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acting as agents of a foreign government against the United States, the cry went out that the oil
industry was putting “profits before patriotism.” Before the embargo, America was importing 1.2
million barrels oil a day; and by February, only 18,000 barrels, which was a drop of 98%. The
rush was on to reallocate other sources of oil (Venezuela and Iran had not joined the boycott),
and to distribute it throughout the world. The global emphasis of the American oil companies
were revealed, when they refused to favor the U.S. at the expense of the other countries, causing
us to lose a higher percentage of the available oil supply.
In Egypt, Sadat’s terms for a ceasefire, was that Israel had to withdraw from all territories
that it had won during the 1967 war; thus pressure from the United States and the Soviets, forced
Israel to turn their victory into a negotiated compromise.
To add insult to injury, when the winter was at its worst during the shortage, the
announcement that oil companies were experiencing record profits, left a very sour taste in the
mouths of Americans. Exxon announced that their third quarter profits were up 80% over the
previous year, while Gulf was up 91%. Exxon ended up the year with a profit that was an alltime
record for any company, in any industry.
By March, 1974, the embargo was lifted from the U.S., and the oil companies scrambled to
salvage their shattered reputations. However, the incident would never be forgotten, because it
shocked the American people back to the reality of just how much control a foreign government,
and multinational corporations could exert over our nation. The price of oil never went down to
their pre-embargo levels, and the threat of another shortage would always remain as the Arabs
realized that they could achieve political leverage by using oil to blackmail the world.
There have been many changes in the oil industry since the inception of the Seven Sisters. In
1984, Chevron (Standard Oil of California) bought, and merged with Gulf Oil; and then in 2001,
merged with Texaco (who in 1984 had bought Getty Oil), to become ChevronTexaco, the 2nd
largest oil company in the country, and 5th largest in the world. In 2002, Shell Oil acquired a
couple of Texaco’s interests. In 1998, Exxon (Esso, Standard Oil of New Jersey) merged with
Mobil (Socony, Standard Oil of New York) to become ExxonMobil, the biggest oil company in
the country, and third largest company in the U.S. In 1987 British Petroleum purchased the
remaining 45% of Sohio (Standard Oil of Ohio) that they didn’t already own, then in 1998,
merged with Amoco (Standard Oil of Indiana), and in 2000 merged with Arco (Atlantic
Richfield).
The Seven Sisters are now the Four Sisters, so what you have now is an expanded amount of
power and influence that is concentrated in less hands, as oil companies have sought to
consolidate their interests because of economic concerns. It’s uncanny in that it has happened in
less than 20 years. It’s almost as if the old Standard Oil Company was coming back together. In
2001, Conoco (Continental Oil) and Phillips Petroleum (Phillips 66) merged, to make
ConocoPhillips, the 3rd largest oil company, the 12th largest company, and the 6th largest oil
company in the world. If this trend continues, it will make it all the more easier for oil companies
to manipulate and control a crucial commodity like gasoline and oil.
CLUB OF ROME
This think-tank of Anglo-American financiers, scientists, economists, politicians, heads of
state, and industrialists from ten different countries, met in April, 1968 at Rockefeller’s private
estate in Bellagio, Italy, at the request of Aurelio Peccei, the Italian industrialist who had close