Jim_Krane]_Energy_Kingdoms__Oil_and_Political_Sur

26BEFORE OIL Rents in the modern Gulf take the form of excess profit that goes beyond a reasonable rate of return. In the case ...

BEFORE OIL27 to capture and distribute rents is one part of the story. Credit for other stabilizing factors goes to the imperia ...

2. The Oil Age Arrives F rom the nostalgic perspective of the khaleeji— the Gulf Arab citizen— the pre- oil days were a kind of ...

THE OIL AGE ARRIVES29 Thesiger’s idealized depiction notwithstanding, it is difficult to imag- ine the frightening crush of cha ...

30THE OIL AGE ARRIVES Americans erect fences and bulldoze the landscape, working shirtless in the blazing heat: Within days eve ...

THE OIL AGE ARRIVES31 a whooshing sound and soon got the first whiff of the oil that would transform Bahrain and the other deso ...

32THE OIL AGE ARRIVES crude oil from a drilled well anywhere in the kingdom. Well No. 1 began coughing out crude oil, but at th ...

THE OIL AGE ARRIVES33 Socal’s concession would turn out to be worth upward of $1 trillion. It was becoming clear that Saudi Ara ...

34THE OIL AGE ARRIVES So when on October 16, 1938, Caltex brought news of the Dammam find to Ibn Saud, the Saudi king knew that ...

THE OIL AGE ARRIVES35 The oil produced from the Dammam Dome, at Jebel Dukhan in Bahrain, at Burgan in Kuwait, and at the offsho ...

36THE OIL AGE ARRIVES THE AGE OF THE SEVEN SISTERS Oil production in the Gulf and in much of the world was managed by a group o ...

THE OIL AGE ARRIVES37 developing Saudi Arabia. The administration, research, and engineer- ing roles that Aramco pursued on beh ...

38THE OIL AGE ARRIVES proven reserves accounted for more than a quarter of the global total.^22 Washington wanted to ensure Sau ...

THE OIL AGE ARRIVES39 THE OBSOLESCING BARGAIN In the long run, the Arabian oil concessions were too generous to sur- vive. The ...

40THE OIL AGE ARRIVES rents to the state. The IOCs typically demurred. The Seven Sisters remained beholden to the terms of the ...

THE OIL AGE ARRIVES41 Mexico ejected the foreigners and handed their businesses to a newly created government- owned firm, Peme ...

42THE OIL AGE ARRIVES dependent by the 1960s on barrels from the Middle East. Oil had become too vital to be cheap. By the earl ...

3. The Big Payback B y the 1970s, oil- producing countries had grown tired of being yoked to industrial powers in lopsided trade ...

44THE BIG PAYBACK Western oil companies had proven adept at dealing one on one with troublesome regimes. For producers, the key ...

THE BIG PAYBACK45 that Saudi greenhouse- gas emissions were actually higher in the 1970s than they were as recently as 2010.^3 ...