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

In Chapter 20, the focus shifts to the strategic significance of Middle Eastern oil during and after World War II. The chapter introduces Everette Lee DeGolyer, a renowned American geologist and oil industry pioneer who was tasked with evaluating the oil potential of Saudi Arabia and other Persian Gulf countries. DeGolyer’s career was marked by significant contributions such as the development of the seismograph for oil exploration and culminated in his 1943 mission to the Middle East. His arduous trip confirmed the existence of vast oil reserves in the region, fundamentally altering perceptions of global oil supply. He reported that the proven and probable reserves in the Gulf region amounted to about 25 billion barrels, with Saudi Arabia holding approximately 5 billion barrels. This discovery indicated a monumental shift in the global oil industry, moving the center of gravity from the Gulf-Caribbean area to the Persian Gulf. This shift predicted the end of America’s dominance as the world’s leading oil supplier, a position it held during World War II when it provided nearly 90 percent of the Allies’ oil.

The strategic importance of Middle Eastern oil became evident as the United States, fearing its domestic oil reserves would be insufficient for future demands, adopted the “conservation theory.