[Aramco / Bapco] Standard Oil Company of California Annual Report 1946 Follis, R.G.; H.D. Collier; Standard Oil Company of California (SOCAL)

With much on Aramco's progress in the immediate aftermath of WW2, "this annual report is the first in five years not to have war conditions as a background dominating all activities and drawing a curtain over the future" (p12). Colour illustrated wraps 21x28cm. 19, (2)pp. Wraps good, marked to the front, interiors very good. The Standard Oil Company of California (SOCAL) was formed out of Standard Oil's break up in 1911. This presents its results for 1946 including its subsidiaries, affiliates and associates, with much on developments in the Arabian Peninsula. In addition to its domestic interests, SOCAL and Texas Company each owned 50% of the Arabian American Oil Company (Aramco), Trans-Arabian Pipeline Company (Tapline), Bahrain Petroleum Company (BAPCO), and Caltex marketing. Its associates in the Netherlands East Indies were exploring for oil. It wholly owned subsidiaries in Venezuela, Columbia, and Canada. In their shareholder statement dated 18 March 1947 President R.G. Follis and Chair H.D. Collier note the increased global demand for oil was reflected in major production increases in Saudi and Bahrain. They describe the complexities and progress to date in bringing new Aramco shareholders on board. The process began in the previous year, and involved circumventing the terms of the Red Line Agreement, which prohibited shareholders in the Turkish Petroleum Company from independently seeking oil interests in former Ottoman territories. The matter would eventually be resolved in 1948 when Standard Oil of New Jersey acquired 30% of Aramco and Socony Vacuum 10%, leaving SOCAL and Texas Company with 30% each. They also report on raising loans of $102M for Aramco, and $125M to build Tapline, both guaranteed by the new shareholders as part of an interim arrangement, keeping "all interested departments" of the US Government in the loop regarding the negotiations, the expansion in markets the new shareholders will bring, Aramco production at Dammam, Abqaiq and Qatif, and operations at Ras Tanura refinery with a photo of an Arab employee at work (pp3, 7-9). They flag encouraging exploratory activities in Venezuela and elsewhere. Other content includes the Board of Directors; summary results (including breakdown of interests in domestic and foreign holdings) and operations during 1942-46; production, sales, and expenditures charts; maps of US and global interests distinguishing production, exploration, refineries and sales; and the accounts with notes and discussion. The accounts show a surge in domestic sales from $190M in 1941 to $354M in 1946, with increased demand from normal peacetime activities more than offsetting the drop in Government wartime demand. SOCAL's total foreign investment of $99M at end-1946 included $40M in Saudi and Bahrain, $40M in South America, $8M in Canada, and $7M in the Netherlands East Indies, yielding net profits of $6.4M (pp18-19).