The World-Struggle for OilL'Espagnol de la Tramerye, Pierre Paul Ernest
History
The World-Struggle for Oil
L'Espagnol de la Tramerye, Pierre Paul Ernest
Petroleum; Petroleum industry and trade; War -- Economic aspects
One day, to the great astonishment of everybody interested in the
American oil industry, Mr. Deterding brought a cargo of oil to the
United States and sold it under the very nose of the directors of the
_Standard Oil_. Emboldened by this first success, he tried to establish
himself in the United States, and with this aim in view bought
oil-bearing properties in Oklahoma. The _Royal Dutch_ rapidly increased
its territory.
By a bold policy and without recourse to the sharp practices of the
directors of the _Standard Oil_, Deterding revenged himself for
the attack upon him in the Far East. The _Royal Dutch_ sent large
quantities of petrol to America and sold them at rates as high as those
of the _Standard_. This enabled it to make good its losses in the Old
World and to emerge victorious from the struggle.
During his Chinese campaign Deterding had been handicapped by the
inferiority of the oil from Borneo. To remedy this he proposed to
obtain possession of various Californian wells.
Of all the wars that Deterding has waged, that of California is
the most interesting and perhaps the most strenuous. It required a
remarkable audacity for the _Royal Dutch_ to establish itself on the
very territory of the _Standard_ in America. Would it not meet there
the coalition of this great firm and the independent oil companies?
And yet Deterding triumphed. He created the _Roxana Petroleum Company_
in Oklahoma, the _Shell Company of California_ on the shores of
the Pacific, and then extended his conquests to Texas, New Mexico,
Colorado, Utah, Arizona, Montana, Dakota and Nevada. Everywhere the
_Royal Dutch_ brings with it its curious methods. It begins by taking
an option for six months on an oil bearing property, giving it the
right to examine the books of the company and to make an inquiry. At
the end of six months it takes an option on another property, and
continues in this way throughout the region. After leaving nearly all
the options without sequel, the _Royal Dutch_ is ready to begin boring
operations on its own account in selected places.
This method, adopted for the first time in California, is to-day the
_habitual method_ of the _Royal Dutch-Shell_. Thus this company rarely
makes miscalculations in the oil-fields it exploits. Its agents have
orders to report the minutest details to head-quarters.
In order to interest the American public in the success of his
enterprise, Deterding was clever enough to place upon the New York
market, in 1916, 220,000 so-called American shares. This issue was a
great success, and it has thus become against the interest of many
Yankees for the United States Government to start reprisals against the
_Royal Dutch_, of which the late President Harding has often spoken.
Public-domain text, read in full here on John Shaqi.
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