CHAPTER XXII

CONCLUSION

The World in 1923

The political independence of a people may sometimes be nothing but a sham. France, having neglected to obtain her share in the division of the world's oil, is to-day in a position of dependence upon Britain and America. If, to-morrow, she had to defend herself against a fresh attack, her tanks, her aeroplanes, her submarines, and the whole of her supply services could only function by consent of her Allies. Even with the first army in the world, France could be victorious only if Britain and the United States permitted.[58]

Already in time of peace, nations without oil were in a position of considerable inferiority, in view of the hundreds of uses to which oil is put in industry, and especially in the important sphere of the transport and distribution of commodities. There is no true independence for a people but that which is assured economically and financially. Military supremacy is only the happy result of proper efforts undertaken to attain it. During the War, such independence was to be desired for France even more than during peace: it would have avoided the heavy debts which she incurred to her Allies, and it would have enabled her to exploit herself the resources at home and in the colonies which she has been compelled to hand over to foreigners.

Before the War, France consumed more than 400,000 tons of oil a year. To-day, she requires 1,500,000, and the oil wells of Alsace, which the Treaty of Versailles has restored to her, produce only 60,000 tons, and Algeria 3,000-4,000 tons.[59] Thus, she is obliged to pay the foreigner nearly 2,000 million francs a year in order to obtain the oil which she lacks.

Nevertheless, there is almost certainly oil in France, in the Ain valley, the Jura Mountains, Auvergne, and the Landes; there is oil in the French possessions in Northern Africa and in Madagascar; there must be some in the Cameroons, in Indo-China, and in New Caledonia. Is it not abnormal that the West Indies and Guiana, when in British or American hands, produce oil, but when in French hands never yield anything? The same applies to Oceania. But there is no reason to be astonished at this; for, under the legislation which was in force since 1810, no Frenchman had any inducement to search for oil. This explains the epigram of one of the most important members of the French cartel, when he declared that "the greatest misfortune that could happen to an oil magnate in France would be to discover a spring of oil." Happily, on March 22, 1922, the Chamber altered this state of affairs by granting, as was suggested in the first edition of this book, the guarantees which are indispensable to prospectors. Till that year, the exploitation of deposits which a prospector had discovered might be conceded to any foreign company which came on the scene at the right moment to reap the fruits of his labours. Repayment of money laid out was highly problematical, for the local authorities used to grant this only to those responsible for the final investigations leading directly to the discovery of oil. Now, hunting for a "wild cat"--the American term for a boring--is a very risky operation, which entails considerable expenditure. In a protest submitted to the Ministry of Public Works by five Algerian colonists, who had carried out explorations and borings upon land for which a concession was now asked by a company of foreign origin, the colonists stated by affidavit that they had spent 870,000 francs upon 14 borings and 85 wells, of which seven alone were actually producing a few tons of petroleum. Even so, the proportion of seven successful wells out of 85 is rather high. O'Donnell, the president of the American Petroleum Institute, estimates that, out of every hundred borings made, 98 are unprofitable. But for fifty years the 2 per cent. which succeeded sufficed for the consumption of the world.

The policy of France in the Near East since the War has been simply one long suicide. Little by little, French diplomacy has abandoned everything that was promised by the agreements of London. While the San Remo Agreement marked the complete downfall of France in Asia, it considerably strengthened the position of Britain: not only does it recognize all rights acquired by Great Britain, including those which, as in Mesopotamia, rested upon a highly insecure foundation, but it gives British capitalists an important opening in French colonies which are still almost untouched, whereas the corresponding advantages which it confers upon France in some (not all) British colonies apply to territories where the most desirable fields are already being exploited.

France is paying for her past inertia.

If the Allies have to thank the two great trusts for enabling them to get their supplies of oil during the War, the latter in return have notably increased their power. The defeat of the Central Empires has brought about the ruin of their rival, the _Europeanische Petroleum Union_, and the destruction of the network of interests which Germany had succeeded in spreading over Galicia, Rumania, Russia, and Turkey.

The ambition of the _Royal Dutch_ since it linked its fortunes with those of the British Empire knows no bounds. Its latest success at Djambi has now spurred it to ask the Netherlands Government for a monopoly of exploitation in all the Sunda Islands. It has almost reached the point of eliminating its American rival completely from the Far East.

The _Standard_ retaliates, and sends prospectors wherever they are admitted--to Abyssinia (January 1921), Peru, Colombia, the Philippines, Bolivia. It has gained a footing in the Azores, and in July 1922 was trying in Ecuador to acquire control of the _Lobitos_ from the _Anglo-Ecuadorian_. It is actively cultivating the Government of Czecho-Slovakia for the grant of exclusive rights of exploitation, and it has obtained from the Italian Government a concession for the oil deposits of San Saba, near Trieste. But the Chinese Government has refused the permanent agreement which it proposed.

Walter Teagle wishes the _Standard_, like the _Royal Dutch-Shell_, to become a producer of oil and not to content itself with the mere control of refining and distribution. But the time is long past when Rockefeller controlled 95 per cent. of the sales of oil in the United States. Although the _Standard's_ capital has risen to $1,310,000,000 and the number of its subsidiaries to 62 it now refines only 49 per cent. of American oil. In the United States there are forty-four independent companies, representing a capital of two thousand million dollars, which carry on, not only the extraction, but also the transport, refining, and sale of oil. Still more serious, the Anglo-Dutch trust has succeeded in establishing itself on the territory of the Union itself; at a recent congress of the American Petroleum Institute, Walter Teagle showed that the _Royal Dutch-Shell_ drew 43 per cent. of its total production from the United States. Be that as it may, the _Standard_, in America, is always regarded as the great national champion, upon which falls the task of fighting the _Royal Dutch_ and the British Empire, which have laid plans for depriving the United States of their supremacy in oil. _Who attacks the_ Standard _attacks the Washington Government directly_. And in Europe it still occupies a strong position through its various subsidiary companies. _The struggle for oil is no longer a rivalry between great trusts; it is a struggle between nations._

FOOTNOTES:

[Footnote 58: Herein lies the explanation of the undecided policy of France since the signature of the Treaty of Versailles.]

[Footnote 59: But she also possesses at Les Telets, near Autun, bituminous shale which, in 1917, produced 103,400 tons, yielding 75 litres of oil per cubic metre.]

BIBLIOGRAPHY

FRANCE

_Agence Économique et Financière_ (1920-21).

_Annales Franco-Helléniques_ (1920).

Bérenger, Henry, _Le Pétrole et la France_ (1920). _La Politique du Pétrole_ (1920).

_Brésil_ (1920, "Le Pétrole en Amérique latine").

_Capital_ (1914).

_Courrier des Pétroles._

Delaisi, Francis, _Oil: Its Influence on Politics_ (1920: English translation, 1922).

_Économiste Européen_ (1906-21).

_Épargne_ (1919).

_Europe Nouvelle_ (1921).

Financial Bulletins of the _Société Générale_.

_France Économique et Financière._

_Illustration Économique et Financière._

_Information_ (1906-21).

Le Page, _L'Impérialisme du Pétrole_ (1921).

_Messager de Paris_ (1919-20).

_Moniteur Économique et Financier._

_Mouvement Financier_ (1909).

_Nouvelles Économiques et Financières._

Parliamentary publications: Reports presented for the Customs Commission by the Duc de la Trémoïlle (March 1919), and Senator Jean Morel (June 1919).

Report presented for the Finance Commission by M. Charles Leboucq (June 1920). #/

Documents submitted to the Sub-Committee on Oil of the Chamber of Deputies (1920).

_Producteur_ (1921).

_Revue des Deux Mondes_ (1st April, 1920, Contre-Amiral Degouy, "Le Pétrole et la Marine").

_Revue Financière_ (1911-21).

_Revue Politique et Parlementaire_ (August 1920).

_Revue Universelle_ (October-December 1920).

_Vie Financière_ (1914-21).

_Vie Économique et Financière_ (1912).

GERMANY

Ludendorff, _My Memoirs_.

Potonie, _Entstehung der Steinkohle, des Petroleum, u.s.w._ (Berlin, 1910).

_Vossische Zeitung_ (1913, "The Troubles in Mexico").

BELGIUM

_Revue Belgo-Roumaine_ (1920, "Le Pétrole en Roumaine").

_Revue Économique Internationale_ (1921).

GREAT BRITAIN

_Daily Graphic_ (1913, "The Troubles in Mexico").

_Daily Mail_ (1920).

_Engineering and Mining Journal._

_Financial News_ (1912-21).

_Financial Times_ (1921).

_Financier._

Lord Fisher's Letters to the _Times_ (September 1919).

_Manchester Guardian_ (1921).

_Petroleum Review_ (1910-21).

_Petroleum Times_ (1920).

UNITED STATES

Barnes, _The Romance of Persian Oil_. _The Standard Oil Companies_ (1920).

_Brooklyn Eagle_ (1920-21).

_Nation_ (1921).

_Petroleum Magazine_ (1921).

_Public Ledger_ (Philadelphia).

Reports of the State Department for Foreign Affairs.

Hepburn Committee.

Inter-State Commerce Commission.

Director of the Bureau of Mines to the Secretary of State for the Interior.

Statistics of the Geological Survey.

Smithsonian Institute.

Independent Oil Producers' Agency.

American Chamber of Commerce in Paris.

_National Bank of Commerce_ of New York.

_Washington Post_ (1919-20).

_World's Work_ (1920).

MEXICO

_Boletin del Petroleo_ (1920-21).

Statistics of the Technical Commission on Petroleum of the Ministry of Commerce, Industry and Labour.

INDEX

Abyssinia, 248

Africa, 42, 245

Aktien Gesellschaft für Petroleum Industrie, 73, 74

Alaska, 40

Algeria, 234

Alleghanies, 28

Alpine Railways, 35

America, 66, 78, 239, 240 _et passim_

American Navy, 19, 40

American Petroleum, 51

Anglo-American Oil Co., 51

Anglo-Egyptian Oil-fields, 74

Anglo-Persian Oil Co., 87, 93, 151 _et passim_

Anglo-Saxon Petroleum, 62, 74

Anglo-Swedish Oil Co., 73, 74

Antipodes, 72

Apsheron, 26

Aquila Franco-Romana, 98

Argentine, 140, 143, 163

Arizona, 69

Asia, 72

Asia Minor, 225

Asiatic Petroleum Co., 74

Associated Oil, 80

Astra Romana, 75, 98

Australia, 42, 140

Austria, 35

Automobilism, 34

Aviation, 34

Azores, 72, 248

Bagdad, 26

Baku, 24, 29, 73

Banks Interested in Oil, 97, 98, 241, 242

Batavia, 85

Batavian Oil Company, 62, 74

Bibliography, 251

Bituminous Shale, 40

Black Sea, 72

Black Sea Co., 98

Bolivia, 248

Borneo, 61, 68, 75

Brazil, 144

British Controlled Oil-fields, 11, 143, 166

British Crown Colonies, 232

British Government, 89, 98, 133, 147, 152, 153, 157, 168

British Imperial Oil Co., 75

British Oil Policy, 158, 162, 182, 184, 215

British Pearson Syndicate, 80

British Petroleum Co., 75

British Tanker Co., 75

Burlington Investment Co., 76, 90, 130

Burmah Oil Co., 98, 131, 132

California, 68, 152

Californian Oil-fields, 76

Cape Verde Islands, 72

Carib Syndicate, 129

Caribbean Petroleum, 75

Carpathians, 98

Cartel of Ten, 52, 201, 208, 212

Caspian Sea, 72

Caucasus, 22, 45, 78, 97

Central Refining Co. of Pittsburg, 49

Ceram Oil Syndicate, 75

Ceram Petroleum, 75

China, 26, 65, 68, 92, 248

Coal, 12, 16, 17

Colby Note, 168

Colombia, 129, 152, 248

Colon Development Co., 90, 129

Colorado, 40, 69

Commercial and Industrial Companies of Caspian and Black Seas, 75

Companies Controlled by Royal Dutch, 73

Companies forming Standard Oil Trust, 49

Concordia Co., 229

Control of the Seas, 11, 18, 178

Costa Rica, 129, 144

Curaçao, 71

Curaçao Petroleum, 76

Czecho-Slovakia, 248

Dakota, 69

Danske Petroleum Altieselskabet, 51

Danube Navigation Co., 99

D'Arcy Exploration, 137

Deutsche Amerikanische Petroleum Gesellschaft, 51

Deutsche Bergin A.G., 73, 74

Deutsche Erdol Aktien Gesellschaft, 98

Deutsche Petroleum Verkaufs Gesellschaft, 98

Diesel Engine, 14, 34

Dissolution of Standard Oil, 54

Distribution of Oil in Europe, 41

Distribution of Oil in New World, 40

Doheny Interests, 45, 80

Dordesche Petroleum Company, 75

Dordesche Petroleum Industrie, 75

Dutch Indies, 13, 77

Eagle Oil Transport, 76

East Indies, 152

Ecuador, 144

Egypt, 42, 152

Empire Refining Company, 49

Erdol Industrie Anlagen Gesellschaft, 103

Erdol und Kohle Veränderung Aktien Gesellschaft, 73, 74

Europeanische Petroleum Union, 79

Exhaustion of Oil-fields, 176

Far East, 65, 66, 80

Financial Groups, 78

Galicia, 51, 78

Galician Companies, 99

General Asphalt Company, 71, 76

General Leasing Act, 180, 181

Genoa Conference, 185

German Battleships, 19

German Submarines, 15

Grosny Sundja Oil-fields, 75

Hague Conference, 93

Home Light Oil Company, 75

Hungarian National Petroleum Co., 139

Hungary, 137

Imperial Oil Co., 184

Increase in Consumption of Oil, 33, 34

India, 90, 152

Inter-Allied Petroleum Conference, 107, 153

Internal Combustion Engine, 14, 15

International Oil Company, 51

Italian Company for the Import of Oil, 75

Java, 63, 80

Jugo-Slav Petroleum, 77

Jugo-Slavia, 73

Keystone Refining Company, 49

Konzern Group, 99

Kotoku Oil-fields Syndicate, 76

La Corona, 76

Latakia Oil, 224

Lianosoff, 72, 76

Limanowa, 98

Lobitos, 248

Louisiana, 70, 152

Mantasheff, 72, 75, 197

Market-price of Oil, 36

Mazut, 14, 16, 37, 112

Mazut Company, 75

Mesopotamia, 158, 168, 230

Mexican Eagle, 22, 71, 76, 121, 151

Mexico, 29, 30, 32, 70, 81, 113, 114, 115, 125, 143

Mineral Rights, 162

Moebi Hid, 75

Monopoly in Oil, 98, etc.

Monroe Doctrine, 129

Montana, 69

Moreni, Region of, 30

Mormons, 141

Mosul, 10, 26, 223, 224

Motor-traction, 38

National Transit Company, 49

Nederlandsche Indische Tanks Troomboat, 75

Nevada, 69

New Mexico, 69

New Russian Standard Company, 72

New Shibaïeff Petroleum Corporation, 75, 88

New Zealand, 42, 141

Nobel Properties, 73, etc.

Norsk Encelska Mineralojeanie Colaget, 75

North Caucasian, 75

Oceania, 42

Oil as Fuel, 13, 17, 19

Oil Borings, 21, etc.

Oil Lamp, Invention of, 28

Oil Policy, 9

Oil Springs, 21, etc.

Oil Union of Oklahoma, 80

Oklahoma, 80, 152, etc.

Orleans Refining Company, 76

Ownership of Land and Minerals, 116, 129

Ozark Pipe-Line Corporation, 77

Palestine, 161, 179

Panama Canal, 70, 71, 130, 144

Panama Canal Storage Co., 76

Panuco, 70

Persia, 133, 152

Peru, 156, 248

Philippines, 248

Photogen, 77

Poland, 45

Polk Report, 163

Producers' Associated Oil Company, 50

Protective Tariff, 89, etc.

Railways, 35

Royal Dutch, 45, 68, 77

Royal Dutch-Shell, 42, 59, 63, 73, 81, 84, 130, 147, 151

Roxana Petroleum Company, 69, 76

Roxana Petroleum Corporation, 77

Roxana Petroleum Maatschappij, 76

Rumania, 30, 45, 78, 102, 152, 229, etc.

Russia, 29, 30, 152, 186, 230 Revolution of 1905, 30 Bolshevik Revolution, 13

Russia, Soviets, 73, 157 Agreement between Shell and Soviets, 191

Russian Standard, 75

Salt Water in Oil Wells, 20, 122

San Remo Agreement, 10, 165, 169, 228, 239

Sandstone, 23

Shell Co. of California, 76

Shell Group, 167

Shell Marketing Co., 75

Shell Transport & Trading Co., 35, 61, 74

Sherman Anti-Trust Law, 56

Simplex Refining Co., 76

Sinclair Oil Co., 45

Societa Italo-Americana per Petrollo, 51

Société Bnito, 75

Société Générale des Huiles de Pétrole, 137

Société Maritime des Pétroles, 73, 77, 218

Société Navale de l'Ouest, 137, 219

Société pour l'Exploitation des Pétroles, 74, 218

Société pour le Vente du Pétrole, 51

Spain, 74

Standard Franco-Américaine, 241

Standard Oil Co., 9, 11, 42, 45, 57, 65, 77, 86, 92, 130, 174, 215, 221, 239 _et passim_

Standard Oil Trust, 48

Steaua Romana, 99, 140

Submarines, 15, 104, 154

Suez Canal, 72

Sumatra, 63

Sumatra Palembang, 75

Sunda Islands, 59, 248

Swenska Petroleum Altiebolage, 51

Tampico, 70

Tampico-Tanuco Petroleum, 76

Tank Steamers, 155, 209

Tei-Koku (Japanese), 140

Telegram from Clemenceau to Wilson, 104

Texas, 69

Tierra del Fuego, 40

Treaty of Brest Litovsk, 103

Treaty of Bukarest, 103

Trinidad, 144, 152

Trusts, 79

Tsatouroff, 72, 76

Turkey, 45

Turkish Petroleum, 76, 98, 99, 140, 223, etc.

Union Oil of Delaware, 77

United British Oil-fields of Trinidad, 76

United British Refineries, 76

United States, 9, 18, 29, 30, 32, 34, 38, 45 _et passim_

United States Pipe-Line Co., 50

Ural Caspian Co., 75

Utah, 40, 69

Vacuum Oil, 51

Vega Co., 229

Venezuela, 70, 71, 90, 144, 152

Venezuelan Concessions Co., 76

Vereinigte Benzinwerke, 75

Virginia, 70

Volley Pipe-Line Co., 76

Wages of Coolies, 13

War of 1914-1918, 12, 33, 101, 159, 210, etc.

Washington Conference, 184, 185, etc.

World-consumption of Oil, 39, etc.

World-production of Coal, 36, etc.

World-production of Oil, 32, etc.

W.V. Oil Co., 76