Seven Sisters (oil companies)

"Seven Sisters" was a term coined in the 1950s by businessman Enrico Mattei, then-head of the Italian state oil company Eni, to describe the seven oil companies which formed the "Consortium for Iran" cartel and dominated the global petroleum industry from the mid-1940s to the 1970s.[1][2] The group comprised Anglo-Persian Oil Company (now BP); Gulf Oil, Standard Oil of California (now Chevron), Texaco (later merged with Chevron); Royal Dutch Shell; Standard Oil of New Jersey (Esso/Exxon) and Standard Oil Company of New York (Socony) (trading as Mobil now part of ExxonMobil).[3][4]

Prior to the oil crisis of 1973, the members of the Seven Sisters controlled around 85 percent of the world's petroleum reserves;[5] but since then, industry dominance has shifted to the OPEC cartel and state-owned oil companies in emerging-market economies, such as Saudi Aramco (Saudi Arabia), China National Petroleum Corporation (China), Gazprom (Russia), National Iranian Oil Company (Iran), Petrobras (Brazil), PDVSA (Venezuela), and Petronas (Malaysia).[1][6]

Composition and history

In 1951 Iran nationalized its oil industry, then controlled by the Anglo-Iranian Oil Company (now BP), and Iranian oil was subjected to an international embargo. In an effort to bring Iranian oil production back to international markets, the U.S. State Department suggested the creation of a "Consortium" of major oil companies.[7] The "Consortium for Iran" was subsequently formed by the following companies:

The head of the Italian state oil company, Enrico Mattei sought membership for the Italian oil company Eni, but was rejected by what he dubbed the "Seven Sisters" - the Anglo-Saxon companies which largely controlled the Middle East’s oil production after World War II.[1][9] British writer Anthony Sampson took over the term when he wrote the book The Seven Sisters in 1975, to describe the shadowy oil cartel, which tried to eliminate competitors and control the world’s oil resource.[10]

Being well-organized and able to negotiate as a cartel, the Seven Sisters were initially able to exert considerable power over Third World oil producers. However, in recent decades the dominance of the Seven Sisters and their successor companies has been challenged by the following trends:[1]

As of 2010, the surviving companies from the Seven Sisters are BP, Chevron, ExxonMobil and Royal Dutch Shell, which form four members of the "supermajors" group.

See also

References

  1. 1 2 3 4 Hoyos, Carola (11 March 2007). "The new Seven Sisters: oil and gas giants dwarf western rivals". Financial Times. Retrieved 20 October 2013.
  2. ↑ "Business: The Seven Sisters Still Rule". Time. 11 September 1978. Retrieved 24 October 2010.
  3. ↑ "MILESTONES: 1921-1936, The 1928 Red Line Agreement". US Department of State. Retrieved 18 August 2012.
  4. ↑ "Documentary: The Secret of the Seven Sisters". Al Jazeera. Retrieved 4 May 2013.
  5. ↑ Mann, Ian (24 January 2010). "Shaky industry that runs the world". The Times (South Africa). Retrieved 12 April 2016.
  6. ↑ Vardi, Nicholas (28 March 2007). "The New Seven Sisters: Today's Most Powerful Energy Companies". Seeking Alpha. Retrieved 12 April 2016.
  7. ↑ Beltrame, Stefano. Mossadeq: L'Iran, il petrolio, gli Stati Uniti e le radici della Rivoluzione Islamica, Rubbettino, 2009. ISBN 978-88-498-2533-6.
  8. ↑ "Company Profile". Chevron.com. Retrieved 9 August 2011.
  9. ↑ Italy: Two-Timing the Seven Sisters, Time, 14 June 1963.
  10. ↑ Henderson, Dean. The Four Horsemen Behind America's Oil Wars, Global Research, 26 April 2011.

Further reading

Documentaries

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