The Prize: The Epic Quest for Oil, Money, and Power

“With the advent of drilling, there was no shortage of rock oil. The only shortage now was of whiskey barrels, and they soon cost almost twice as much as the oil inside them.”

This quote employs a humorous tone to illustrate the unintended consequences of the oil boom, emphasizing the rapid and chaotic nature of early oil industry logistics. The disparity in the cost of whiskey barrels versus the oil they contained reflects the sudden and unanticipated supply chain challenges. It also subtly points to the broader economic and societal impacts that the nascent oil industry would have, affecting not just energy but ancillary industries and markets.

“While the market for oil was growing at an extraordinary rate, the amount of oil seeking markets was growing even more rapidly, resulting in wild price fluctuations and frequent collapses.”

This quote encapsulates the challenges of the burgeoning oil industry, which was marked by overproduction and market instability. The “wild price fluctuations and frequent collapses” illustrate the unsustainable nature of the industry at the time, setting the stage for Rockefeller’s efforts to bring order and stability through consolidation. This context underscores the necessity and impact of Rockefeller’s strategic maneuvers to dominate and stabilize the oil market, ultimately leading to the establishment of Standard Oil as a powerful and influential entity.

“Petroleum, said Standard Oil’s chief foreign representative, has ‘forced its way into more nooks and corners of civilized and uncivilized countries than any other product in business history emanating from a single source.’”

This quote emphasizes the pervasive influence of petroleum by comparing its distribution to other historical products. The representative’s stated contrast between “civilized and uncivilized countries” betrays inherent social biases even as the passage illustrates the universal demand and utility of oil, which clearly transcended cultural and geographical boundaries. The phrase “forced its way” is designed to convey the aggressive market strategies and the unstoppable spread of petroleum. The use of hyperbole in “more nooks and corners [...] than any other product” underscores the unparalleled global dominance achieved by Standard Oil, highlighting the company’s monumental impact on the oil industry.

“The ‘new light’ was now derived from electricity, not kerosene. The natural gas industry had to shift its markets to heating and cooking, while the United States market for kerosene, the staple of the oil industry, leveled out and was increasingly restricted to rural America.”

Yergin highlights the rapid technological change that disrupted the established oil industry, using imagery to illustrate the transition from kerosene to electricity. The phrase “new light” symbolizes innovation and progress, while the term “leveled out” suggests a stabilizing but diminished role for kerosene in a market increasingly dominated by electricity. This shift underscores the theme of industrial evolution and the need for industries to adapt to technological advancements in order to survive.

“Yet just as one market was about to slip away, another was opening—that of the ‘horseless carriage,’ otherwise known as the automobile.”

This passage captures the volatile and dynamic nature of the industrial economy. Yergin uses the term “horseless carriage” to evoke the novelty and excitement of early automobiles, signaling a revolutionary change. This quote illustrates the oil industry’s resilience and its capacity to find new avenues for growth amidst market upheavals, reflecting broader themes of innovation and economic adaptation.

“The use of oil made it possible in every type of vessel to have more gun-power and more speed for less size or less cost.”

Yergin’s inclusion of Churchill’s observation underscores the strategic imperative behind the shift to oil. The juxtaposition of “more gun-power and more speed” with “less size or less cost” succinctly conveys the multifaceted benefits of oil, reinforcing the logic behind the naval transition. This quote encapsulates the broader theme of technological innovation driving military strategy and the crucial role of resource management in national defense.

“As oil had been the blood of war, so it would be the blood of the peace. At this hour, at the beginning of the peace, our civilian populations, our industries, our commerce, our farmers are all calling for more oil, always more oil, for more gasoline, always more gasoline.”

This statement was made by Senator Bérenger, the director of France’s Comité Général du Pétrole, reflecting on the post-war demand for oil. Bérenger’s metaphor of oil as “the blood of war” and “the blood of the peace” underscores the vital role that oil has played both during and after the conflict. The repetition of “more oil, always more oil” emphasizes the growing dependency on oil for various sectors, highlighting the transition from its strategic military use to its essential role in everyday civilian life and economic recovery.

“If oil was power, it was also a symbol of sovereignty.”

This quote succinctly captures the dual nature of oil in the 20th century, for it was not only a vital resource for economic and military power but also a marker of national sovereignty. The metaphor of oil as a “symbol of sovereignty” emphasizes the intense and often contentious relationship between nation-states and oil companies, highlighting the fact that control over oil was both a practical and an ideological battleground.

“Mexico had recaptured the oil but could not develop or market it without foreign capital, while investors had little desire to bear the risk and expense of development without secure contracts and the prospect of profits.”

This quote encapsulates the dilemma faced by many resource-rich but capital-poor nations: the struggle to balance national control of natural resources with the necessity of foreign investment for development. By juxtaposing Mexico’s reclaimed sovereignty over its oil with the investors’ reluctance to engage without guarantees of profit, Yergin highlights the persistent clash between nationalist policies and capitalist imperatives: a recurring theme in global oil politics.

“Joiner mailed out a prospectus, which included Doc Lloyd’s fictitious description of the geology of East Texas, to the sucker list he kept. And somehow he scraped together the money to begin drilling on the farm of one Daisy Bradford in Rusk County.”

Dad Joiner, a savvy prospector, was determined to drill for oil in East Texas despite widespread skepticism. With the help of the dubious “Doc Lloyd,” he disseminated misleading information to potential investors in order to gather the necessary funds. This quote highlights the blend of deception and tenacity that characterized the early oil industry. Joiner’s use of a “sucker list” and a fraudulent geological report underscores the unethical tactics often employed in oil promotion.

“Expectation, as if indeed of a religious event, a promised miracle, hung in the air. Something would happen, people were sure, and they wanted to be there to see it.”

This moment describes the atmosphere in Joinerville, where thousands gathered in anticipation of a successful oil strike from Joiner’s well. By using a simile to compare the anticipation of an oil strike to a religious event, Yergin emphasizes the desperation and hope of the Depression-era populace. The passage illustrates the collective longing for a transformative miracle amidst economic despair. The use of religious imagery also conveys the fervent faith in oil as a savior, highlighting the cultural and emotional significance of oil discoveries during hard times.

“The shortage of liquid fuel was Japan’s Achilles’ heel.”

This quote summarizes the critical weakness of Japan’s war strategy during World War II. Yergin’s use of “Achilles’ heel” invokes a classical allusion to emphasize the fundamental vulnerability that undermined Japan’s military efforts. This metaphor conveys the strategic importance of fuel in modern warfare and highlights how the lack of fuel critically impaired Japan’s ability to sustain its military operations, ultimately contributing to its defeat.

“The oil in this region is the greatest single prize in all history.”

This quote is from a member of petroleum geologist and oil executive Everette Lee DeGolyer’s mission, which informed the State Department of the vast oil reserves discovered in the Middle East, and particularly in Saudi Arabia. The phrase “greatest single prize in all history” employs hyperbole to emphasize the unprecedented scale and value of the oil reserves in the Middle East. This statement underscores the shift in global economic and political power that these resources would facilitate.

“Fill ’er up!”

The quote uses colloquial language to evoke the sense of urgency and excitement that accompanied the end of gasoline rationing. The phrase “Fill ’er up!” succinctly encapsulates the nation’s eagerness to return to normalcy and highlights the cultural importance of the automobile in postwar America. This eagerness for oil underscores the emerging consumerism and the reliance on petroleum that would define the postwar era.

“The canal’s military importance was made starkly clear in World War II when the British mounted their stand at El Alamein to defend the canal against the advancing Rommel.”

This quote refers to the critical role of the Suez Canal during World War II, emphasizing its strategic value as a vital supply route for the Allies. The Battle of El Alamein, fought in 1942, was a turning point in the North African campaign during which British forces successfully halted the advance of German and Italian troops led by General Erwin Rommel. The quote highlights the Suez Canal’s pivotal military significance, which extended beyond its commercial value.

“The sheer abundance of Middle Eastern ‘elephants’ led inevitably both to vigorous efforts by new players to get into the game and to fierce competition for markets, a nonstop battle in which price cuts were the most potent weapon.”

The use of the term “elephants” as a metaphor for giant oil fields emphasizes the scale and significance of these discoveries in the Middle East. The phrase “nonstop battle” conveys the relentless nature of the competition. Additionally, the assertion that “price cuts were the most potent weapon” illustrates the fact that economic strategies were employed aggressively to gain an edge. These dynamics highlight the fierce, cutthroat environment of the global oil market during this period.

“In these Cold War years, many in the West believed that the intensifying Soviet petroleum campaign represented not only a commercial venture, but also a political assault, the purpose of which was to create dependence in Western Europe, weaken the unity of NATO, and subvert the Western oil position in the Middle East.”

This quote captures the pervasive fear and suspicion of Soviet motives, highlighting the intersection of economic and geopolitical strategies during the Cold War. The phrase “political assault” emphasizes the perceived intention behind the Soviet actions, suggesting that their oil exports were a calculated effort to destabilize and weaken the West, rather than a mere attempt to secure the economic necessity of hard currency. This perception underscores the ideological and strategic dimensions of the global oil market during this era.

“If it can be said, in the abstract, that the sun energized the planet, it was oil that now powered its human population, both in its familiar forms as fuel and in the proliferation of new petrochemical products.”

The observation connecting oil to the sun’s energy emphasizes oil’s indispensability and its pervasive influence on modern life. By framing oil as the new source of power for humanity, Yergin underscores its role in driving economic growth and technological advancement, paralleling the fundamental necessity of solar energy for life on Earth. This comparison effectively conveys the magnitude of oil’s impact on the global stage.

“By 1973, oil had become the lifeblood of the world’s industrial economies, and it was being pumped and circulated with very little to spare.”

This quote encapsulates the immense dependency of industrial economies on oil, highlighting its status as a crucial resource. The metaphor of oil as “lifeblood” employs personification, emphasizing its essential role in sustaining economic activity. Additionally, the phrase “with very little to spare” foreshadows the vulnerability and potential for crisis due to tight supply margins.

“The United States would no longer be able to increase production to supply its allies in the event of a crisis, and the United States itself was now, finally, vulnerable.”

This quote underscores a pivotal change in the geopolitical landscape, marking the end of U.S. energy dominance. The word “vulnerable” highlights the strategic and economic risks faced by the United States. The shift from being a supplier to a dependent consumer in the global oil market signifies the increasing influence of Middle Eastern oil producers. The passage also points to the broader implications for U.S. foreign policy and national security.

“Oil prices were at the heart of world commerce, and those who seemed to control oil prices were regarded as the new masters of the global economy.”

The description of oil prices being “at the heart of world commerce” emphasizes their critical importance in driving the global economy, asserting that control over oil prices equated to immense power. The phrase “new masters of the global economy” underscores the dramatic shift in influence from Western oil companies and nations to OPEC, highlighting the significant impact of this change on international relations and economic policies.

“In total, the massive spending of the exporting countries, combined with the galloping inflation of their overheated economies, ensured that their financial surpluses would soon disappear.”

This quote describes the economic phenomenon following the surge in oil prices, whereby oil-exporting nations experienced unprecedented financial surpluses which they rapidly spent on various projects, causing inflation and the eventual depletion of their financial reserves. The use of “galloping inflation” conveys the rapid and uncontrollable rise in prices within the oil-exporting nations as a direct consequence of their sudden wealth.

“‘We’re going down’ were her last words, before one of the young Iranians, a picture of Khomeini pinned to his shirt, grabbed the phone out of her hand.”

This quote is from Elizabeth Ann Swift, a political officer at the United States embassy in Tehran, who was reporting on the invasion of the embassy by a mob of young Iranians. Swift’s use of the phrase “We’re going down” captures the dire and hopeless situation faced by the embassy staff. The image of the young Iranian with a picture of Khomeini pinned to his shirt underscores the fervent ideological devotion driving the attack, symbolizing the clash between American interests and revolutionary zeal in Iran.