Székelydálya | What Is A Red Line Agreement
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What Is A Red Line Agreement

15 ápr What Is A Red Line Agreement

The Red Line, with the As-Is agreement, marked the structure of foreign ownership and the pace of oil development in the Middle East. As a result, Gulf Oil (now owned by Chevron), the original part of the IPC agreement (which subsequently withdrew), became an active candidate for part of the Kuwait concession, in part because its participation in the CPI prevented it from seeking promising concessions elsewhere in the Gulf. Gulf`s success in winning a share defied expectations that Anglo-Persian (APOC) would be able to monopolize Kuwait, then a British protectorate. The red line prevented APOC and U.S. CPI partners, particularly standard New Jersey oil (now Exxon) and New York Base Oil (now Mobile), from seeking concessions in Saudi Arabia. The rich fields of eastern Saudi Arabia were discovered by Casoc, a subsidiary of Standard Oil of California (now Chevron). In 1936, Texaco bought half of Casoc. No Red Line company either. America feared the depletion of oil under its own country and the return of the “Gasolineless Sundays” and sought access to the smartest prospects – the Middle East.

To reinforce fears, the demand for oil in America increased by 90% between 1911 and 1918 and the number of registered vehicles increased from 1.8 million to 9.2 million between 1914 and 1920. George Otis Smith, the director of the U.S. Geological Survey, warned that known U.S. reserves would have disappeared in exactly nine years and three months – which would have been before 1930. This influenced the price of oil to rise and encouraged the government to help oil companies find foreign deliveries. Thus, fear of bottlenecks and competition helped encourage U.S. companies to look for oil wherever they could find it, with the support of the U.S. government – which meant the Middle East. The agreement became known as the Red Line Agreement because during negotiations between TPC members, none of the participants knew exactly what the borders of the Ottoman Empire were before the war. Therefore, in one of the last encounters, Gulbenkian drew the boundaries of memory on a map of the Middle East with a red pencil. Indeed, the issue had been resolved long before in the negotiations between the British and French foreign ministries. Despite this, the name hung on.

At the San Remo conference of 1919, the German share of TPC was transferred to France. The Americans, who were also the victors of the war, demanded a share in their loot and accepted 20 percent in 1922 (later increased to 23.7 percent). However, this has not put an end to the disputes that hinder the restructuring of the company. He insisted that the “self-denial clause” should be maintained in any new agreement. The French supported Gulbenkian with a share of 23.7%. not the other participants. The term “redlining” often refers to the process of processing and negotiating during the management of documents and commercial contracts, in which participants mark the text and follow the changes together. As part of the redlining process, one party receives the document and makes additions or comments, and the red text is displayed in a special color, so that the other party (or party) can easily track the changes without having to spend time looking for changes. After the “blood of victory,” oil was associated with post-war politics, with oil at the heart of nations` strategies. Britain and France wanted control and influence of Mesopotamia (Iraq), as it was believed that the region had considerable oil potential. The British believed that they had secured their reserves with Anglo-Persian oil; However, the political composition of the region had changed.

The French had secured access to the Mosul area in present-day northern Iraq. In 1912, before the First World War, the British became suspicious and worried by finding the Turkish Petroleum Company (TPC) also in the area interested in concessions.