It also offers the Saudi military protection

The most beautiful commercial transaction of all time. "So the officials of the Department of State in Washington spoke of the Saudi Arabian American Oil Company (Aramco), the American oil company founded in the early 1930s to exploit black gold. In fact, until its partial nationalisation in 1974, prelude to control full by the Saudi Government in 1980, the Aramco symbolized American control over the oil fields of the Middle East. More than a simple oil company, the Aramco was a real state in the State, with its own intelligence service, its entries to the royal palace and especially its connections in Washington. For forty years, the White House, State Department and the direction of the Aramco continued in effect the same objective: ensure the "pax americana" within the Kingdom of Saudi Arabia in order to preserve the highly strategic stream of black gold. This common purpose says the privileged relations which, even today, join the Kingdom of the Saud the United States.

This game to three bands between the Aramco, the Saudi and American authorities takes shape at the end of the second world war. US departure, in effect, Saudi Arabian adventure did had little attracted interest on the part U.S. authorities. In 1942, ten years after the creation of the Aramco, the Roosevelt administration had opposed estoppel to envoys of the company from seeking financial support for the King Ibn Saud, victim since the war of a fall in revenues. The American President wanted little offending his English allies. But the highly strategic oil, the pressures of the Aramco and Harold Ickes, the Adviser to the President for the oil business, and will strengthen the presence yet lately the Americans in the region grow finally the administration to support the action of the companies American dealers.

This strategic shift is its consecration on 14 February 1945, at the famous interview between Roosevelt and Ibn Saud aboard the Cruiser "uss quincy" wet just from the Suez canal. This day, the President of the United States does not only its counterpart the promise not to "take no decision on the question of Palestine without consulting the Jews and the Arabs", promise not to be held. It also offers the Saudi military protection. If the question of the granting of the Aramco is not directly referred to by the two heads of State, it is clearly in watermark of their discussions. The tie on the "Quincy" is in fact nothing other than pursuant to a broad exchange. An Exchange which takes in two words: us protection against Saudi oil.

Create a port at Dammam

In this Exchange, the Aramco plays with at the outset a key role. By the end of the 1940s, the company became the head of the Department of State Bridge in the Arabian peninsula. It is as much in Washington as their shareholders that the Aramco leaders accountable for their activities; Washington also quietly, they take their instructions "policies." In 1947, it will thus be seen State Department asked the company to conduct an investigation on the health of Ibn Saud. With the help of the CIA, the Aramco men will be introduced in the entourage of the sovereign with mission to retrieve and analyze its stool! Better yet: the driver of the King, the pilot of his private plane and even his Cook are paid by the Aramco. Each month, they provide a detailed account of the facts and actions of Ibn Saud, whose synthesis often ends up in the Office of the Secretary of State.

Washington at Dhahran, headquarters of Aramco in Saudi Arabia, on fears that a thing: from the death of the sovereign return in question the concession Treaty. He does not that the Americans are on Saudi soil "at the invitation of the King" A clause which, from being only an artifice of language for Arab clans most fundamentalists, because of the Saudi authorities the masters of the game. When the much dreaded event occurs, in 1953, the leaders of the Aramco and the Ambassador of the United States in Riyadh are quick to give their support to his successor, Saud, obtaining in return for assurances regarding the continuation of the grant. And when Saud was forced, in 1964, to abdicate after having emptied the crates of his Kingdom, the same support, on behalf of realpolitik, the Palace revolution led by Faisal.

Between the United States, the Aramco and the Royal family, complex relationships to build and very early on the mode of the giving, giving. Ibn Saud as its successors know indeed play perfectly from the ambiguities of the Treaty of concession for still more the Aramco. Horse-trading between the royal palace and the company, are continuing. In 1947, the King who wants to be paid in gold refuses the Aramco royalties because rates are negative. Under the terms of endless negotiations, Ibn Saud finally accepts the yellow metal of the American company. But he gets the crossing that it participates in the creation of a deep water port to Damman and the construction of a railway connecting Riyadh with it. Cost of the operation for the Aramco: $ 70 million! Over the years, the American company will thus contribute to the construction of a part of the infrastructure of the Kingdom. Even the creation of Israel, in 1947, and the question of Palestine do not undermine the very special relationship between the Americans and Saudis. They need too American money to go beyond simple protests. The Aramco, it will be left to replace Israeli oranges by fruit from Palestine... It is at the cost of countless compromise of this kind that the Aramco manages to maintain its position until the mid-1970s.

First deposit in Dhahran

All had yet started so badly! In May 1933, when, thanks to the intervention of the very anglophobe Harry Saint - John Philby, Standard Oil of California (Socal) Lady the pawn to the Iraq Petroleum Company and obtained a concession to operate the Saudi black gold, not a drop of oil was still found in the territory of the Kingdom. The case appears at this point not committed only in 1938, repugnant to pursue only an adventure that looks expensive, the Socal gives 50 of its shares

in the Texas Oil Company. Together both groups to create the California Arabian Standard Oil, renamed Aramco in 1944, together also conducting an extensive exploration campaign resulting finally in the discovery, in the same year 1938, a first deposit in Dhahran. Las! drilling have barely started just the second world war all questioning. For five years, the young Aramco is forced to implement its projects in parentheses.

The war ended, the two partners of the Aramco are facing a new challenge: to develop huge oil reserves in the region and, especially, evacuate under the best conditions of price black gold to the consumers of Europe and Asia areas, a pipeline connecting producers Saudi fields at a terminal located on the Eastern Mediterranean should be built. The cost of the operation $ 200 million is revealing too much for the two partners, they are required to bring two new companies in the capital of the Aramco: the Standard of New Jersey and Mobil Finalisé in 1947, this agreement still increases the influence of the American Petroleum in Saudi Arabia. It is primarily to carry out the construction of the Trans-Arabien pipeline (Tapline). Inaugurated in 1952 and has a capacity of 20 million tonnes per year, this line more 2,500 kilometres leading to the Lebanon facilitates the arrival of Saudi black gold in Europe. It also gives the Aramco means to massively exploit the oil of the Kingdom.

On-site, a man is specifically responsible for operations: Fred Davies. Born in 1893, a graduate of the Ecole des mines at the University of Minnesota, he joined the Socal in 1922 and gets on almost all the oil fields of the world, including Latin America. Appointed at the head of the Aramco in 1945 position he holds until 1959 , this authoritarian man but to end diplomatic qualities will be the great craftsman of the development of the company. Difficulties, however, abound. It needs to manage the relationship with the companies shareholders, the Royal family, the authorities of Washington... and the Saudis. Since their arrival on the spot, the Americans are indeed stationed in Dhahran, in a completely closed special zone which they cannot leave without permission and closely monitored the morals police. Do with extraterritoriality, the enclave is subject to the laws of the country. Alcohol, dancing and Western music are prohibited, which does not preclude some clandestine manufacture their own beverage fermented sugar and water. Western women should go out veiled, and the service cannot be ensured by male, from domestic India, the Yemen or Aden.

Upon arrival, Fred Davies strives to "clarify" the relations between the Americans and their hosts. To this end, it print and distribute a local practice guide to avoid any incident. "Do never ask a direct question to a Bedouin, start with: that peace be with you", he specified. By the mid-1950s, the enclave of Dhahran has become a real city, strong of more than 20,000 inhabitants all employed by the Aramco, with its air-conditioned houses and private gardens watered at great cost, with its swimming pool, its tennis courts and its lands for baseball to the expatriates. The gap in his working-class live approximately 16,000 people, most of Saudi nationality. Framed by Palestinian foremen, Saudi workers are generally paid in kind. Relations with their American employers are non-existent. The Saudis to positions of responsibility, they are the exception. A graduate of the University of Texas and married an American, Abdullah Tariki in will be bitter experience when a promotion and a heated House will be denied. Tariki was to remember: he would later participate in the creation of OPEC and prove to be one of the hottest supporters of the nationalization of the company.

Sharing rule

In the early 1950s, in large part by the action of Davies, the Aramco has become a highly profitable case. Of mental barrels per day barely in 1944, production has increased to about 600,000 barrels. It will reach 2 million barrels in the 1960s, before peaking at 8 million barrels per day in 1973, date on which the company will operate 50 deposits! At the royal palace in Riyadh, this oil manna began to raise the covetous. Repeatedly short of money, the King and his entourage agree more difficult to receive, in the form of royalties, 12 of the price. By the end of the 1940s, intensive negotiations are conducted between the company and the royal palace. The Saudis feel all the more force that there is already a precedent: the Venezuela. In 1943, the country received half of the profits made by the dealer. It is based on the rule of the 50-50 open discussions between the Aramco and Saudi Arabia. Initially decided to not release a hundred, the company is forced to do so on direct instruction of the Department of State. War of Korea, the United States do not wish to take the risk that the Saudi Kingdom switch in the Communist camp.

Signed in 1950, the new concession agreement assigns finally to the Saudis 50 of the profits made by the Aramco. That year, the Kingdom cash 110 million of $ 39 million a year earlier. The Aramco, however, does not lose to the Exchange. Very skilfully, the company has indeed obtained tax deductible from the tax payable in the United States, American that the royalties are assimilated to a tax on profits. The loser is so... the US tax authorities, in 1950, receiving more than $ 6 million, against 43 million the previous year. Expensive, privilege for geopolitical realities.

It is with this rule of sharing that the Aramco continued its operations to the partial nationalisation in 1974. But the compromises to the Venezuela and Saudi Arabia have created dangerous precedents. Across the Middle East, voices demanding the nationalization of the companies. In the early 1950s, it is Iran that is the most serious threat...