Background

In March 1938, oil was discovered in Saudi – six years after its formation. Us oil companies had obtained the concession in Saudi Arabia. Then, the war broke out. During the war years, the US government built up the necessary infrastructure, e.g., pipelines, storage tanks, and a loading port, etc. The country began producing and exporting oil in earnest since then. Due to the fact that oil concessions in the Middle East were single company –single country issues. That is a single western company held the concession for the entire country i.e. BP for Iran, Exxon for Saudi Arabia, Mellon for Kuwait, etc. Pricing of oil was done through a device called the “posted price”, which was dictated to by the oil companies. Based on this, a revenue split was done, between the companies and governments-using the “posted price. The split was normally 50/50.

In the 1950s, the global oil demand was increasing, while production capacity was growing still more rapidly.  Always in search for higher revenues, the exporting countries, sought to gain them by increasing the volume sold, rather than by raising prices. More oil was in search for markets than there were markets for oil. As a result, the companies were forced to offer bigger and bigger discounts on the oil they sold.

Discounting was leading to a divergence in the “posted” or official price, which was held constant, and the actual market price at which the oil was sold, was dropping. Taxes and royalties were computed against the “posted” price. As discounting spread, a gap ensued between the market vs the posted price.  Because of the discounting, the producing countries share of the “posted “price increased to between 60 and 70%. While the oil companies had to accept fewer profits.

To compound this problem, the Soviet Union re-entered the oil markets in the late 1950s. Between 1955 and 1960, Soviet oil exports doubled, making it the second largest oil producer, after the US. For the oil companies of the 2 families, the only way to keep the Russians at bay was the competitive response-price cuts.

In early 1959, BP made the first move, by reducing the posted price of $1.80 per barrel – by 10%.  Its action instantly set off a torrent of denunciation from the oil exporters. With the stroke of a pen, a major oil company had unilaterally slashed the national revenues of the oil producers. The exporters were galvanized into action, with the two leading oil ministers furious- Juan Alfonso of Venezuela and Abdullah Tariki of Saudi Arabia.

At the same time, Arab nationalism was on the rise. This was prompted by the CIA, who wished to evict the European colonial powers from Africa, Asia and the Middle East. Thus, the CIA encouraged Arab nationalism. This was evident with Nasser being installed as Egypt’s new ruler, after getting help from the CIA to throw the British out of Egypt, and its control of the Suez Canal.  Nasser’s motto was “oil for the Arabs”, and “why should Arab oil be controlled from New York, London or Paris”. This was between 1953 and 1956.

Just 3 years earlier, Iranian nationalist toppled the Shah and nationalized BP’s holdings in Iran. London turned to New York for Help. In return for conceding a 40% share of Iran to the Rockefellers, the CIA and MI6, teamed up to topple Mossadeq and re-install the Shah.

Just after the Rothschilds (Israel, Britain & France) were kicked out of the Suez Canal by the Americans, David Rockefeller realized that it would serve his interests better if the oil exporters had some say in pricing and control over their oil. And, thus, a far-reaching plan was put into motion.

Changing The Equation

In April 1959, the Arab Oil Congress held its meeting in Cairo. It was mostly a technical meeting. In attendance were the two most anti- western oil company ministers- Abdullah Tariki and Juan Alphonse. And then there was Miss Wanda Jablonski- a journalist working for Petroleum Weekly-(an American/Rockefeller paper), and later, editor of Petroleum Intelligence Weekly (this was a promotion by the Rockefellers as she played a vital role in the formation of OPEC). This was a great position to walk the halls of the oil ministries of the producing countries, meet the important players, and obtain intelligence and information for the big western oil companies. She knew everyone one important in the industry, and, most importantly, all the key players knew her well. She provided a channel of communication and intelligence in the industry’s great years of global expansion.

Anyway, the “match-maker” introduced Tariki to Juan Aphonse at the 1959 Cairo meeting. The 2 men hit it off greatly, as they both shared the same vision and aspirations for their countries. Under great secrecy, the two of them devised a “gentleman’s Agreement”, and persuaded the oil ministers to sign it. At its core, the Agreement provided the following ideas, which were implemented over the next decade. And they were :- The governments must establish an Oil Consultative Commission, that they defend the price structure, they establish national oil companies, build up their domestic oil refining capacity, move downstream and become more integrated in order to “assure stable markets” for themselves, and thus better protect government revenues. In addition, the governments were urged to jettison the 50/50 split in favor of a 60/40 split.

The Gentleman’s Agreement, though secret, was a milestone in the changing dynamics of the oil industry. It marked the first steps towards creating a common front against the oil companies.

 The Rockefellers started the ball rolling. As the surplus oil was pushing down prices, Exxon, on August 9^th, 1960, with no direct warning to the exporters, announced a 7% reduction in the posted price- from $2 to $1.86. The other oil companies followed suit.

The reaction on the part of the oil producers was furious, as Exxon had made a significant slice in their national revenues. Within hours of the Exxon announcement, Juan Alfonso flew to Beirut, and met up with Tariki. Iraq quickly invited all the delegates to Baghdad to decide going forward. In September, the oil ministers of Saudi Arabia, Kuwait, Iran, and Venezuela arrived in Baghdad.

On September 14^th, 1961, a new entity had been established with which to confront the international oil companies. It was called the Organization of Petroleum Exporting Countries – or OPEC, and it made its intentions clear: to defend the price of oil.

To the oil companies, the newly created OPEC did not seem threatening or imposing. Indeed, OPEC could claim only two achievements in its early years. It ensured that the oil companies would be cautious about taking any major decisions unilaterally, without consultation. And they would not dare cut the posted price again. Beyond that, OPEC had little to show for its first decade. In all the member countries, the oil in the ground actually belonged by contract to the companies, thus limiting the countries’ control.

Almost as soon as OPEC was established, its member countries lost what had been their almost total grip on world oil exports. Many new oil provinces were found and opened up in the 1960s, adding to the supplies that were swamping the markets.

Then, in June 1967, the Six-Day war between Israel and the Arabs broke out, resulting in an Arab defeat. The Arab oil exporters instituted an oil embargo on the West. But, due to ample supplies, the oil embargo was a failure. Then in the 1970s, there was a dramatic shift in world oil. Demand was catching up with supply. The US ran out of surplus capacity- this meant that the “security margin” upon which the Western world had depended was gone.

All of these issues gave David Rockefeller an idea. Let’s go through them:-

• The surplus was vanishing
• Demand was increasing
• The Arab’s first oil embargo was a failure, but this idea would germinate in David’s mind until he revealed an updated plan for it in May 1973-The Bilderberg meeting in Sweden
• Egypt’s leader Nasser passed away in September 1970
• The Arab humiliation of 1967 needed to be re-addressed in a way that brought the Arab pride home
• Its key rival, Britain, just withdrew east of Suez, thus reducing its interference in the Middle East
• On the flip side of the coin, the financial markets were under extreme pressure, due to America’s failure to revalue gold higher.

Extrapolate all these factors a few years down the line. David knew that, at some point in the future, the US would have to close the gold-discount window, in which it converted the dollars held by foreign central banks into gold at the Fed in New York. Were this to happen, it would have a very great, and negative effect on the dollars standing in the world. This scenario must be avoided at all costs. But, how to go about it? Let’s see how David prepared the ground.

Reducing the Surplus

 In 1971, off the coast of Santa Barbara, California, an oil leak took place. Rockefeller-financed environmental groups were formed to “protect the environment” made such a noise, which provided the pretext for Washington to cancel all off-shore oil drilling.

In the Middle East, in 1969, the CIA put Ghaddafi into power in Libya, via a coup. The TAPLINE oil running from Saudi Arabia and Iraq to a Syrian port on the Mediterranean was blown up. A year earlier, the CIA conducted another coup in Iraq, wherein it installed Saddam Hussein into power. These two leaders were ultra-nationalists, who began pushing the oil companies for ownership of the oil.

Soon, across the whole region, foreign control of the oil industry was coming to an end. This is what David Rockefeller desired, knowing his long-term plan to replace the gold-dollar with the dollar being backed by oil.

In gaining control over the oil companies, by participation or outright nationalization, the exporting countries also gained greater control over prices. These countries were now seeking higher prices, instead of pushing more volume. This was due to the tight supply-demand balance.

On 15^th August, 1971, David Rockefeller instructed President Nixon to close the convertibility of foreign dollars into gold. From this point on, the dollar had no longer had gold backing. The resulting 40% drop in the dollar’s value over the next 2 years brought about the conditions that David knew was coming. In May 1973, at the Bilderberg meeting in Sweden, the new plan was laid out to the power elite- to prepare for a 400% increase in the oil price. The aim of the meeting was not TO STOP THIS OIL PRICE INCREASE, but, rather, how to “recycle” this soon to come flood of petro dollars.

All the conditions were perfect for the increasing Arab frustration over Israel’s occupation of Arab Egyptian territory. The exporters now owned their oil, finally. The market was moving from surplus to shortage. As late as 1970, there was about 3 million bpd of excess production capacity in the world outside the US, most of it concentrated in the Middle East. By 1972, this surplus capacity was reduced to 1.5 million bpd. By September 1973, just as the October War broke out in the Middle East, surplus capacity was down to 500,000 bpd! The total global production in the non-communist world was 50 million bpd.  This translated to just 1% of global production capacity; which is a very dangerous position to be in. Not only in oil, but in almost any industry even in the absence of politics, a 99% utilization rate and a 1 % security margin would be considered an extra-ordinarily precarious supply-demand balance. Politics was adding to the dangers.

The next step was for these oil exporting countries to assume full ownership of the oil assets in their countries. Between 1968 and 1972, this phase was carried out.  Thus, by October 1973, all the oil exporters had sovereign control of their oil. It was not owned by the oil companies any more.  More on this will follow when we discuss the geopolitics of oil.

What the powerful men grouped around Bilderberg had decided that May was to launch a colossal assault against industrial growth in the world, in order to tilt the balance of power back to the advantage of Anglo-American financial interests (meaning the 2 families) and the dollar. In order to do this, they were determined to use their most prized asset – control of the world’s oil flows. Bilderberg policy was to trigger a global oil embargo, in order to force a dramatic increase in oil prices.

Never in history had such a small circle of interests, centred in London and New York, controlled so much of the world’s economic destiny. Rockefeller‘s geopolitical thug, Henry Kissinger, spearheaded the next phase of this project.  In short without going into the details, Kissinger orchestrated the entire lead up to the outbreak of the war, including while the war was on.  The result- brilliantly manipulated, was that the price of oil shot up by 400% from its price a year earlier.

On October 6^th, 1973, war broke out between Israel on one side against Egypt and Syria on the other. The US re-supply of arms to Israel resulted in the imposition of an oil embargo to the West, with production cut-backs, plus the increases in prices served the Rockefeller agenda. Prices shot up by 400% in just a few months after the outbreak of war; PRECISELY, as determined at the Bilderberg meeting 8 months earlier. The world blamed the “greedy Arab sheiks”, while the real author, David Rockefeller was laughing all the way to the bank (to his banks- Chase Manhattan, Citicorp, and the Federal Reserve). His oil companies grew to become the biggest companies in the world (Exxon, Mobil, Chevron, etc.)

The creation of OPEC paved the way for the 1973 oil shock, and the raising of the oil price by 400%. The Seven Sisters laughed all the way to the bank. And OPEC? They took the blame in the eyes of the public!

The next step was to enforce this “new petro-dollar” system.  The key was Saudi Arabia. As the largest oil producer in OPEC, Saudi Arabia had the clout to get what it wanted.  The plan was for Saudi Arabia to announce that from now on, all oil sales will be priced in dollars, and in no other currency! The Saudis were resisting, and hesitating. In November 1974, the Saudi Foreign Minister, Omar Saqqaf and the head of SAMA (Saudi central bank) Anwar Ali went to the US to discuss this issue. Both had instructions not to agree to anything, but to report back to King Faisal first. Because these two Saudi officials were not in agreement with many of the fine points proposed by the Rockefeller people, Nelson Rockefeller made a decision to eliminate them. On November 14, Anwar Ali was found dead in New York’s Waldorf Astoria Hotel. That same day, in Washington, the Saudi Foreign Minister, Omar Saqqaf, was also found dead! It is not a coincidence. The CIA (the Rockefeller’s personal intelligence agency – it was created from taking various parts of the Standard Oil intelligence operations to form the CIA, in 1946/47), are masters at making murders seem like a suicide or a natural death.

In late 1973, the Nixon administration described a plan of attack against Saudi Arabia to seize its oil fields in a classified Joint Intelligence Report entitled “UK Eyes Alpha”. British MI5 and MI6 were informed.  The oil embargo had been over for only three weeks but “Eyes Alpha” suggested that the “US could guarantee sufficient oil supplies for themselves and their allies by taking the oil fields in Saudi Arabia, Kuwait, and the Gulf State of Abu Dhabi”. It followed that “preemptive” action would be considered, and that two brigades could seize the Saudi oilfields and one brigade each could take Kuwait and Abu Dhabi.

In February of 1975 the London Sunday Times revealed information about this.  The plan, drawn up by the Pentagon, was code named “Dhahran Option Four” and provided for an invasion of the world’s largest oil reserves, namely Saudi Arabia.  See below.

The Take-Over Plan
(Source: London Sunday Times, February 1975, retouched by IRmep)

And this was followed in the same month of  February (just before King Faisal’s murder) of the same year by an article in Harper’s Magazine by a Pentagon analyst using a pseudonym, Miles Ignotus, emphasizing the need for the US to seize Saudi oilfields, installations and airports entitled “Seizing Arab Oil”. According to James Akins, former US diplomat, the author was Henry Kissinger, Secretary of State at the time. Kissinger has neither confirmed nor ever denied the charge.

Further, a report entitled, “Oil Fields as Military Objectives: A Feasibility Study”, was produced for the Committee on Foreign Relations. In this report, the CRS stated that potential targets for the US included Saudi Arabia, Kuwait, Venezuela, Libya, and Nigeria. “Analysis indicates … [that military forces of OPEC countries were] quantitatively and qualitatively inferior [and] could be swiftly crushed.”

King Faisal and the Saudi royals got the message – loud and clear! There was no more opposition to David’s Petro-Dollar System! Suddenly, an unwanted currency – the US dollar – became the most sought after currency. Nations need to import oil, and to pay for oil imports, one had to have dollars. What a turnaround for the dollar. Just to re-inforce this message to the Saudis, the Saudis then killed King Faisal, using a Saudi prince (who was brain-washed through the IA’s MK Ultra program). At this point, the Saudis gave in. One consequence of the directed recycling of these petrodollars into London and New York was the emergence of American banks as the giants of world banking, paralleling the emergence of their clients, the Seven Sisters oil giants, as giants of world industry. The Anglo-American oil and banking giants so overwhelmed the scale of ordinary enterprise that their power and influence seemed invincible. Kissinger and David Rockefeller had in effect replaced the old gold exchange standard (controlled by the Rothschilds) of the post-war world with their own “petrodollar” standard, which the Rockefellers controlled.

Kissinger left nothing to chance. David Mulford, heading White Weld & Co’s London Eurodollar operations, was appointed director and principal investment advisor to SAMA, in January 1975.  His job was to guide the Saudi petrodollar investments to the correct banks in London and New York. The Bilderberg scheme was operating just as planned.

The Pricing of Oil

Now that the Rockefeller Empire managed to move the ownership of oil into the hands of the producers, the next two steps was to control both the price and volume of oil. During the mid- 1970s, the commodity traders entered the picture. Until 1973, oil was treated as just another commodity. With the rise in oil prices, plus embargoes, the traders got into the picture. Since the exporting countries wanted better deals, the commodity traders got into the action. They eventually became very large traders in oil, and soon , this group of traders, backed by massive loans from Wall Street, the price of oil futures soon gave way to “spot trading” of oil . From this point on, the oil exporters lost control over pricing.

For the first time, global oil prices were influenced by traders speculating as proprietors, regardless of the producers or the customers. OPEC hated their game. As will be seen in the mid-2000s, we saw how the oil price went from $40 to nearly $150 by October 2008. This was against the wishes of the oil producers, who cried “foul” against the manipulation in the oil prices. The stock market crash and the financial chaos that hit the world in October 2008, was not an accident. Deliberately planned and executed, it was a classic piece of financial warfare, done for the benefit of the Rockefeller Empire, its dollar standard, and as well as a payback to the Rothschilds in Europe to “giving wrong advise” to Saddam Hussein back in September 2000, when the French Rothschilds persuaded Iraq’s leader to switch his oil sales from the dollar to the euro. This was the cause of the Iraq war of 2003.

From this, the only thing left for the Rockefeller Empire is to control the volume of oil production and its sales. The key to control of this is Saudi Arabia, as OPEC’s largest producer. And here we will see how this has been put to great effort by the Rockefeller family, working in conjunction with Saudi Arabia.

In 1985, David Rockefeller sent CIA head William Casey to Riyadh. Against the background of the Soviet war and occupation in Afghanistan, with the West and Saudi Arabia backing the anti-Soviet mujahedeen, and the Iraq-Iran War raging next door, it was a perfect chance to cripple these two countries (Soviet Union and Iran). The US and Saudi were on the same side against Iran and Soviet Union. Casey suggested that to cripple their economies, it was necessary to reduce their income from their oil exports. The best way to achieve this was to produce so much oil that the price will drop. Deal done! The Saudis overproduced – from 2m to 10 million bpd. The oil price dropped from $25 to $10 within a matter of months. The Soviet Union lost about $20 billion in reduced foreign income. This helped to devastate the economy, and which resulted in the Soviet withdrawal from Afghanistan, and eventually the Soviet Union collapsed in 1990/91. This collapse in the oil price also brought about a truce in the 8-year long Iraq/Iran war. Thus, the manipulated drop in the oil price eliminated the Soviet Union and ended in the defeat of Iran in the war next door.

In 2014, the US coup in Ukraine took place. Putin took over the Crimea, which blew a big hole in the American geopolitical plan for the region. Western anger knew no bounds. Sanctions on Russia were applied, but it wasn’t enough. In Iran, the secret Rockefeller-Iran deal in relation to the Golan Heights was collapsing. It was time to punish both Russia and Iran.

Once again, the Saudis and the Rockefeller Empire made a deal to, once again, overproduce. The stunning drop in oil prices, from a peak of $115 in June 2014 to under $35 at the end of February 2016 was a huge development then. But, this time, both Russia and Iran survived due to a changing global economic and political climate. The effect on the global oil industry was a reduced investment environment (taking into account the crazy Climate Change Agenda). Thus, global investment  in production and exploration falling from $700 billion in 2014 to $550 in 2015, and gradually declining till now, where it is roughly $300 billion a year.

David Rockefeller realized that OPEC will not listen to Western financial advice on controlling production and volume. So, if they won’t reduce volume, then we will make sure that we will no longer fund the industry as before. Reduced funding means reduced production a few years down the line. And, that’s exactly we are in the position today: rising demand and not enough production.

Enter MBS & the Aramco Listing

In 2015, a new, young leader came to power – Mohammed bin Salman – the Crown Prince of Saudi Arabia. He was different from his uncles: never studied in the West; taught very well by his father, King Salman. He assumed office during a time of financial crises in the Kingdom due to low oil prices.

MBS wanted to list Aramco on an international stock exchange. It would be the world’s largest listing, and whichever city got it, it would be a huge boost to their prestige, and open the door to future profitable deals. The choices were London, Hong Kong, Tokyo and New York. The Rockefeller Empire wanted it in New York, threatening MBS with dire consequences if it did not do so. When the Chinese came with a great offer (prepared to buy the entire 5% stake on offer, and privately). MBS valued Aramco at $2 trillion, thus a 5% stake would be worth $20 billion. The Rockefeller Empire insisted that Aramco be valued at $1 trillion, and must be listed in New York. The Rockefeller Empire has been in the oil business since 1865. Oil has been the foundation for the family’s wealth and power. Nearly 157 years have passed since then. This family knows the oil business cold. And its vital ally in dominating the global oil industry since 1945 has been Saudi Arabia. The value of Aramco is close to $10-20 trillion. This includes the oil reserves (official = 260 billion barrels; unofficially about 750 billion barrels plus large gas reserves plus the infrastructure above ground), plus much more).   Its production costs are the lowest in the world ($1), and its profits are larger than the other 6 oil majors COMBINED!

 There have been many disagreements between the Rockefeller and Saudi families since the 1960s, and many times these were patched up. To maintain its hold on global empire, New York has to make sure that the Aramco listing would be done on its terms. This, MBS, would not allow. Thus, MBS has, to date, survived several assassination attempts on his life, as well as two attempted coups against him.

In the eyes of the Rockefeller Empire, they do know for a fact that Aramco’s oil reserves exceed 500 billion. By placing a value of $2 trillion – MBS is listing Aramco at a discount of 80%! And, still the Rockefellers are not satisfied, unless the valuation is pegged at $1 trillion, and the listing is done in New York. MBS refused the Rockefeller offer. His geopolitical moves did not suit New York. Subsequently, MBS survived several assassination attempts, being wounded on the hip in one attempt. The CIA and its assets failed time and time again. This brought about a deep hatred for the US within MBS.

So, they conducted a false flag operation, on Saudi Arabia.  New York gave the order, and this hit was contracted out to Israel. On September 14, 2019, drones hit the Abqaiq refinery complex, as well as an adjoining oil field, Al Khurais. This shut down 6 million bpd of production. The Abqaiq complex is the largest of its kind in the world and is capable of processing close to 12 million bpd.  Like we said earlier, the Rockefellers know the oil business cold. They also know the strategic points in an oil refining and processing complex, more than anyone else does. They went for maximum damage per missile and drone attack. This was a clear message from the Rockefellers to MBS.  Play ball – or else.

What was the impact on the Abqaiq refinery? Analysts have identified at least 17 hits. The attacks on the Abqaiq refinery had involved a dozen cruise missiles and more than 20 drones. Abqaiq is the world’s largest oil processing facility, and about two-thirds of Saudi Arabia’s total output is refined there. Some seven million barrels of oil are processed each day. The region of the Persian Gulf –is one of the most heavily surveilled airspaces in the world, especially Iran and its close neighbors.  An attack like this would have to be monitored by multiple early-warning systems. Nothing moves in the air without, at the least, American, Israeli, Russian, and Iranian early-warning systems in place. If Iran was responsible for this attack, there would have been ample proof. Immediately after the attack, and for days after, Iran denied any responsibility for this. It means highly sophisticated means, using the latest stealth technology, was used in this attack. This would mean only the US or Israel would have the means.  And the main question is –“who benefits?” The answer to this is obvious.

 After taking all these factors into account, MBS decided to list Aramco in Saudi Arabia, allocating the 5% stake to and its shares reserved for the local Saudi citizens and entities. It gives the world great hope that a young leader- MBS- has the guts to stand up to the threats and bullying by New York.

The story continues in Part 2 …..