Wars: The Shootout at Value Gap 728 The Trigger 729 The Mexican Weekend 732 Dr. Drill 735 Family Matters 736 The Death of a Major 736 Shareholders' Value 742 The New Security 744 36 The Good Sweating: How Low Can It Go? 747 High or Low? 748 OPEC's Deepening Dilemma 748 Market Share 750 The Third Oil Shock 752 "A Little Action" 753 George Bush 755 "I Know I'm Correct" 757 "Hara-Kiri" and $18 a Barrel 760 Playing It by Ear 763 Price Restored 765 Iran Versus Iraq: The Tide Turns 766 Epilogue 771 Iraq Moves 772 Toward the Future 775 A New Order 777 The Third Environmental Wave 779 The Age of Oil 782 Chronology 784 Oil Prices and Production 787 Nominal Crude Oil Prices 787 Real Crude Oil Prices (1990 base year) 787 World Crude Oil Production 788 Nominal U.S. Gasoline Prices 788 Real U.S. Gasoline Prices (1990 base year) 788 Notes 789 Upstream, Downstream, All Around the Stream 789 Prologue 790 Part I: The Founders 790 1 Oil on the Brain: The Beginning 790 2 "Our Plan": John D. Rockefeller and the Combination of American Oil 791 3 Competitive Commerce 793 4 The New Century 794 5 The Dragon Slain 795 6 The Oil Wars: The Rise of Royal Dutch, the Fall of Imperial Russia 797 7 "Beer and Skittles" in Persia 798 8 The Fateful Plunge 799 Part II: The Global Struggle 800 9 The Blood of Victory: World War I 800 10 Opening the Door on the Middle East: The Turkish Petroleum Company 802 11 From Shortage to Surplus: The Age of Gasoline 804 12 "The Fight for New Production" 806 13 The Flood 808 14 "Friends"—and Enemies 809 15 The Arabian Concessions: The World That Frank Holmes Made 811 Part III: War and Strategy 813 16 Japan's Road to War 813 17 Germany's Formula for War 816 18 Japan's Achilles' Heel 819 19 The Allies' War 820 Part IV: The Hydrocarbon Age 824 20 The New Center of Gravity 824 21 The Postwar Petroleum Order 826 22 Fifty-Fifty: The New Deal in Oil 828 23 "Old Mossy" and the Struggle for Iran 829 24 The Suez Crisis 832 25 The Elephants 835 26 OPEC and the Surge Pot 837 27 Hydrocarbon Man 838 Part V: The Battle For World Mastery 839 28 The Hinge Years: Countries Versus Companies 839 29 The Oil Weapon 841 30 "Bidding for Our Life" 842 31 OPEC's Imperium 843 32 The Adjustment 844 33 The Second Shock: The Great Panic 845 34 "We're Going Down" 846 35 Just Another Commodity? 847 36 The Good Sweating: How Low Can It Go? 848 Epilogue 849 Bibliography 850 Interviews 850 Archives 852 Other Manuscript Collections 853 Oral Histories 853 Other 854 Government Documents 854 Selected Books, Articles, and Dissertations 856 A 856 B 856 C 858 D 859 E 860 F 860 G 861 H 862 I 864 J 864 K 865 L 866 M 867 N 868 O 869 P 869 Q 869 R 870 S 871 T 872 U 872 V 873 W 873 Y 874 Z 874 Data Sources 874 Acknowledgments 876 Photo Credits 879 Index 913 A 913 B 915 C 916 D 918 E 919 F 920 G 921 H 922 I 923 J 925 K 925 L 926 M 927 N 928 O 930 P 933 Q 934 R 934 S 937 T 940 U 942 V 942 W 942 Y 943 Z 944 About the Author 945 history;,petroleum,industry;,World,War,I;,World,War,II;,world,politics history,petroleum industry,World War I,World War II,world politics Cover......Page 1 Copyright page......Page 8 Contents......Page 11 List Of Illustrations ......Page 0 The Trust......Page 46 Marcus Samuel's Coup: The Voyage of the Murex, 1892......Page 71 Opening Up The Middle East: Oil in Persia, 1901......Page 146 The Red Line Agreement, July 1, 1928......Page 207 The Great Migration of the 1920s: Mexico's Golden Lane to Venezuela's Lake Maracaibo......Page 237 War in Europe and North Africa......Page 340 War in the Pacific......Page 362 The Great Oil Deals: Middle East Consortia, 1951......Page 425 Alaskan Pipeline and Alternate Routes, Early 1970s......Page 575 1 "Colonel" Edwin Drake, in top hat, stands in front of the first oil well near Titusville, Pennsylvania, in 1859. The title of "Colonel" had been invented to impress the local backwoodsmen, who thought Drake was crazy for trying to drill for oil.......Page 881 4 The Shoe and Leather Petroleum Company, foreground, at Oil Creek, Pennsylvania, in 1865.......Page 882 7 Arthur Bates, an oil dealer in Geneva, Ohio, delivered kerosene—the "new light "—door-to-door from his horse-drawn tank wagon.......Page 883 11 The trust was busted. The headlines the day after the Supreme Court decision of May 15, 1911.......Page 884 14 The boom town of Beaumont, near Spindletop, whose prostitutes were arrested and then displayed on the balcony of the Crosby House. Each woman's fine was announced, and the man who paid it could keep her for twenty-four hours......Page 885 17 The Baku oil fields, set ablaze during the Revolution of 1905. Political and social upheaval eventually drove the Rothschilds and the Nobels out of Russia.......Page 886 21 Henri Deterding, the "pushing fellow" who forged the merger of Royal Dutch with Shell and for the next quarter century was the world's most powerful oil man.......Page 887 24 By 1909, when auto lovers went motoring, no one any longer shouted "Get a horse!"......Page 888 27 After five years of drudgery and disappointment, the engineer George Reynolds (left)— "solid English oak "—finally discovered oil in Persia in 1908, opening up oil development in the Middle East.......Page 889 30, 31 The rapid mechanization of the battlefield in World War I, including the tank and airplane, brought a new mobility to war and made oil an essential strategic commodity.......Page 890 34 America's love affair with the automobile began in earnest in the 1920s when gasoline was abundant—and cheap.......Page 891 36, 37, 38 Oil companies promoted brand names and trademarks in the 1920s to differentiate their products and win customer loyalty.......Page 892 41 Standard Oil of New Jersey (later Exxon) emerged from the breakup of the Standard Oil Trust as America's biggest and most powerful oil company. It was dominated by "The Boss," Walter Teagle, grandson of Rockefeller's original partner.......Page 893 44 Venezuela's Lake Maracaibo became one of the world's great oil sources, even though drilling was considered so risky that oil men joked about going into the fishing business.......Page 894 46 Dad Joiner, promoter and wildcatter, shakes hands with the corpulent Doc Lloyd just after discovering the huge East Texas oil field on October 3, 1930. H. L. Hunt (smoking a cigar) rescued Joiner from financial difficulties—and in the process acquired his immensely valuable leases.......Page 895 50 President Lazaro Cardenas, announcing the expropriation of the foreign petroleum companies in Mexico on March 18, 1938—and fueling the bitter conflict between the producing countries and the international oil industry.......Page 896 53, 54 The opening of the Magdeburg synthetic fuels plant in 1937 (left). Such fuels provided more than half of Germany's total oil supply during the war. The same plant (right) after three thousand bombs were dropped on it by Allied bombers.......Page 897 58 In 1941, the militarist general Hideki Tojo used the American oil embargo as the reason to attack Pearl Harbor. In 1945, with Japan devastated and defeated—and completely out of oil—he tried to commit suicide, unsuccessfully.......Page 898 62 "Pump girls" in London, where, as in America, women took over at gasoline stations and other vital jobs when the men went to war.......Page 899 64 Happy days are here again. Victory meant the end of gasoline rationing in the United States.......Page 900 67 A milkshake maker salesman with vision opened this, the first real McDonald's, in Des Plaines, outside Chicago, in 1955.......Page 901 70 Customers were dazzled by the auto industry's introduction of tail fins in the 1950s, no matter that the engines were "gas guzzlers."......Page 902 73 George McGhee, the State Department's "infant prodigy," promoted the "fifty-fifty" profit split with Middle Eastern producers in 1950 to help save the oil companies from outright nationalization.......Page 903 75 President Dwight Eisenhower, with Secretary of State John Foster Dulles, was so furious with the British-French invasion of Suez that he cut off emergency oil supplies to them and angrily declared that they could "boil in their own oil."......Page 904 78 The intrepid oil journalist Wanda Jablonski, here with Sheikh Shakbut of Abu Dhabi in 1956.......Page 905 80, 81 OPEC's two founding fathers: Abdullah Tariki, the "Red Sheikh" and first Saudi oil minister, and the Venezuelan oil minister, Juan Pablo Pérez Alfonzo.......Page 906 83 Dr. Armand Hammer built a puny, bankrupt oil company into the giant Occidental on the basis of the newly discovered oil riches of Libya.......Page 907 86 Japanese Prime Minister Masayoshi Ohira modeled the "energy conservation look" after the 1973 embargo. Though the fashion never caught on in Japan, energy conservation certainly did.......Page 908 89 The Alaska pipeline, which took five years to win approval to build.......Page 909 91 With the fall of the Shah, the Ayatollah Ruhollah Khomeini was deliriously greeted in Tehran when he returned from exile in February 1979.......Page 910 94 Just after midnight, on Good Friday, March 24, 1989, the supertanker Exxon Valdez went aground in Alaska's Prince William Sound, spilling 240,000 barrels of oil—and giving a great boost to the environmental movement.......Page 911 97 Saddam Hussein, the Iraqi strongman who triggered the first post-Cold War oil crisis.......Page 912 Prologue......Page 13 Part I: The Founders......Page 19 1 Oil on the Brain: The Beginning......Page 21 To "Assuage Our Woes"......Page 22 The Disappearing Professor......Page 23 Price and Innovation......Page 24 The "Colonel"......Page 28 "The Light of the Age"......Page 30 The First Boom......Page 31 Boom and Bust......Page 34 2 "Our Plan": John D. Rockefeller and the Combination of American Oil......Page 37 "Methodical to an Extreme"......Page 38 The Great Game......Page 39 "Now Try Our Plan"......Page 41 "War or Peace"......Page 44 New Threats......Page 45 "The Wise Old Owl"......Page 49 A Marvel to the Eye......Page 52 "Buy All We Can Get"......Page 53 The Upbuilder......Page 56 3 Competitive Commerce......Page 58 "The Walnut Money"......Page 59 The Rise of Russian Oil......Page 60 The Challenge to Standard Oil......Page 63 The Son of the Shell Merchant......Page 65 The Coup of 1892......Page 67 The Alderman......Page 72 "This Struggle to the Death"......Page 73 Royal Dutch......Page 75 "Dutch Obstacles"......Page 77 Markets Lost and Gained......Page 80 Breakouts......Page 82 Patillo Higgins's Dream......Page 84 The Deal of the Century......Page 88 Gulf: Not Saying "By Your Leave"......Page 89 Sun: "To Know What to Do with It"......Page 94 "Buckskin Joe" and Texaco......Page 95 "How Can We Control It?"......Page 97 5 The Dragon Slain......Page 98 The Holding Company......Page 99 The Successor: The Oil Enthusiast......Page 100 "The Red Hot Event"......Page 102 Rockefeller's "Lady Friend"......Page 103 The Trust-Buster......Page 108 The Suit......Page 110 The Dissolution......Page 112 The Liberation of Technology......Page 113 The Winners......Page 114 6 The Oil Wars: The Rise of Royal Dutch, the Fall of Imperial Russia......Page 116 The Jungle......Page 117 Shell Emerges......Page 119 Royal Dutch in Trouble......Page 120 "A Pushing Fellow"......Page 121 The First Step Toward Combination......Page 123 The "British Dutch"—and Asiatic......Page 124 Deterding Triumphant......Page 125 "The Group"—Samuel Surrenders......Page 127 "To America!"......Page 130 Russia in Turmoil......Page 131 Return to Russia......Page 134 7 "Beer and Skittles" in Persia......Page 136 Russia Versus Britain......Page 137 The First Go......Page 140 "Every Purse Has Its Limits"......Page 141 The "Syndicate of Patriots"......Page 142 To the Fire Temple: Masjid-i-Suleiman......Page 144 Revolution in Tehran......Page 147 Racing the Clock......Page 148 The "Big Company": Anglo-Persian......Page 150 8 The Fateful Plunge......Page 152 "The God-father of Oil"......Page 153 "Made in Germany"......Page 154 Enter Churchill......Page 155 Speed!......Page 157 The Admiral Cracks the Nut......Page 158 The Shell Menace......Page 160 Aid for Anglo-Persian......Page 161 A Victory for Oil......Page 162 Part II: The Global Struggle......Page 167 9 The Blood of Victory: World War I......Page 169 The Taxi Armada......Page 170 Internal Combustion at War......Page 172 The War in the Air and at Sea......Page 173 Anglo-Persian Versus Shell......Page 175 "A Dearth of Petrol"......Page 178 The Energy Czar......Page 180 The Man with the Sledgehammer......Page 181 Baku......Page 184 Floating to Victory......Page 185 10 Opening the Door on the Middle East: The Turkish Petroleum Company......Page 186 Mr. Five Percent......Page 187 "A First-Class War Aim"......Page 190 Clemenceau and His Grocer......Page 191 Amalgamation?......Page 193 Reenter Churchill......Page 194 Oil Shortage and the Open Door......Page 196 "The Boss": Walter Teagle......Page 198 Faisal of Iraq......Page 202 The Architect......Page 204 Toward the Red Line......Page 205 11 From Shortage to Surplus: The Age of Gasoline......Page 209 "A Century of Travel"......Page 210 "The Magic of Gasoline"......Page 211 The Tempest in the Teapot......Page 213 The Colonel and the Liberty Bonds......Page 218 Geophysics and Luck......Page 220 The Tycoon......Page 222 The Rising Tide......Page 225 Emerging Competition......Page 226 "Those Sunkist Sons of Bitches"......Page 229 Mexico's Golden Lane......Page 231 General Gómez's Venezuelan "Hacienda"......Page 235 Duel with the Bolsheviks......Page 239 In Search of a United Front......Page 242 Price War......Page 244 13 The Flood......Page 246 The Black Giant......Page 248 Anarchy in the Oil Field......Page 250 The Reformer......Page 254 The Government Acts......Page 257 Stability......Page 260 14 "Friends"—and Enemies......Page 262 The Hand of the British Government......Page 264 "The Problem of the Oil Industry"......Page 265 Discord Within "Private Walls"......Page 267 Nationalism......Page 270 The Shah's New Terms......Page 271 The Mexican Battle......Page 273 "As Dead as Julius Caesar"......Page 279 15 The Arabian Concessions: The World That Frank Holmes Made......Page 282 Bahrain and the New York Sheikhs......Page 284 Ibn Saud......Page 285 The Sorcerer's Apprentice......Page 288 The Negotiation......Page 291 Kuwait......Page 294 The "Sure Shot"?......Page 300 The Blue Line Agreement......Page 301 Discovery......Page 302 Part III: War and Strategy......Page 305 16 Japan's Road to War......Page 307 "Shall We Trust Japan?"......Page 308 The New Order in Asia......Page 309 "Quarantine"......Page 310 Japanese Advance and American Restrictions—The First Round......Page 313 Quiet Conversations......Page 315 Yamamoto's Gamble—"Doubtless I Will Die"......Page 316 Embargo......Page 318 "We Cannot Endure It"......Page 321 "Dwindling Day by Day"......Page 322 Pearl Harbor......Page 325 The One Mistake......Page 327 17 Germany's Formula for War......Page 330 The Chemical Solution......Page 331 Girding for War......Page 334 The Russian Campaign: "My Generals Know Nothing About the Economic Aspects of War"......Page 336 Operation Blau......Page 338 Rommel and the Revenge of the Quartermaster......Page 341 Autarchy and Catastrophe......Page 345 "The Primary Strategic Aim"......Page 348 The Battle of the Bulge: Europe's Biggest Gas Station......Page 350 "Twilight of the Gods"......Page 351 18 Japan's Achilles' Heel......Page 353 "Victory Drunk"......Page 356 "The Adults' Hour"......Page 357 The Battle of the Marus: The War of Attrition......Page 359 "No Sense in Saving the Fleet"......Page 361 The End of the Imperial Navy......Page 364 A Fight to the Finish?......Page 365 The Ambulance......Page 368 19 The Allies' War......Page 370 The Oil Czar: The Mobilization of American Supply......Page 373 Trial by Sea: The Battle of the Atlantic......Page 375 Domestic Push......Page 379 Rationing—Through the Side Door......Page 381 Innovation......Page 384 "The Unforgiving Minute"......Page 386 Part IV: The Hydrocarbon Age......Page 391 20 The New Center of Gravity......Page 393 "The Allies Have the Money"......Page 395 "We're Running Out of Oil!"......Page 397 The Policy of "Solidification"......Page 398 "A Wrangle About Oil"......Page 401 Quotas and Cartels......Page 404 The "Twins"......Page 405 "What Do We Do Now?"......Page 407 21 The Postwar Petroleum Order......Page 411 The Great Oil Deals: Aramco and the "Arabian Risk"......Page 412 Erasing the Red Line......Page 415 Gulbenkian Again......Page 418 Kuwait......Page 421 Iran......Page 422 Europe's Energy Crisis......Page 424 To Market It Goes?......Page 427 No Longer "Far Afield": The New Dimension of Security......Page 429 The End of Energy Independence......Page 430 Landlord and Tenant......Page 433 Venezuela's Ritual Cleansing......Page 435 The Neutral Zone......Page 439 "The Best Hotel in Town"......Page 441 Billionaire......Page 445 "Retreat Is Inevitable"......Page 447 The Watershed......Page 450 23 "Old Mossy" and the Struggle for Iran......Page 452 The Last Chance......Page 454 "Old Mossy"......Page 458 Plan Y......Page 460 Averell in Wonderland......Page 461 "Stand Firm, You Cads!"—The Farewell to Abadan......Page 464 "A Splutter of Musketry"......Page 466 "Luck Be a Lady Tonight"......Page 469 "A Group of Companies"......Page 472 The Oil Cartel Case......Page 474 Building the Consortium......Page 477 24 The Suez Crisis......Page 481 The Nationalist: The Role Finds Its Hero......Page 482 Code Word "de Lesseps": Nasser Moves......Page 485 "We Had No Intention of Being Strangled to Death"......Page 487 At the "Rhineland" Again—Twenty Years Later......Page 488 Force Applied......Page 491 Purgatory......Page 493 The "Oil Lift" and the "Sugar Bowl": Surmounting the Crisis......Page 495 The Exit of "Sir Eden"......Page 497 The Future of Security: Pipelines Versus Tankers......Page 498 To End the Suez Schism......Page 499 25 The Elephants......Page 501 A New Napoleon......Page 503 Mattei's Greatest Battle......Page 505 Japan Enters the Middle East......Page 507 Even the Americans.........Page 509 Nasser Ascendant......Page 510 Juan Pablo Pérez Alfonzo......Page 512 The "Red Sheikh"......Page 515 Competitive Pressures......Page 516 The Arab Oil Congress......Page 518 "Regards to All, Wanda"......Page 519 26 OPEC and the Surge Pot......Page 521 T Square Versus Slide Rule......Page 522 "We've Done It!"......Page 524 OPEC in the 1960s......Page 525 "The New Frontier"—and More Elephants......Page 527 The Libyan Jack-Pot......Page 529 Mattei's Last Flight......Page 532 The New Competitors......Page 533 Walking the Tightrope—Iran Versus Saudi Arabia......Page 534 "Us Independent Oil Suckers"......Page 537 National Security and "a Nice Balance"......Page 539 "A Very Healthy Domestic Industry"......Page 540 The Explosion......Page 543 Old King Coal Deposed......Page 545 The Conversion of Europe......Page 546 Japan: No Longer Poor......Page 547 The Struggle for Europe......Page 548 Courting the Consumer......Page 550 The New Way of Life: "Six Sidewalks to the Moon"......Page 552 Crisis Again: "A Recurring Bad Dream"......Page 556 The Cassandra at the Coal Board......Page 560 Part V: The Battle For World Mastery......Page 563 28 The Hinge Years: Countries Versus Companies......Page 565 The Anglo-American Retreat......Page 567 The End of the Twenty-Year Surplus: To a Seller's Market......Page 569 Environmental Impact......Page 570 The Alaskan Elephant......Page 571 The Doctor......Page 576 The Libyan Squeeze......Page 579 Leapfrogging Prices......Page 582 Participation: "Indissoluble, like a Catholic Marriage"......Page 585 The Hinge Years......Page 587 29 The Oil Weapon......Page 590 The United States Joins the World Market......Page 591 "The Wolf Is Here"......Page 592 The Secret: Sadat's Gamble......Page 594 The Oil Weapon Unsheathed: Faisal Changes His Mind......Page 595 Nervous Leaders......Page 599 September 1973: "Pressure All Around"......Page 600 Nothing Further to Negotiate......Page 601 Sadat's Surprise......Page 604 "The Third Temple Is Going Under"......Page 605 Embargo......Page 608 The Third-Rate Burglary......Page 611 Alert......Page 613 "The Loss"......Page 615 Panic at the Pump......Page 617 "Beef Prices"......Page 619 "Equal Misery"......Page 621 A New World of Prices......Page 627 Alliance Strained......Page 628 Sheathing the Oil Weapon......Page 632 31 OPEC's Imperium......Page 635 Oil and the World Economy......Page 636 The Saudis Versus the Shah......Page 638 Yamani......Page 641 America's Strategy......Page 644 Kuwait and "Our Friends"......Page 648 Venezuela: The Kitty Cat Died......Page 650 Saudi Arabia: The Concession Surrendered......Page 653 32 The Adjustment......Page 655 Nations Respond......Page 656 "Obscene Profits"......Page 658 The United States Energy Policy: "Chinese Water Torture"......Page 661 Boom Times......Page 666 New Supplies: Alaska and Mexico......Page 667 The North Sea: The Biggest Play of All......Page 669 "The Crunch"......Page 672 Disillusion and Opposition......Page 676 "Doing the 40–40"......Page 678 "Like Snow in Water"......Page 679 "Torrents of Blood"......Page 682 "I Am Feeling Tired"......Page 683 The Last Man Out......Page 685 Panic Begins......Page 686 Force Majeure......Page 689 Leapfrog and Scramble......Page 691 "Living Dangerously"......Page 693 Petroleum and the President......Page 695 "The Worst of Times"......Page 696 The Cat-and-Mouse Dialectic......Page 698 "The World Crisis"......Page 700 34 "We're Going Down"......Page 701 "Death to America"......Page 703 The Bazaar......Page 705 The Second Battle of Qadisiyah: Iraq versus Iran......Page 708 The End of the Road......Page 713 35 Just Another Commodity?......Page 717 The Fundamentals......Page 719 Finally—the Cartel......Page 720 "Our Price Is Too High..."......Page 722 The Commodity Market......Page 723 From Eggs to Oil......Page 726 New Oil Wars: The Shootout at Value Gap......Page 728 The Trigger......Page 729 The Mexican Weekend......Page 732 Dr. Drill......Page 735 The Death of a Major......Page 736 Shareholders' Value......Page 742 The New Security......Page 744 36 The Good Sweating: How Low Can It Go?......Page 747 OPEC's Deepening Dilemma......Page 748 Market Share......Page 750 The Third Oil Shock......Page 752 "A Little Action"......Page 753 George Bush......Page 755 "I Know I'm Correct"......Page 757 "Hara-Kiri" and $18 a Barrel......Page 760 Playing It by Ear......Page 763 Price Restored......Page 765 Iran Versus Iraq: The Tide Turns......Page 766 Epilogue......Page 771 Iraq Moves......Page 772 Toward the Future......Page 775 A New Order......Page 777 The Third Environmental Wave......Page 779 The Age of Oil......Page 782 Chronology......Page 784 Real Crude Oil Prices (1990 base year)......Page 787 Real U.S. Gasoline Prices (1990 base year)......Page 788 Upstream, Downstream, All Around the Stream......Page 789 1 Oil on the Brain: The Beginning......Page 790 2 "Our Plan": John D. Rockefeller and the Combination of American Oil......Page 791 3 Competitive Commerce......Page 793 4 The New Century......Page 794 5 The Dragon Slain......Page 795 6 The Oil Wars: The Rise of Royal Dutch, the Fall of Imperial Russia......Page 797 7 "Beer and Skittles" in Persia......Page 798 8 The Fateful Plunge......Page 799 9 The Blood of Victory: World War I......Page 800 10 Opening the Door on the Middle East: The Turkish Petroleum Company......Page 802 11 From Shortage to Surplus: The Age of Gasoline......Page 804 12 "The Fight for New Production"......Page 806 13 The Flood......Page 808 14 "Friends"—and Enemies......Page 809 15 The Arabian Concessions: The World That Frank Holmes Made......Page 811 16 Japan's Road to War......Page 813 17 Germany's Formula for War......Page 816 18 Japan's Achilles' Heel......Page 819 19 The Allies' War......Page 820 20 The New Center of Gravity......Page 824 21 The Postwar Petroleum Order......Page 826 22 Fifty-Fifty: The New Deal in Oil......Page 828 23 "Old Mossy" and the Struggle for Iran......Page 829 24 The Suez Crisis......Page 832 25 The Elephants......Page 835 26 OPEC and the Surge Pot......Page 837 27 Hydrocarbon Man......Page 838 28 The Hinge Years: Countries Versus Companies......Page 839 29 The Oil Weapon......Page 841 30 "Bidding for Our Life"......Page 842 31 OPEC's Imperium......Page 843 32 The Adjustment......Page 844 33 The Second Shock: The Great Panic......Page 845 34 "We're Going Down"......Page 846 35 Just Another Commodity?......Page 847 36 The Good Sweating: How Low Can It Go?......Page 848 Epilogue......Page 849 Interviews......Page 850 Archives......Page 852 Oral Histories......Page 853 Government Documents......Page 854 B......Page 856 C......Page 858 D......Page 859 F......Page 860 G......Page 861 H......Page 862 J......Page 864 K......Page 865 L......Page 866 M......Page 867 N......Page 868 Q......Page 869 R......Page 870 S......Page 871 U......Page 872 W......Page 873 Data Sources......Page 874 Acknowledgments......Page 876 Photo Credits......Page 879 A......Page 913 B......Page 915 C......Page 916 D......Page 918 E......Page 919 F......Page 920 G......Page 921 H......Page 922 I......Page 923 K......Page 925 L......Page 926 M......Page 927 N......Page 928 O......Page 930 P......Page 933 R......Page 934 S......Page 937 T......Page 940 W......Page 942 Y......Page 943 Z......Page 944 About the Author......Page 945 Chronicles The History Of The Oil Industry And The Forces That Have Shaped The Modern World. Oil On The Brain: The Beginning -- Our Plan: John D. Rockefeller And The Combination Of American Oil -- Competitive Commerce -- New Century -- Dragon Slain -- Oil Wars: The Rise Of Royal Dutch, The Fall Of Imperial Russia -- Beer And Skittles In Persia -- Fateful Plunge -- Blood Of Victory: World War I -- Opening The Door On The Middle East: The Turkish Petroleum Company -- From Shortage To Surplus: The Age Of Gasoline -- Fight For New Production -- Flood -- Friends And Enemies -- Arabian Concessions: The World That Frank Holmes Made -- Japan's Road To War -- Germany's Formula For War -- Japan's Achilles' Heel -- New Center Of Gravity -- Postwar Petroleum Order -- Fifty-fifty: The New Deal In Oil -- Old Mossy And The Struggle For Iran -- Suez Crisis -- Elephants -- Opec And The Surge Pot -- Hydrocarbon Man -- Hinge Years: Countries Versus Companies -- Oil Weapon -- Bidding For Our Life-- Opec's Imperium -- Adjustment -- Second Shock: The Great Panic -- We're Going Down -- Just Another Commodity? -- Good Sweating: How Low Can It Go? Daniel Yergin. Includes Bibliographical References (p. [848]-873) And Index. George S. Eccles Prize For Economic Writing New York Times Book Review Notable Books Of The Year Library Journal Best Books Pulitzer Prize For General Nonfiction