Oil: including the Special Cases of Peru and Venezuela
As of December 1967, 52 percent of Standard Oil of New Jersey's assets were abroad. It was the world's biggest private overseas investor, with operations in over 100 nations. Its assets of $13.8...
...who are the des- other things taught them how cendants of the Inca empire,: to use napalm to combat insur- impress them with the magic gency...
...They did it with know- the spot, beheaded and buried: how and gasoline from IPC and in secret places in the moun-l with fuses they removed from tains...
...In 1963, the Argentina government annulled a contract with the company...
...Refineria Concham-Chevron, S.A...
...It is likely that the delaying tactic was taken in order to give Rockefeller a chance to complete his survey mission for Nixon...
...The data on subsidiaries is from Moody's Industrial Manual, 1968...
...About $200 million of IPC assets were confiscated and the debt which the Peruvians claim is owed to them by IPC has escalated from $700 million to over a billion dollars...
...Concurrent with these developments, the oil companies have come to rely increasingly on the Middle East and Africa as the major sources of their profits...
...they were captured, half The Peruvian answer was to...
...Furthermore, the Chase Manhattan Bank - another Rockefeller interest - was given until January 2, 1970 to relinquish control of the Banco Continental of Peru (the country's fourth largest commercial bank...
...The Peruvian junta, in its more militant moments, has talked of other nationalizations...
...The New York Times speculated that Irwin had had more success in influencing the decision to delay sanctions than in winning over the Peruvian junta to the State Department point of view...
...According to John Goshko of The Washington Post (January 29, 1967), the layoff would have been even greater were it not for labor contracts the company had signed...
...It had a tanker fleet of 126 ships and operated 65,000 service stations...
...Venezuela once accounted for over half of Standard Oil of New Jersey's profits...
...Source: Time, December 29, 1967.-10STATISTICS ON FOUR ROCKEFELLER-CONTROLLED OIL COMPANIES - 1967 Rank Company HQ's Sales Assets Employees 2 Standard Oil N.J...
...Though ing oil drums out the hacl of LIMA, Peru-An interesting used widely in World War II, it low-flying planes was mole footnote to the historic Peruvi- first gained highly unfavorable dangerous to the pushers than an-American confrontation over...
...Colombianos Distribuidores de Combustibles, S.A...
...Refineria Petrolera de Guatemala-California, Inc...
...100%): Under the Esso brand name, coordinates Jersey Standard Oil's exploring, producing, transporting, refining and marketing in Argentina, Brazil, the Caribbean, Central America, Chile, Colombia, Ecuador, Paraguay, Peru and Uruguay...
...accounted for a little over 37 percent of all Venezuelan oil-in 1965...
...The percent of ownership by the parent company is indicated in parenthesis following the subsidiary's name...
...STANDARD OIL (California)...11.9% Rockefeller holdings Under the Chevron brand name, coordinates exploring, producing, transportation, refining and marketing of.oil, gas and petrochemicals in Brazil, the Canal Zone, Central America, Colombia (Zulia field), Peru, Puerto Rico and Venezuela (owns Bajo Grande refinery on Lake Maracaibo...
...investors...
...International Petroleum Company, Ltd...
...Footnotes 1 In a period of ten years, the Rockefeller's Creole Petroleum Corporation (see below), through the introduction of automation and computerization, nearly halved its employment - from a total of 9,000 in 1957 to 5,000 in 1967 - while actually increasing its production...
...de Capital Variable (100Z): Mexico...
...Most of the data for this article came from the following sources: "Venezuela," International Economic Survey, April 1969, Chemical Bank/International Division, New York, New York...
...Refining subsidiaries in Jamaica, Nicaragua, El Salvadon, Argentina and formerly in Peru.-11MOBIL OIL CORPORATION...16.3% Rockefeller holdings Under Mobil and Socony brand names, coordinates exploring, producing, transporting, refining and marketing oil, gas and petrochemicals in Argentina, Barbados, Brazil, Chile, Colombia, Ecuador, Guatemala, Mexico, Peru, Uruguay and Venezuela...
...Venezuela has the highest per capita income in Latin America, but this is undercut by one of the hemisphere's highest costof-living indexes and by an immensely distorted distribution of income...
...Two Rockefeller-controlled oil companies (in addition to the IPC) operate subsidiaries in Peru...
...was not so much to kill gueril- Peru first asked the U. S. gov- las with the naplam as to create ernment to supply the napalm "balls of fire" which would but Washington turned down come careening down the moun- the request...
...The same thing is likely to happen in Venezuela where International Petroleum Company and Olin Mathieson (another company with substantial Rockefeller influence) are already into petrochemicals...
...simply a mixture of gasoline The observers also say-half and soap, which continues to jokingly, half seriously--that burn for a long time when the primitive process of push-l Source: New York Post, April 7, 1969 J. McGhee/Viet Report THE SPECIAL CASE OF VENEZUELA The fact that oil is the key to Venezuela is almost cliche...
...These calculations of the percentages of Rockefeller family holdings are included below for each parent company...
...The Mobil Oil Corporation has three wholly-owned subsidiaries involved in title holding and petroleum exploration and marketing...
...Furthermore, in 1959, in an effort to gain more control over the country's vital resource, the government initiated a policy of granting no further oil exploration and development concessions...
...The most recent systematic reckoning of the family's holdings uses data gathered by the Temporary National Economic Committee (see Victor Perlo, The Empire of High Finance, International Publishers, New York, 1957, Appendix 1...
...Tierras e Inversiones Venezuela, C.A...
...Palmas Air Force Base near Most of them were killed on...
...With the expansion of the Latin American Common Market, such ventures will become increasingly attractive to U.S...
...2 (Nelson Rockefeller's business career in Latin America began when he was named a director of Creole in the 1930's...
...The appointment of John Irwin II as special presidential ambassador to Peru is a case in point...
...starved to death, after having prepare their own napalm, been surrounded by several which they made at the Las thousand government troops...
...99.9%): Producing, transporting, refining and marketing in Colombia and Peru...
...Oil requires a high concentration of capital and technology, and it is precisely this concentration that has produced severe imbalances in the Venezuelan economy...
...Pan American Venezuela Oil Company (100%): Exploring and producing in Lake Maracaibo area...
...The Rockefeller Foundation made grants totaling over $317,000 to Peru in 1967...
...From The New York Times' obituary page, November 28, 1967.-13Seized U.S...
...government's gold supply...
...tion that napalm was used, but According to close observers it has always been officially de- of the situation at the time, the nied because of the sensitivity Peruvian military's intention of the subject...
...The Middle East and Africa offer lower production costs, more plentiful reserves, and lower fulfur content in the oil...
...The list omits finance and shipping subsidiaries located in the Bahamas, Bermuda and Panama which are headquartered there primarily for tax and licensing advantages...
...Prado worked for the Chase National Bank and the Banco Popular in Lima, Peru...
...celehre for war protestors as a The International Petroleum national Petroleum Co...
...50%): Puerto Rico...
...1 The imbalances created by this skewed economy are graphically reflected in the acute contrasts in living standards between the wealthy and the poor of Caracas and between rural and urban areas...
...When Standard Oil extractive operations were nationalized in Mexico, the company turned to the petrochemical industry where it is now firmly entrenched...
...Creole Petroleum Company, a subsidiary of Standard Oil (N.J...
...Esso Inter-Americana, Inc...
...Irwin, whose impeccable credentials include a wife whose brother, Arthur K. Watson, is a board chairman of IBM, was a fitting choice as an advance-man for Rockefeller...
...Colombian Petroleum Company (49.94%): Colombia...
...guerrilla territory, which in- Chicago D,,i;y Ne.s...
...Agreement reached with the new government in 1966 provided that the state-owned oil agency would reimburse the company for all crude oil delivered but not paid for since inception of the contract ($61 million) less deduction ($15 million) to compensate the state-owned agency for wells drilled...
...99.6%): Operates pipeline in Colombia...
...In addition, the Chase Manhattan Bank has arranged several sizeable loans for the Peruvian government over the years...
...operates one refinery in Netherlands, West Indies, and two in Colombia...
...Cerro has been conducting merger discussions - now delayed by the Peruvian situation - with another Rockefeller oil company, Standard Oil of Indiana...
...The crisis itself - the nationalization of the International Petroleum Company, a Standard Oil (New Jersey) subsidiary - directly affects Rockefeller interests...
...over 80%): Colombia...
...Pan American Colombia Oil Company (100%): Owns 25 percent interest in exploration and production in three Colombian oil fields...
...Eventually, ours...
...These trends in the country's oil sector could mean the eventual decline of Rockefeller 'influence in Venezuela...
...In addition, the high degree of technology required by the industry aggravates the country's unemployment problem...
...AN EXAMPLE OF THE ROCKEFELLERS' CONTACTS IN PERU "A memorial mass will be offered today for Manuel'I...
...New York City $13.3 billion $15.2 billion 150,000 6 Mobil Oil New York City 5.8 billion 6.2 billion 79,800 12 Standard Oil Calif...
...The Nixon policy toward Latin America seems to be, at best, unsolidified, and it is probable that Nixon will depend heavily on Rockefeller's experience and influence in Latin America to formulate that policy...
...Venezuela is the world's largest exporter and third largest producer of oil (behind the United States and the U.S.S.R...
...producing interests in Venezuela (25% interest in Mene Grande...
...it then established the above-mentioned Venezuelan Petroleum Corporation to negotiate "service contracts" for future development as the companies' present contracts expire...
...Peruvian military...
...99.7%): Imports lubricating oil, additive components...
...companies for joint ventures in this field and several companies have already-15begun operating on that basis...
...Oil companies have been extracting at such a fantastic rate from Venezuela that, if maintained, the known reserves are expected to be depleted in about 14 years...
...Formed in 1961 to purchase and hold government securities such as mortgage bonds issued to stimulate urban housing construction, bonds issued to finance public works, etc...
...Standard Oil of California has a 99 percent interest in the Compania de Petr6leo Chevron S.A., which markets lubricants in Peru, and a 50 percent interest in Refinerfa Concham-Chevron S.A., which has a refinery at Concham Beach, Peru, producing 12,000 barrels of oil daily...
...Only a handful of In-' old Italian bombs they had on dians who collaborated with hand...
...This is obviously not very appealing to the companies and, as of February 1969, no service contracts had been signed...
...Qufmica Oronite S.A...
...Through a wholly-owned subsidiary, Chase also operates an investment company in Peru...
...Oil Firm Made Napalm By GEORGIE ANNE GEYER I dropped on its victims...
...That fact, along with other factors, is forcing the oil industry to undergo a change...
...is the result of being used in Vietnam...
...San Francisco 3.3 billion 5.3 billion 47,771 17 Standard Oil Ind...
...The other 75 percent of Mene Grande is owned by the Mellon family's Gulf Oil Corporation...
...The $2 billion in foreign exchange annually give Venezuela a high import capacity, which in return tends to stifle the development of local industry...
...Bahama California Oil Company (100%): Exploring oil lands in marine areas under license by Jamaica...
...the nationalization of the Inter...
...the Rockefellers are sure to be among them...
...In addition, the Rockefeller-controlled oil companies own refining, shipping and marketing facilities in Venezuela and the Caribbean which process a large share of the 45 percent of Venezuelan oil exported to the United States...
...It is the major component of foreign exchange earnings which amount to over $2 billion annually...
...A LIST OF SUBSIDIARIES AND JOINT VENTURES OF FOUR ROCKEFELLER-CONTROLLED OIL COMPANIES AND THEIR OPERATIONS IN LATIN AMERICA The following list includes data on the Latin American operations of four major oil companies, all descendants of the original Standard Oil Trust assembled by John D. Rockefeller, Sr., which are generally acknowledged to be controlled by the Rockefeller family and their allied families...
...sugar quota), a chain of American-style supermarkets, a major poultry breeding operation and an insurance brokerage business...
...The Venezuelan government, on its part, is promoting a policy of diversification, hoping to solve some of the problems inherent in its unbalanced economy...
...Oil accounts for about 86 percent of total foreign investment, 93 percent of the country's export earnings, 26 percent of the gross domestic product, and 63 percent of the government's revenue...
...Rockefeller family interests dominate the oil industry of Venezuela just as oil dominates the economy...
...Imperial Gas Company of Puerto Rico, Inc...
...Prado, who was a son and grandson of former presidents of Peru, died November 9 in Rio de Janeiro....During World War II, he was assistant to Nelson A. Rockefeller who was then Coordinator of Latin American Affairs in the State Department...
...Through the petrochemical industry, which is becoming increasingly important...
...Under brand name Ortho, markets agricultural chemicals in Mexico and Central America...
...There are several ways, however, that the family can maintain and tighten its grip on the country's economy...
...Venezuela: Business Problems and Opportunities, Business International Corporation, New York, March 1968...
...ican military colleagues that the - would frighten the supersti- U. S. trained them and among tious Indians...
...60%): Owns refinery in Guatemala...
...Companfa de Petroleo Lago (100%): Shipping...
...Lima...
...It sold one out of every seven gallons of fuel marketed in the "free world...
...No exact accounting of the Rockefeller family's current holdings in these companies has been made public...
...Formed in 1961 to invest in local light industry and agriculture...
...the Cerro Corporation, which has vast mining operations in Peru, has been mentioned in that context...
...The Venezuelan government is making offers to U.S...
...In other arenas, the Rockefeller-controlled International Basic Economy Corporation (IBEC) runs a sugar mill in northern Peru (which would be affected by a cut in the U.S...
...the guerrillas were brought to At its simplest, napalm is trial and sentenced...
...Still another Rockefeller-controlled company, Mobil Oil, produces an additional 4.2 percent...
...Trust Com- pany of New York (a Rockefeller-controlled bank) and chairman of the board of directors of Union Theological Seminary which depends heavily on Rockefeller endowments...
...marketing in Ecuador...
...2 The other major producer in Venezuela (28 percent) is Shell, which brought in the country's first big producing well in 1914...
...a subsidiary of Standard fact that IPC helped the Peru...
...The Washington Post, January 29, 1967...
...Chicago 2.9 billion -4.1 billion 45,375 Source: The Fortune Directory of 500 Largest Industrial Corporations (ranked by sales), June 15, 1968...
...you are using it all the time in I Actually, these observers Vietnam," a Latin officer is say, the naplam was used very quoted as saying at the time...
...Prado....Mr...
...Though computed in 1956, it is doubtful that these figures have changed significantly...
...Oleoducto de Zulia, S.A...
...In 1966, Standard Oil of New Jersey alone made over a quarter billion dollars in profits from its Venezuelan operations...
...Among them are: 1) Through IBEC (see description below), which controls most of the country's retail food-marketing and is trying to diversify into other areas...
...Companfa Inmobiliaria Samaria (100%): Peru...
...Before that, Mr...
...Western Europe and Japan account for an additional 24 percent, Latin America, 22 percent, and Canada, 9 percent...
...Just two days before the United States government was to enforce the sanctions of the Hickenlooper Amendment (cutting off aid and the preferential sugar quota), an announcement was made by Secretary of State Rogers that the action would be deferred...
...Initial capital of $10 million, of which $7 million has been invested in 18 enterprises...
...owns 40 percent of Aditivos Mexicanos, S.A...
...STANDARD OIL (Indiana)...11.4% Rockefeller holdings Pan American Argentina Oil Company (100%): Exploring and producing...
...i power of the government, and "Then when we need it, you I discourage them from collabolr- refuse to give it to us, although ating Iith the guerrillas...
...2) Through the various investment companies set up by Creole and Lago which finance many other businesses in Venezuela and retain 49 percent control of each venture they finance...
...He is also the legal counsel for the Rockefeller Foundation...
...tainsides...
...Takes over 49 percent of the businesses it finances...
...notoriety and became a cause to the targets...
...The oil industry employs a very small portion of the labor force (1.1 percent) while unemployment figures vary from 12 to 20 percent...
...STANDARD OIL (New Jersey)...13.5% Rockefeller holdings Creole Petroleum Corporation (95%): Producing, refining, transportation and marketing in Venezuela...
...Pan American Trinidad Oil Company (100%): Exploring and producing in offshore concessions in Trinidad...
...Total investments of over $19 million...
...Lago Investment Company...
...men were Psychological Warefare furious, pointing out their Amer...
...9. guerrillas...
...Its assets of $13.8 billion were greater than the U.S...
...50%): Owns refinery at Concham Beach, Peru...
...now it accounts for less than one-third...
...They judge that none of "Do you think your soldiers' it actualy kiled any of the !)0 lives are more valuable than or so guerrillas...
...The Jersey Standard and Mobil production stands in sharp contrast to the production of the government-controlled oil agency, Corporaci6n Venezolana de Petr5leo (CVP), which accounts for less than 1 percent of total production...
...The Peruvians prepared the Oil of New Jersey, was nationvian government make napalm naplam in 55-gallon oil drums alized hy the military junta Iin 1965 to defeat its Communist and dropped it from planes over last Oct...
...In 1958, contracted to develop oil production on Comodor Rivadavia area...
...Creole Investment Corporation...
...little...
...Caribbean Bitumuls, Ltd...
...South American Gulf Oil Company (50%).PERU The forthcoming Rockefeller expedition to Latin America has particular importance for the situation in Peru...
...Desarrollos y Negocios, S.A...
...It has long been known priva- eluded some of the wildest tely by those close to the situa- mountain country in the Andes...
...Two-thirds of the profitable refining operations of Venezuela's oil take place outside her boundaries...
...These, the reasoning went...
...He is a partner in a Rockefeller-associated law firm, a director of the U.S...
...Another Jersey Standard subsidiary, the International Petroleum Company (which was recently ousted from Peru), owns a 25 percent interest in the Mene Grande Oil Company, which produces another 12 percent of the country's output...
...50%): Owns Bitumuls plant in Jamaica...
Vol. 3 • April 1969 • No. 2
