History of the Anglo-Iranian Oil Company
The Anglo-Iranian Oil Company (AIOC), known today as BP (British Petroleum), played a pivotal role in the development of the…
The Anglo-Iranian Oil Company (AIOC), known today as BP (British Petroleum), played a pivotal role in the development of the global oil industry and in shaping 20th-century geopolitics, particularly in the Middle East. Its history is marked by innovation, vast profits, and significant controversies, particularly in Iran, where it was a focal point of nationalist struggles and Cold War tensions.
Founding and Early Years
Origins:
The AIOC was founded in 1908 as the Anglo-Persian Oil Company (APOC) after the discovery of a major oil field in Masjed Soleyman, in southwestern Persia (modern-day Iran).
The discovery was made by a British company led by William Knox D’Arcy, who had secured a concession from the Persian government in 1901 to explore for oil.
British Involvement:
The British government became a major stakeholder in APOC in 1914, purchasing a controlling interest to secure oil supplies for the Royal Navy.
This move tied APOC closely to British national interests and foreign policy.
Operations in Persia:
APOC built extensive infrastructure, including refineries (notably at Abadan, the world’s largest refinery at the time) and pipelines, to extract and export oil.
Despite the immense wealth generated, the Iranian government and local population saw little benefit, as most of the profits flowed to the company and its British stakeholders.
Rebranding as AIOC
Name Change:
In 1935, APOC was renamed the Anglo-Iranian Oil Company (AIOC) to reflect Persia’s official adoption of the name “Iran.”
Unequal Arrangements:
Under the terms of the original 1901 concession, Iran received only a fraction of the profits from oil extraction. Calls for renegotiation intensified as the country’s leaders and people grew frustrated with the arrangement.
The AIOC’s refusal to significantly alter the terms of the concession became a major source of resentment.
Nationalization Crisis and Mossadegh (1951–1953)
Nationalization:
In 1951, Iran’s democratically elected prime minister, Mohammad Mossadegh, led the push to nationalize the AIOC, asserting Iran’s right to control its resources.
This decision was overwhelmingly popular in Iran but deeply opposed by Britain, which saw it as a threat to its strategic and economic interests.
British Reaction:
Britain imposed a global embargo on Iranian oil and sought to destabilize Mossadegh’s government.
The crisis severely damaged Iran’s economy as it struggled to sell its oil on the international market without the technical expertise or access to refineries provided by the AIOC.
Operation Ajax:
In 1953, the United States and Britain orchestrated a coup, known as Operation Ajax, to overthrow Mossadegh. The CIA and MI6 supported the reinstatement of the Shah of Iran, who returned to power with a pro-Western stance.
Following the coup, Iran’s oil industry was brought back under Western control, though under a consortium that included multiple international oil companies, with the AIOC retaining a significant role.
Rebranding as BP
Post-Crisis Changes:
In 1954, the AIOC rebranded itself as British Petroleum (BP), marking a new phase in its corporate identity.
While BP expanded its operations globally, its legacy in Iran remained controversial.
Global Expansion:
Throughout the latter half of the 20th century, BP became one of the world’s largest oil companies, diversifying its operations beyond the Middle East.
Legacy and Impact
In Iran:
The history of the AIOC is deeply tied to Iranian nationalism and resentment toward foreign exploitation. The nationalization crisis and 1953 coup are seen as pivotal moments in Iran’s modern history, sowing the seeds of distrust toward the West.
The 1979 Iranian Revolution ultimately led to the full nationalization of Iran’s oil industry under the control of the National Iranian Oil Company (NIOC).
Geopolitical Influence:
The AIOC exemplifies how oil became a central factor in 20th-century geopolitics, influencing foreign policy and global power dynamics.
The 1953 coup set a precedent for Western intervention in the Middle East, with long-term consequences for regional stability.
BP Today:
BP remains one of the largest multinational energy companies in the world, but its history with the AIOC and Iran is often cited in discussions of corporate ethics and imperialism.
Advertisement:
- Used Book in Good Condition
- Woodward, Guy H. (Author)
- English (Publication Language)
- Painter, David S. (Author)
- English (Publication Language)
- 324 Pages - 01/10/2023 (Publication Date) - The University of North Carolina Press (Publisher)
- Spiritual oil can be used for anointing candles, altars and other ritual tools
- Specially crafted to enhance spiritual practices, rituals, and meditations.
- Packaged in a compact, easy-to-use bottle, our Spiritual Oil is convenient for both personal and on-the-go use. Perfect for maintaining your spiritual...
- Amazon Kindle Edition
- Engdahl, F. William (Author)
- English (Publication Language)
- Hardcover Book
- Bamberg, J. H. (Author)
- English (Publication Language)
- Bamberg, J. H. (Author)
- English (Publication Language)
- 668 Pages - 07/30/2009 (Publication Date) - Cambridge University Press (Publisher)
We get commissions for purchases made through links on this website. As an Amazon Associate we earn from qualifying purchases.
Comments