No brief survey of the petroleum industry would be complete were reference not made to a few of those remarkable commercial undertakings in various parts of the world whose interests are not only closely associated with it, but to whose energies has been due much of the expansion that has been witnessed in every direction during the past few decades. It is safe to assert that, had it not been that the petroleum industry has, in its various industrial and commercial aspects attracted the attention of some of the finest financial and business houses in the world, the wonderful progress which has been recorded would, for the most part, have been impossible.

The first place must of necessity be given to that much maligned amalgamation of capital, the Standard Oil Company of New Jersey, which was formed as far back as 36 years ago by Mr. John D. Rockefeller and his associates for the primary purpose of developments in the petroleum industry of the United States. At that time, the petroleum production of America had become quite a factor in commerce, but it was, obviously, in want of a guiding hand which could not only place it upon a basis of solidity, but which would tend to remove much of that gambling element which had become almost part and parcel of all developments. The Company, at the head of which were several gentlemen who had already made themselves famous in the land of oil, launched out in several directions, and, through the numerous subsidiary concerns which it soon created, it owned very extensive oil-bearing properties in practically every oil-field of the States, while it built quite a network of pipe-lines for the conveyance of the oil from the fields to the refineries, and from the refineries to seaboard. It erected and equipped oil refineries, and, so as to provide the much-needed foreign markets for American petroleum products, it built its fleet of oil tankers; and, lastly, opened depots for the distribution of American petroleum products all the world over.

At one time, the ultimate success of its vast operations was open to question, and many there were who predicted that one day it would ignominiously pass on to the list of oil failures. Indeed, it nearly came to this on one or two occasions, and it was only owing to the remarkable perseverance of those at the head of the Company’s affairs that prevented headlong disaster. The Standard Oil Company soon became an integral part of the petroleum industry of the United States, with which it grew up and steadily assumed a position of world-wide importance, though one which was not unassailable. Its ultimate success was the chief cause for the multiplication of its critics, and volumes have been written of its wrong-doings by writers whose knowledge of the petroleum industry was mostly based upon wilful ignorance of facts. Consequent upon a decision of the United States Supreme Court some seven years ago, which held that the Company was violating the Anti-Trust Law of 1890, the Standard had to rid itself of its various subsidiary companies (over thirty in number), but it still controls almost a similar number of concerns to-day which are actively engaged in the production of crude oil and natural gas. It also owns several of the largest refineries in the States, while its fleet of oil tankers will, when present building is completed, be considerably over 300,000 tonnage. Its capital is $100,000,000, and during the last twelve years it has paid in dividends over 400 per cent., in addition to an additional cash distribution of 40 per cent.

The Standard Oil Company of New York is another immense concern which, with a capital of $75,000,000, has its headquarters in the Standard’s palatial building at 26 Broadway, New York, and interested principally in the refining industry, its facilities permitting of 20,000 barrels of crude oil being treated daily. Another very prominent company is the Standard Oil Company of California, with its capital of $100,000,000. This Company not only produces its crude oil, but refines it, and engages in the export business. Its refinery at Point Richmond, California, is reported to be the largest in the world, for it can treat 65,000 barrels of crude oil daily. Its fleet of tankers and barges for the export trade is capable of carrying at one trip over 100,000 tons of products, and, for the purposes of its land transport, it possesses pipe-lines over 1,000 miles long.

The second place of importance in regard to the petroleum enterprises of international influence must be given to the “Shell” Transport and Trading Company, Ltd., whose headquarters are in London, with that well-known oil pioneer, Sir Marcus Samuel, Bart., as its Chairman. Formed just over twenty years ago for dealing primarily as a transporter of petroleum products in the Far East, the “Shell” has steadily and continuously extended the sphere of its operations, until the result of a carefully thought out policy is seen in its activities in almost every oil-field of the world. Just over ten years ago, the Company made an amalgamation with the Royal Dutch Petroleum Company, or, to give it its correct name, the Koninklijke Nederlandsche Maatschappij tot exploitatie van petroleum-bronnen in Nederlandsch Indie (whose capital is £12,500,000), and by reason of so doing it materially increased its international position and importance. The “Shell”—Royal Dutch Combine to-day has a controlling interest in some of the largest operating companies in Russia, Roumania, California, Mexico, Venezuela, and other oil regions, one of its most recent extensions being in its advent into the petroleum industry of Trinidad. The “Shell” Company has a record for successful industrial expansion which is achieved by few companies in the world of commerce: its capital is now £15,000,000, and in dividends it has distributed over 300 per cent. Among the “Shell” Company’s associated concerns, that of the Anglo-Saxon Petroleum Company, Ltd., which is responsible for the ocean transportation of the petroleum products of the Combine, takes first place, with its capital of £8,000,000; while the Asiatic Petroleum Company, Ltd. (capital, £2,000,000), ranks but second. The recent fusion of the interests of Lord Cowdray with those of the “Shell,” for the latter has acquired the control of the great Mexican interests associated with the Pearson company, is another instance of how the “Shell” Company has trod the road of progress and expansion.

The sudden rise to fame of the oil-fields of Mexico gave birth to what may safely be referred to as one of the most enterprising amalgamations of capital in the long list of concerns associated with the petroleum industry, and it is gratifying to note that this enterprise was solely due to the well-known firm of Messrs. S. Pearson & Sons. Lord Cowdray, as the head, was not slow to recognize the vast opportunities which awaited the development of the Mexican fields, and the formation of the Mexican Eagle Oil Company, in 1908, with a capital of now $60,000,000 (Mexican), or about £6,125,000 sterling, was the initial result of his efforts. It was just about this time that the serious fuel oil era opened, both in this country and others, and it was evident that, for the purpose of adequately distributing the products of Mexican oil (and these include the whole range of refined oils, as well as fuel oil), there was room for the operations of a large and influential company. The Anglo-Mexican Petroleum Company, Ltd., was accordingly formed, with Lord Cowdray’s son (the Hon. B. C. Pearson) as Chairman, and a capital of £2,000,000, to deal with the importation and distribution of Mexican petroleum products on the English market.

As already stated, the control of this Company has now passed under the “Shell,” and its future expansion is assured, both at home and abroad.

The Mexican products are transported from Mexico to this country, as well as many others, by the large fleet of Eagle oil tankers, the property of the Eagle Oil Transport Company, Ltd., which admirably managed concern of £3,000,000 capital is also presided over by the Hon. B. C. Pearson. The Eagle Company possesses the largest oil tankers afloat, many of them carrying over 15,000 tons of bulk oil, though others to be built are to be considerably larger; an 18,000 ton tanker is, indeed, already in commission.

Another highly important enterprise in the world of petroleum is that of the Burmah Oil Company, Ltd., which, as its name suggests, is occupied with the petroleum industry in Burmah, and catering for the almost unlimited needs of the Far East in regard to refined petroleum products. It controls enormous acres of oil-bearing territory held under lease from the Burmah Government, possesses extensive refineries at Rangoon, and has quite a fleet of oil tankers. Its capital is three and a half millions sterling, and its consistent success may be judged from the fact that it has paid over 400 per cent. in dividends. Of comparatively recent date, the Burmah Oil Company has turned its attention to other fields, particularly to Trinidad, but it is in connection with the development and subsequent operations of the fields of Burmah that the Company is chiefly concerned.

The Anglo-Persian Oil Company, Ltd., which is closely allied to the Burmah Oil Company (capital, £6,000,000) by reason of its large interest therein, has come into prominence during recent years, owing mainly to its agreement with the British Government, in which the latter has invested over £4,000,000 of the public moneys in the enterprise. The Company acquired its petroliferous concessions from several interests, including the Burmah Oil Company and the late Lord Strathcona, which had been granted to them by the Persian Government. When I mention that the Company’s concessions cover an area of, approximately, half a million square miles, and on which petroleum has been found in quantity on the majority of the small areas already examined, the significance of the enterprise will be somewhat appreciated. There is no doubt that the company’s success is doubly assured, and, from this point of view, the investment of the public moneys in the undertaking has been sound finance, especially when one considers the important part which petroleum products under British control must hereafter play. As a matter of fact, the proposition is a well-paying one to-day, and it is asserted that the Government’s interest is already worth no less than £20,000,000. Persia as an oil-producing country will occupy a very prominent place. The Company has immense petroleum-producing fields: it has its pipe-line to seaboard, and its refineries, situate on the Persian Gulf. It has possibilities without end, and it is rapidly availing itself of them. The Company also now owns the entire capital of three formerly German-owned concerns in London—the British Petroleum Company, Ltd., the Homelight Oil Company, Ltd., and the Petroleum Steamship Company, Ltd. Consequent upon these acquisitions, the Anglo-Persian Company, Ltd., is making arrangements to enter the English market as distributors of Persian petroleum. The question of transport need not here be considered, for the Anglo-Persian Oil Company owns the entire capital of the British Tanker Co., Ltd. The Company thus has the producing and refining possibilities: the acquired concern of the Tanker Company, together with that of the Petroleum Steamship Co., will suffice to bring its products to the English market, while the large distributing organizations of the British Petroleum Company and the Homelight Oil Company, owning depots all over the country, will offer easy facilities for the distribution of the petroleum products imported. My argument all along has been that the advent of the British Government into this enterprise—I will not call it a speculation, though at one time it looked like it—places all that private enterprise, which in the past has brought all the products of petroleum to our own doors at a reasonable and competitive price, at absolute discount. Ever since the petroleum industry assumed proportions of international magnitude, and we became more or less (I should have said more than less) dependent upon our necessities being met by petroleum and its products, private enterprise has always kept us well supplied. But the Anglo-Persian Oil Company has made immense headway since the Government took an interest in its operations, and its appearance on the English market as a refiner of Persian crude oil and a distributor of the products thereof, is but a reflection of the prolific nature of the vast fields in Persia which it possesses. It has decided upon having its first English oil refinery near Swansea, and it is reported that this will be in operation before the end of 1920. It has also secured the control of the Scottish shale oil refineries which will be used for the treatment of Persian crude oil when occasion warrants.

One might go on to interminable length in briefly referring to the great concerns whose operations have been responsible for the expansion of the world’s petroleum industry to its present magnitude, but the exigencies of space prevent this. The brief list of companies already referred to represents an amalgamation of capital to the extent of nearly £120,000,000 sterling, though this cannot be considered as representing more than one-half the total world’s investments in petroleum enterprises.

So far, I have not touched with the magnitude of the petroleum companies operating in the distributing oil trade of England, though, to some extent, this may be gathered from the references to such companies as the “Shell,” the Anglo-Mexican Petroleum Company, etc.

Practically the first company of any magnitude to distribute petroleum products in this country was the Anglo-American Oil Co., Ltd., which has actively engaged in this branch of commerce for the past thirty years. It imported and dealt in American oils long before the advent of the companies before mentioned, and, to-day, is certainly one of the largest—if not the largest—company so engaged. Its name is known in every hamlet in the country: its tank cars are seen on every railway, and its depots are to be found in every centre throughout the length and breadth of the land. Its name is legion. Its capital is £3,000,000, and it is to the Anglo-American Oil Company that, throughout the clatter of European War, the credit is due for having supplied us with those almost unlimited quantities of petroleum products so necessary both on sea and land, for it is the largest importer in the Kingdom. As its name implies, the “Anglo” deals mostly in American petroleum products: it was at one time the importing concern of the Standard Oil Company, but to-day it purchases broadcast in an endeavour—and a very successful one, too—to supply the British consumer with all the petroleum products he requires.

The present chapter deals, I feel, most inadequately with the general question of concerns whose interests are directly allied with that of petroleum; in fact, it was not my desire to give an encyclopaedia of the thousands of companies so engaged, but, rather, to suggest the names of a few which have secured world-wide distinction.