Fig. 1.—Proportion of the world’s output of petroleum contributed annually by each of the chief producing countries, 1908-1917.
Aside from the control exercised by Great Britain through its protectorate relation over the petroleum resources of Egypt, control of the petroleum resources of the various countries is mainly by virtue of state sovereignty. This political control is in proportion to the strength of the government in the country exercising it. Recent developments whereby the British government becomes the majority stockholder of a corporation controlling the oil resources of Persia, practically transfer the political control, as well as the commercial control, of Persian petroleum from Persia to England. Mexico’s recently attempted firm political control of her vast petroleum resources depends for its success upon her diplomatic ability in dealing with the stronger governments of England and the United States, whose nationals have acquired a commercial control that is threatened by Mexico’s new and decided nationalistic policy.
COMMERCIAL CONTROL OF PRODUCTION
The commercial control of the world’s production of petroleum, as far as nations are involved, is determined in the main through direct ownership, of lands, leases and concessions, or by the control, through holding corporations, of subsidiary companies holding fee, leases, mineral rights or concessions of petroleum land. Except in Argentina, where the domestic petroleum industry is owned and operated by the state; in Germany, where the government participates directly in the financing of petroleum enterprises through the Deutsche Bank; and in Persia, where the British government owns a substantial interest in a company owning and operating extensive concessions, the commercial control of the petroleum industry is determined almost wholly by aggregations of private capital acting in their own interests.
Table 3.—Nationality and Extent of Control of Dominant Interest
| Country | Production in 1917 (barrels) | Nationality of dominant interests | Approximate extent of control by dominant interests (per cent.) | |
|---|---|---|---|---|
| United States | 335,315,601 | United States | 96 | |
| Russia | 69,000,000 | British-Dutch | 40 | + |
| Mexico | 55,292,770 | United States | 65 | |
| Dutch East Indies | 12,928,955 | British-Dutch | 100 | |
| India | 6,078,843 | British | 100 | |
| Persia | 6,856,063 | British | 100 | |
| Galicia | 5,965,447 | German | 100 | |
| Japan and Formosa | 2,898,654 | Japanese | 100 | |
| Roumania | 2,681,870 | British-Dutch | 36 | |
| Peru | 2,533,417 | United States | 70 | |
| Trinidad | 1,599,455 | British | 80 | |
| Argentina | 1,144,737 | Argentinian | 100 | |
| Egypt | 1,008,750 | British-Dutch | 100 | |
| Germany and Alsace | 995,746 | German | 100 | |
| Canada | 205,332 | United States[4] | 80 | - |
| Venezuela | 127,743 | British-Dutch | 80 | (?) |
| Italy | 50,000 | French | 96 | |
[4] By control of refining facilities.
So far as the author is aware, Canada is the only country in which the petroleum industry may be said to be controlled by foreign (United States) interests, this control being by virtue of an essential monopoly of pipe-line and refining facilities.
The preceding [table] shows, according to the best information available, the nationality and approximate extent of control exercised by the dominant interest in each of the principal oil-producing countries of the world in 1917.