ARAMCO & The House Of Saud

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The only thing that was more striking than America’s cynicism- from paranoid right and jaded left alike – toward’s the Arab Spring was this nation’s collective journalistic ignorance about the Middle East region.

Pundits compare revolutionary Iran, where a still-nationalized oil sector has Big Oil licking it’s profit-inflated lips, to Algeria and Yemen, where CIA intrigues installed reactionary governments to replace progressive one’s which opposed the Gulf War in 1991. They compare socialist Syria with US puppet monarchies in Bahrain and Jordan.

There are generally two types of Arab governments in the Middle East. The democratic one’s have been our enemies. The monarchs and dictators have been our friends. And the game has been all about oil.

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(What follows is excerpted from Chapter 3: JP Morgan & the House of Saud: Big Oil & Their Bankers…)

By Dean HENDERSON, LEFT HOOK

With 261 billion barrels of crude oil lying beneath its soil, Saudi Arabia remains the lynchpin in the international oil grab presided over by the Rothschild/Rockefeller-controlled Four Horsemen. If revolution in the Middle East really hits its stride, then it must pay a visit upon the most crooked monarchy of all- the House of Saud.

As Joseph Story, Middle East analyst and former ARAMCO executive once said, “Only one factor is involved in where the price of oil is going to go, and that is Saudi Arabia”.

In 1933 Standard Oil Company of California (Socal) negotiated the first oil concession in Saudi Arabia with Saudi Finance Minister Abdullah Sulaiman. The Saudis were to get a 30,000 British pound loan and 5,000 pounds for the first year’s rent, all payable in gold. But US President Franklin Delano Roosevelt (FDR) had just embargoed gold exports in response to the Great Depression and Socal’s request for an exemption was turned down by FDR’s Secretary of State Dean Acheson.

Socal circumvented the embargo by procuring the gold from the London branch of Morgan Guaranty Trust. When the Saudis asked Socal officials what they should do with their newfound wealth, Socal recommended depositing it at Morgan Guaranty Trust. The Saudis complied.

In 1938 Socal, which later changed its name to Chevron, struck oil in both Saudi Arabia and Qatar and founded the Arabian American Oil Company (ARAMCO). Chevron quickly brought in Standard Oil of New Jersey (later Exxon), Standard Oil of New York (later Mobil) and Texaco as partners. This American half of the Four Horsemen would grow ARAMCO into the largest oil company in the world, nearly three times the size of Royal Dutch/Shell.

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