The International Petroleum Cartel, Staff Report to the Federal Trade Commission, released through Subcommittee on Monopoly of Select Committee on Small Business, U.S. Senate, 83d Cong., 2nd sess (Washington, DC, 1952), Chapter 1, "The World's Petroleum Resources," pp. 5-20.


CHAPTER I

THE WORLD'S PETROLEUM RESOURCES

Petroleum is an exhaustible natural resource; it is of fundamental importance to all phases of industrial activity and indispensable to industrial progress. At times it has been the subject of competition and rivalry; more frequently it has been the subject of agreement and international cartel arrangements. Over the years an international petroleum industry has developed, not only because of the importance of petroleum products. but also because these products are so standardized as to have almost universal acceptance, irrespective of the source of the crude from which they are derived.

WORLD'S RESERVES

The world's petroleum reserves are concentrated in a few countries. As of January 1, 1949, these reserves, excluding those of Russia, were estimated at 73.7 billion barrels, of which more than 90 percent or 69 billion barrels were in six countries: United States, Venezuela, Iran, Iraq, Kuwait, and Saudi Arabia. The following table shows the estimated proved reserves by geographical areas and by countries.

TABLE 1.-Estimated crude petroleum reserves for world, by areas and principal producing countries, Jan. 1, 1949
[In thousands of barrels]

Areas and principal countries

Estimated Reserves Percent of World Reserves
North America    

United States

28,000,000 35.75

Mexico

850,000 1.09

Canada

500,000 0.64

Other

3,000 --

Total

29,353,000 37.48
South America    

Venezuela

9,000,000 11.49

Colombia

300,000 0.38

Argentina

250,000 0.32

Trinidad

250,000 0.32

Peru

160,000 0.21

Other

70,000 0.09

Total

10,080,000 12.81
Europe (excluding USSR and countries under its control)    

Austria

75,000 0.10

Netherlands

50,000 0.06

Germany

45,000 0.06

Other

9,000 0.02

Total

179,000 0.24
Africa    

Egypt

120,000 0.16

Other

2,000 --

Total

122,000 0.15
Middle East    

Kuwait

10,950,000 13.98

Saudi Arabia

9,000,000 11.49

Iran

7,000,000 8.94

Iraq

5,000,000 6.39

Qatar

500,000 0.64

Bahrein

170,000 0.22

Other

76,000 0.08

Total

32,696,000 41.74
Far East    

Netherlands East Indies

1,000,000 1.28

British Borneo

150,000 0.19

Burma

50,000 0.06

New Guinea

50,000 0.06

Other

67,000 0.09

Total

1,317,000 1.68

Total above countries

73,697,000 94.11

Total world

78,322,000 100.00

The distribution of world reserves among the major geographical regions is as follows: 1

  Percent
Middle East
42
North America
37.5
South America
12.8
Russia and its European satellites
7
Far East
1.3
Western Europe, less than
0.5

Of the world's total crude reserves, including those of Russia, American companies control apporximately 63 percent, and if Russian-controlled reserves are excluded, the share rises to about 67 percent.

The most important discoveries of new reserves in recent years have been in the Middle East and in Canada. New Discoveries in Canada are epxpected to add more than 1 billion barrels to the total reserves of that coutnry, 2 while the tremendous new discoveries in the Middle East have made that area the most prolific potential supplier of oil in the world.

PRINCIPAL CRUDE PRODUCING AREAS OF THE WORLD

Crude petroelum in produced in more tha 40 countries, but in 1949, 7 countries accounted for about 85 percent of the world's total production. These seven countries were the United States, Venezuela, Iran, Saudi Arabia, Kuwait, Mexico, and Iraq. If the production of Russia and Russian-controlled countries is excluded, these seven countries produced more than 92 percent of the world's crude in 1949.

The production of crude is concentrated in three geographical areas: North America, South America, and the Middle East. In North America, the principal producers are the United States, Mexico, and Canada. In 1949, these three countries produced more than 57 percent of the world's total crude.

Table 2 gives world production in 1949 by country and by geographical area.

The United States has long been the world's most important producer of crude petroleum, and has maintained a relatively constant proportion since the turn of the century. For several years producuon in the United States has averaged about 60 percent of world oroduction. In 1949, however, this percentage declined to 54.7 percent.

In 1949, production in the United States averaged about 3 million barrels per day from more than 449,000 wells, or an average production of approximately 11 barrels per day per well. 3 In the average of barrels per well per day, the United States ranks far below most other important oil-producing countries.

In 1949, Mexico produced about 60 million barrels of crude, and hail seventh place among the important oil-producing countries of the world. Peak production in Mexico was reached in 1921, with 193 million barrels. At that time Mexico was the second largest crude producer in the world. However, production declined rapidly and reached a low of 33 million barrels in 1932. Since the end of World War II, production in Mexico has increased from 43 million to more than 60 million barrels annually. Daily output per well averaged about 160 barrels in 1949, nearly 15 times that of the United States.

TABLE 2 -- World crude oil production, 1949
[Annual average in thousands of barrels daily]

Country
1949
1948
1939
Percent increase:
1949 over 1948
Percent increase:
1949 over 1939
Canada
59.0
32.5
21.5
81.5
174.4
Cuba
0.4
0.3
0.3
33.3
33.3
Mexico
166.8
159.5
117.7
4.6
41.7
United States
5,043.0
5,512.0
3,465.6
-8.5
45.5

Total North America

5,269.2
5,704.3
3,605.1
-7.6
46.1
Argentina
63.0
64.8
51.1
-2.8
23.3
Bolivia
1.8
1.3
0.6
38.4
200.0
Brazil
0.3
0.4
--
-25.0
--
Colombia
82.3
64.9
65.6
26.8
25.6
Ecuador
7.3
7.0
6.3
4.3
15.9
Peru
40.5
38.4
37.1
5.5
9.2
Trinidad
56.5
54.9
52.8
2.9
7.0
Venezuela
1,320.0
1,338.8
566.0
-1.4
133.2

Total South America

1,571.7
1,570.5
779.4
0.1
101.7
France
1.1
1.1
1.4
--
21.4
French Morocco
0.4
0.2
--
100.0
--
Germany
16.3
12.1
12.3
34.7
32.5
Italy
0.2
0.2
0.3
--
-33.3
Netherlands
11.8
9.4
--
25.5
--
Egypt
42.9
36.0
12.8
19.2
235.2
United Kingdom
0.9
0.9
--
--
--

Total Europe and Africa

73.6
59.9
26.8
22.9
174.6
Bahrein
30.0
29.8
20.8
0.7
44.2
Iran
552.0
518.5
214.0
6.5
157.9
Iraq
84.0
72.2
84.3
16.3
-0.4
Kuwait
245.0
127.2
--
92.6
--
Saudi Arabia
475.0
390.0
10.8
21.7
4,298.1

Total Middle East

1,386.0
1,138.0
329.9
21.3
320.1
British Borneo
68.0
55.0
19.5
23.6
248.7
Burma
0.5
0.5
21.6
--
-97.7
India
5.3
5.3
6.4
--
--
China
1.8
1.8
--
--
--
Indonesia
112.0
86.6
170.5
29.3
-34.3
Japan
3.7
3.1
7.3
19.4
-49.3
New Guinea
4.9
0.4
--
1,125.0
--
Pakistan
1.8
1.2
(1)
50.0
--

Total Other Asia (Far East)

198.0
153.9
225.3
28.7
-12.1

Total (Less Russia and Eastern Europe)

8,498.5
8,626.6
4,906.5
-1.5
71.1
Albania
2.5
1.0
2.6
150.0
-3.8
Austria
18.0
17.0
3.4
5.9
429.4
Czechoslovakia
0.9
0.5
0.3
80.0
200.0
Hungary
10.5
10.0
3.0
5.0
250.0
Poland
2.7
2.7
10.7
--
-74.8
Rumania
86.0
93.4
125.0
-7.9
-31.2
Russia
690.0
600.0
605.0
15.0
14.0
Yugoslavia
2.5
1.0
150.0
--
--

Total Russia and Eastern Europe

813.1
725.6
750.0
12.1
8.4

Total World

9,311.6
9,352.2
5,716.5
-0.4
62.9

(1) Included with India prior to 1947

Source: The Oil and Gas Journal, Jan. 26, 1950, p. 205

Canada is a relatively new addition to the list of important oil producing coutnires. Since 1947, many new oil fields have been discovered in Canada. These discoveries, coupled with additional developments of older fields, enabled Canada to produce at an average rate of 59,000 barrels per day in 1949. This was an increase of 174 percent over 1939, and 81.5 percent over 1948. As additional pipelines and refineries are constructed, and as the new fields are extended and developed, further increases in production may be realized.

Ranking second to the United States in production of crude is South America, especially the Venezuela-Caribbean area. In addition to Venezuela, which produced at the rate of about. 1,320,000 barrels daily in 1949, crude oil is produced in significant amounts in Colomibia, Argentina, Peru, and Trinidad. The total crude output of the latter four countries averaged 240,000 barrels per day in 1949. Total production in South America accounted for more than 16 percent of the world's output in 1949. 5

Proluction per wvell in the Venezuela-Caribbean area is generally much higher than in the United States, and is exceeded only by the wells of the Middle East. In 1919, the average production per well per day in Colombia was 69 barrels, in Argentina 47 barrels, in 'l'rinidad 25 barrels, in Peru 11 barrels, and in Venezuela--South Ainerica's most important crude producer--200 barrels. 6

The third important area of crude oil production is the Middle East, which includes Iran, Iraq, Saudi Arabia, Kuwait, and Bahrein. In 1949, about 15.5 percent of the world's ciude output was obtained from this area. The average daily rate of production for the five most important Middle East countries was close to 1,400,000 barrels daily. 7 Although oil was produced in the Middle East prior to World War I, it is only since World War II that. the Middle East has developed into an important potential supplier of the world's crude. The vast potential of this area is indicated by the fact that total production in 1949 came from only 287 wells, with an average output per well per day of 5,143 barrels. In Iraq, the average production per well per day was no less than 11,200 barrels, in Iran 2,190 barrels, in Saudi Arabia 6,083 barrels, and in Kuwait, almost. 4,450 barrels. 8 By drilling more wells and building more pipe lines, the Middle East could undoubtedly become the leading oil producing area of the world. Despite the difficulties in obtaining supplies and equipment during World 'War II, production increased 320 percent between 1939 and 1949.

In the Far East, the important producing countries are the Netherlands East indies and British Borneo, which, however, produced in 1949 only about 2 percent of world production. 9 This area has not fully recovered from war damage, and during the past year political disturbances have hampered operations.

Russia and Eastern Europe, including Rumania, produced about 8 percent of the world's crude in 1949, nearly all of which was used by countries under soviet influence.10

Although the world's production of crude petroleum is derived from the same areas and countries that have the crude reserves, a comparison of the distribution of reserves with crude production in 1949 reveals wide disparities in the relative positions of some countries, as is indicated in table 3.

It will be seen from table 3 that some countries are drawing on their reserves at a much faster rate than others. For example, in 1949, the United States produced about 55 percent of the world's crude but held only 35.8 percent of the world's crude reserves. The percentages of world production by Venezuela and Mexico also exceed their respective percentages of world reserves. On the other hand, Kuwait and the other major holders of reserves in the Middle East had a percentage of world production much below their percentage of world reserves. The Middle East, however, is developing rapidly, and its reserves, as well as its annual share of the world's crude production, are expected to increase in the future.

WORLD CRUDE OIL REFINING CAPACITY

A. country's ability to convert crude petroleum into usable products is indicated by its refining capacity. The statistical picture of refining capacity, crude runs to stills, and production is presented in table 4, by country and by geographical area for the year 1949.

TABLE 3.-Percent of world crude reserves and production, 1949

Country
Percent of estimated world reserves 1
Percent of world crude production 2
United States
35.8
54.65
Kuwait
14.0
2.67
Venezuela
11.5
13.58
Saudi Arabia
11.5
6.16
Iran
8.9
6.08
Iraq
6.4
0.94
Netherlands East Indies
1.3
0.21
Mexico
1.1
1.80
Total
90.5
85.09
All other countries
9.5
14.91
Grand total
100.0
100.0

1. Source: DeOolyer and MacNaughton, Twentieth Century Petroleum Statistics, 1949, p. 4. (For comments on the accuracy of these estimates see p. 3, footnote 1.)
2. Source: World Oil, July 15, 1950, p. 42.


TABLE No. 4.-World crude oil refining capacity, crude runs to stills and production, 1949, by country and geographical area
[In thousands of barrels dailyj

Country

Crude refining capacity barrels
daily as of July 1, 1950 (1)

Crude runs to stills 1949 (2)
Production 1949 (2)
North America

Canada

341,550
263,216
57,562

Cuba

6,080
5,389
477

Mexico

201,190
136,003
166,877

United States

6,750,000
5,330,189
5,041,937

Total

7,298,820
5,734,797
5,266,582
South America and Caribbean

Argentina

129,800
100,000
62,907

Bolivia

2,790
1,658
1,858

Brazil

3,515
1,622
299

Chile

360
--
301

Colombia

30,900
21,167
81,430

Ecuador

5,700
4,340
7,170

Netherlands West Indies

657,000
696,405
--

Peru

34,900
33,660
40,521

Trinidad

99,000
80,310
56,485

Uruguay

25,000
13,973
--

Venezuela

287,950
145,389
1,321,414

Total

1,276,915
1,100,523
1,572,384
Western Europe

Belgium

16,500
7,263
--

Denmark

655
663
--

France

293,100
230,879
1,126

Western Germany

71,070
33,863
16,293

Italy and Trieste

128,280
60,729
195

Netherlands

53,500
53,425
11,819

Portugal

7,000
5,378
--

Sweden

24,800
8,918
--

United Kingdom

206,680
120,712
936

Total

801,585
521,800
30,359
Middle East

Bahrein Island

165,000
153,589
30,096

Egypt

47,000
42,600
43,458

Iran and Kuwait

572,100
487,118
807,238

Iraq

9,500
6,115
84,932

Israel

83,000
1,616
--

Lebanon

11,000
6,236
--

Qatar

--
--
2,055

Saudi Arabia

140,000
126,767
476,734

Turkey

1,400
142
260

Total

1,029,000
824,244
1,444,773
Other Asia      

China

19,000
4,364
2,060

India, Burma and Pakistan

12,800
7,658
8,274

Japan

51,127
3,510
3,707

Total

82,927
15,532
14,041
Other Africa

Canary Islands and Spain

23,600
11,482
--

French Morocco

800
290
373

South Africa

2,000
--
--

Total

26,400
11,772
373
Oceania

Australia

17,600
10,959
3

British Borneo

35,000
(175,800)
68,789

Indonesia

--
--
123,101 (3)

Netherlands East Indies

146,300
--
--

Total

198,900
186,819
191,893

Total above countries

10,714,547
8,395,548
8,520,674
USSR and Eastern Europe

USSR

675,000
640,000
658,000

Other Eastern Europe

209,235
131,096
130,068

Total

882,235
771,096
788,068
Switzerland, Norway, Korea
7,850
--
--

World total

11,606,632
9,166,614
9,308,742

(1) Source: World Petroleum Annual Refinery Review, 1950, vol. 21, no. 8.
(2) Source: Bureau of Mines, World Petroleum Statistics, 1949
(3) Includes production of New Guinea

As the table indicates, the three leading refining centers of the world are the United States, the Venezuela-Caribbean area, and the Middle East. In 1949, 58 percent of the world's refining capacity was in the United States, about 8 percent in Venezuela and the Netherlands West indies, and nine percent in the Middle East. Excluding U. S. S. R. and eastern Europe, more than 86 percent of the world's refining capacity was located in these three important refining areas. These areas are all important crude producing centers, with the exception of the Netherlands West Indies, which produces no oil but refines large quantities of crude imported from Venezuela and other South American producing countries.

Iii the Middle East, large refineries are located on the Persian Gulf at Abadan, Bahrein, and Ras Tanura. At the eastern end of the Mediterraanean are refineries at Haifa and Tripoli, which operate on crude from the Middle East fields. Since the Middle East is not a large consumer of oil, the products from these refineries must necessarily move to other parts of the world--principally Europe and the Far East.

Western Europe held in 1949 approximately 7.5 percent of the world's refining capacity. The total refining capacity of its 82 refineries was less than that of the three large refineries in the Netherlands West Indies. However, since World War II, there has been a tendency to increase the capacity of the European plants. Since western Europe is not an important producer of crude, practically all of its refineries operate on imported crude. Thus, while total refinery runs to stills in this area were about 522,000 barrels daily in 1949, production of crude in the area was only 30,000 barrels per day.

Exactly the opposite condition exists in South America and the Middle East. There, refinery runs in 1949 were less than daily crude production, indicating exportation of crude.

In 1949, the United States bad refinery runs of almost 300,000 barrels per day in excess of crude production. Barring any reduction in crude stocks, the excess of crude runs is an index of the volume of crude imports.

Only a small percentage of the world's refining capacity is located in the Far East. This part of the world is neither an important producing nor consuming area, and refining capacity is about equal to crude production.

WORLD PETROLEUM CONSUMPTION AND SUPPLY

Just as the geographic pattern of reserves differs from that of production, and the pattern of production differs from that of refining, so also does the pattern of consumption differ from the other variables. The geographic differences in "demand" and "supply," which are synonymous terms in the petroleum trade for consumption and production, are indicated in table 5 for the years 1947 and 1949. Thus the table reveals those areas of the world which consumed more oil than they produced, as well as those areas which produced in excess of domestic needs.

The only two areas of the world that produced more petroleum than they consumed in 1947 and 1949 were the Caribbean and the Middle East. All other areas were dependent upon the surplus-producing regions to make up the balance between their consumption and production. These deficit areas were Europe, Africa, the Far East and Oceania, and parts of North and South America.

One of the most striking developments revealed in table 2 is the rise of the Middle East as an important supplier of the world's petroleum needs. In 1947, the Middle East had an excess of supply over consumption of about 671,000 barrels daily; by 1949, this excess had nearly doubled, reaching 1,191,000 barrels daily, which was almost enough to surpass the Caribbean area as a surplus producer of petroleum.

In the United States in 1949 consumption exceeded domestic supply by about 322,000 barrels daily, while in 1947 consumption and supply were approximately equal.

Taking the major producing areas as a whole, in 1949 the United States, the Caribbean, and the Middle East supplied 85 percent of the world's oil but consumed only 64 percent. Thus a surplus of 21 percent, or about 2,120,000 barrels per day, was available for the deficit-producing countries.

Table 5--Petroleum demand and supply by areas, 1947 and 1949
[In thousands of barrels daily]

Country Domestic Demand (1) Domestic Supply (2) Excess of supply over demand Excess of demand over supply Percent of world supply of domestic demand Precent of world supply of domestic supply
1949            
United States
5,792.4
5,470.4
--
322.0
59.42
55.70
Other North America
478.2
232.2
--
246.0
4.91
2.36
Total, North America
6,270.6
5,702.6
--
568.0
64.63
58.06
Caribbean Area
212.9
1,464.1
1,251.2
--
2.18
14.91
Other South America
397.5
117.8
--
279.7
4.08
1.20
Total South America
610.4
1,581.9
971.5
--
6.26
16.11
Europe (excluding USSR)
1,226.7
176.2
--
1,050.5
12.59
1.79
Africa
236.8
44.5
--
192.3
2.43
0.45
Middle East
211.8
1,402.9
1,191.1
--
2.17
14.29
Far East and Oceania
484.0
205.7
--
278.3
4.97
2.10
Total world (excluding USSR)
9,040.3
9,113.8
73.5
--
92.75
92.80
1947
United States
5,449.2
5,449.2
--
--
62.36
62.02
Other North America
487.3
176.8
--
310.5
5.58
2.03
Total North America
5,936.5
5,626.0
--
310.5
67.94
64.65
Caribbean area
181.6
1,318.4
1,136.8
--
2.08
15.15
Other South America
262.3
106.0
--
156.3
3.00
1.22
Total South America
443.9
1,424.4
980.5
--
5.08
16.37
Europe (excluding USSR)
1,010.6
161.9
--
848.7
11.57
1.86
Africa
180.3
26.5
--
153.8
2.06
0.30
Middle East
168.8
840.3
671.5
--
1.93
9.66
Far East and Oceania
419.5
70.5
--
349.0
4.80
0.81
Total world (excluding USSR)
8,159.6
8,149.6
--
10,0
93.38
93.65

(1) "Demand" as used by the industry trade press, equals consumption plus or minus additions to or subtractions from stocks.
(2) Included production of crude oil, nautral gasoline, and synthetic products.
Source: C.J. Bauer, petroleum economist, Standard Oil Co. (New Jersey), published in World Oil, July 15, 1950, p. 40.

Excluding the U. S. S. R., the United States is the only important industrialized country which is able to supply its own petrIsulfl needs. Many of the major crude-oil-producing countries are not highly industrialized and, therefore, have a limited demand for petroleum. Typical of such countries are the nations of the Middle East and South America. The converse is true of most of the countries of Western Europe and Canada (the latter prior to recent discoveries), which are highly industrialized but produce little petroleum.

THE PATTERN OF INTERNATIONAL TRADE IN PETROLEUM

In the preceding sections it has been shown that the geographic distribution of the world's petroleum production differs widely from the geographic distribution of consumption. This wide disparity has given rise to a rather well defined pattern of international trade in the industry.

The principal movements of crude petroleum in international trade are shown for 1948 in table 6.

It will be seen that in 1948 there were three dominant movements of crude--all, of course, from surplus areas. From the United States, the principal crude movements were to Canada, Cuba, Argentina, France, and the United Kingdom. From Venezuela and Colombia, large quantities of crude moved to the Netherlands West Indies, United States, and Europe, with small amounts going to Africa, Argentina, and Uruguay. The third major international movement of crude was from Iran and the Persian Gulf 11 to North and South America, Europe, Africa, and Asia.

The movement of crude from the Persian Gulf to North America (United States and Canada) is a relatively new development in the general pattern of international trade in crude. In 1048, about 23 million barrels of crude moved from the Middle East to the United States and Canada, representing approximately 12 percent of all crude exported from the Middle East.

As would be expected, the international movements of crude are from the producing areas to countries which have the refining capacity to convert crude to products, rather than to the. important consuming countries. Thus a considerable proportion of the international trade in petroleum moves indirectly to the consuming countries by way of those areas which possess refining facilities. Refining facilities are frequenty located where neither production nor consumption of petroleum is important. For example, in 1948, large quantities of crude produced in Venezuela were exported to the Netherlands West Indies for refining, with the products then exported to the consuming countries. In 1948, Venezuela exported 437,700,000 barrels of crude petroleum. Of this total, 270,992,000 barrels, or approximately 62 percent, went to the Netherlands West Indies, which is neither an important producing nor consuming area. Since most of the refined products derived from this crude must be moved to consuming areas, the result is a corresponding increase in the volume of international trade.

Similarly, the movements of crude from the Persian Gulf to Bahrein Island and Palestine (as shown in table 6) are movements to refining centers, rather than to consuming areas. From these refineries, finished petroleum products are shipped to Europe and Asia.

Another type of movement is the shipment of crude to countries which are important consumers of petroleum products, have considerable refining capacity, but are deficient in crude production. In 1948, France had about 50 percent of the refining capacity of Western Europe, but its crude production accounted for only about six-tenths of 1 percent of refinery runs. About 72 percent, or roughly 40 million barrels, of the imports on which France depended came from the Middle East; while 28 percent, or approximately 14.5 million barrels, came from the United States and Venezuela--primarily from the latter. 12

Since France's refinery output could not satisfy her requirements, these imports of crude were inadequate. As a result, France unported approximately 7 million barrels of refined petroleum products (motor gasoline and distillate fuel oil)--principally from the United States and the Persian Gulf. 13

The flow of refined products is shown in table 7, which reveals three principal exporters of refined products: the United States, Netherlands West Indies and Venezuela, and the Persian Gulf. As importers, the major geographical areas stood, in order of importance, as follows: Europe, Asia, North America, Africa, Oceania, and South America. The principal movements of refined products were: (a) from the United States to other North American countries, to South America and Europe, with small quantities to Oceania, Asia, and Africa; (b) from the Netherlands West Indies and Venezuela to North and South America, Europe, and Africa; (c) from the Persian Gulf to Europe, Asia, Africa, and Oceania.

In summary, there are four principal movements of petroleum and its products: (1) Crude from producing areas to consuming areas; (2) crude from producing areas to refining centers which are not consuming areas; (3) refined products from such refinery centers to consuming areas; and (4) refined products from producing areas with refinery facilities to consuming areas.



Go to Chapter 2 of The International Petroleum Cartel, "Concentration of Control in the World Petroleum Industry," pp. 21-36.


Footnotes

1. The estimates on which table 1 is based vary in accuracy depending on the data available in each country, the expertness of those making the estimates, the assumptions underlying the data and so on. Estimates for well-developed fieldss are more dependable than those for newly opened fields, such as those in the Middle East.

2. World Oil, July 15, 1950, p. 65

3. World Oil, July 15, 1950, p. 54,

4. Ibid., p. 44.

5. Ibid., p. 54.

6. Ibid., p. 54.

7. Estimates of production do not always agree. World Oil, July 15, 1950, gives the average daily production of the Middle Fast (including Iran, Iraq, Saudi Arabia, Kuwait and Bahrein) as1,473,7l8 barrels, while the Oil and Gas Journal, January 26, 1961). gives production for the same countrirs as 1,386,000 barrels daily.

8. World Oil, July 15, 1950, p. 54.

9. Ibid., p. 42.

10. Ibid ., pp. 42-43.

11. In preceding sections Iran and the Persian Gulf are included under the more general term "Middle East."

12. Bureau of Mines, International Petroleum Trade, May 31, 1949, pp. 127-128.

13. Ibid., p. 119


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