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...
...Before that, Mr...
...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...
...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...
...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...
...The Middle East and Africa offer lower production costs, more plentiful reserves, and lower fulfur content in the oil...
...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...
...Only a handful of In-' old Italian bombs they had on dians who collaborated with hand...
...Pan American Venezuela Oil Company (100%): Exploring and producing in Lake Maracaibo area...
...Caribbean Bitumuls, Ltd...
...The Peruvian junta, in its more militant moments, has talked of other nationalizations...
...Rockefeller family interests dominate the oil industry of Venezuela just as oil dominates the economy...
...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...
...Esso Inter-Americana, Inc...
...These, the reasoning went...
...guerrilla territory, which in- Chicago D,,i;y Ne.s...
...The percent of ownership by the parent company is indicated in parenthesis following the subsidiary's name...
...2 The other major producer in Venezuela (28 percent) is Shell, which brought in the country's first big producing well in 1914...
...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...
...Eventually, ours...
...Peruvian military...
...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...
...These calculations of the percentages of Rockefeller family holdings are included below for each parent company...
...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...
...Palmas Air Force Base near Most of them were killed on...
...In addition, the high degree of technology required by the industry aggravates the country's unemployment problem...
...It is the major component of foreign exchange earnings which amount to over $2 billion annually...
...little...
...Through the petrochemical industry, which is becoming increasingly important...
...they were captured, half The Peruvian answer was to...
...Venezuela: Business Problems and Opportunities, Business International Corporation, New York, March 1968...
...Companfa de Petroleo Lago (100%): Shipping...
...In 1963, the Argentina government annulled a contract with the company...
...Still another Rockefeller-controlled company, Mobil Oil, produces an additional 4.2 percent...
...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...
...is the result of being used in Vietnam...
...Desarrollos y Negocios, S.A...
...Lima...
...Though computed in 1956, it is doubtful that these figures have changed significantly...
...The oil industry employs a very small portion of the labor force (1.1 percent) while unemployment figures vary from 12 to 20 percent...
...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...
...There are several ways, however, that the family can maintain and tighten its grip on the country's economy...
...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...
...That fact, along with other factors, is forcing the oil industry to undergo a change...
...It sold one out of every seven gallons of fuel marketed in the "free world...
...producing interests in Venezuela (25% interest in Mene Grande...
...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...
...Creole Investment Corporation...
...99.7%): Imports lubricating oil, additive components...
...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...
...99.6%): Operates pipeline in Colombia...
...Oil requires a high concentration of capital and technology, and it is precisely this concentration that has produced severe imbalances in the Venezuelan economy...
...99.9%): Producing, transporting, refining and marketing in Colombia and Peru...
...over 80%): Colombia...
...It had a tanker fleet of 126 ships and operated 65,000 service stations...
...The Mobil Oil Corporation has three wholly-owned subsidiaries involved in title holding and petroleum exploration and marketing...
...Pan American Trinidad Oil Company (100%): Exploring and producing in offshore concessions in Trinidad...
...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...
...celehre for war protestors as a The International Petroleum national Petroleum Co...
...The $2 billion in foreign exchange annually give Venezuela a high import capacity, which in return tends to stifle the development of local industry...
...Colombian Petroleum Company (49.94%): Colombia...
...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...
...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...
...South American Gulf Oil Company (50%).PERU The forthcoming Rockefeller expedition to Latin America has particular importance for the situation in Peru...
...The Venezuelan government, on its part, is promoting a policy of diversification, hoping to solve some of the problems inherent in its unbalanced economy...
...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...
...Prado worked for the Chase National Bank and the Banco Popular in Lima, Peru...
...the Rockefellers are sure to be among them...
...50%): Owns refinery at Concham Beach, Peru...
...The crisis itself - the nationalization of the International Petroleum Company, a Standard Oil (New Jersey) subsidiary - directly affects Rockefeller interests...
...Under brand name Ortho, markets agricultural chemicals in Mexico and Central America...
...Qufmica Oronite S.A...
...owns 40 percent of Aditivos Mexicanos, S.A...
...International Petroleum Company, Ltd...
...Venezuela once accounted for over half of Standard Oil of New Jersey's profits...
...In 1958, contracted to develop oil production on Comodor Rivadavia area...
...When Standard Oil extractive operations were nationalized in Mexico, the company turned to the petrochemical industry where it is now firmly entrenched...
...Refineria Petrolera de Guatemala-California, Inc...
...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...
...Cerro has been conducting merger discussions - now delayed by the Peruvian situation - with another Rockefeller oil company, Standard Oil of Indiana...
...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...
...He is a partner in a Rockefeller-associated law firm, a director of the U.S...
...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...
...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...
...Imperial Gas Company of Puerto Rico, Inc...
...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...
...This is obviously not very appealing to the companies and, as of February 1969, no service contracts had been signed...
...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 Rockefeller Foundation made grants totaling over $317,000 to Peru in 1967...
...the Cerro Corporation, which has vast mining operations in Peru, has been mentioned in that context...
...Total investments of over $19 million...
...now it accounts for less than one-third...
...The Washington Post, January 29, 1967...
...operates one refinery in Netherlands, West Indies, and two in Colombia...
...The other 75 percent of Mene Grande is owned by the Mellon family's Gulf Oil Corporation...
...Through a wholly-owned subsidiary, Chase also operates an investment company in Peru...
...STANDARD OIL (Indiana)...11.4% Rockefeller holdings Pan American Argentina Oil Company (100%): Exploring and producing...
...Venezuela is the world's largest exporter and third largest producer of oil (behind the United States and the U.S.S.R...
...Oil Firm Made Napalm By GEORGIE ANNE GEYER I dropped on its victims...
...marketing in Ecuador...
...These trends in the country's oil sector could mean the eventual decline of Rockefeller 'influence in Venezuela...
...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...
...Oleoducto de Zulia, 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...
...Pan American Colombia Oil Company (100%): Owns 25 percent interest in exploration and production in three Colombian oil fields...
...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...
...de Capital Variable (100Z): Mexico...
...Western Europe and Japan account for an additional 24 percent, Latin America, 22 percent, and Canada, 9 percent...
...tainsides...
...Two Rockefeller-controlled oil companies (in addition to the IPC) operate subsidiaries in Peru...
...9. guerrillas...
...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...
...it then established the above-mentioned Venezuelan Petroleum Corporation to negotiate "service contracts" for future development as the companies' present contracts expire...
...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...
...In addition, the Chase Manhattan Bank has arranged several sizeable loans for the Peruvian government over the years...
...a subsidiary of Standard fact that IPC helped the Peru...
...starved to death, after having prepare their own napalm, been surrounded by several which they made at the Las thousand government troops...
...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...
...60%): Owns refinery in Guatemala...
...Formed in 1961 to invest in local light industry and agriculture...
...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 nationalization of the Inter...
...men were Psychological Warefare furious, pointing out their Amer...
...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...
...He is also the legal counsel for the Rockefeller Foundation...
...50%): Puerto Rico...
...companies for joint ventures in this field and several companies have already-15begun operating on that basis...
...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...
...Its assets of $13.8 billion were greater than the U.S...
...STANDARD OIL (New Jersey)...13.5% Rockefeller holdings Creole Petroleum Corporation (95%): Producing, refining, transportation and marketing in Venezuela...
...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...
...Prado....Mr...
...2 (Nelson Rockefeller's business career in Latin America began when he was named a director of Creole in the 1930's...
...The data on subsidiaries is from Moody's Industrial Manual, 1968...
...Tierras e Inversiones Venezuela, C.A...
...From The New York Times' obituary page, November 28, 1967.-13Seized U.S...
...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...
...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...
...Two-thirds of the profitable refining operations of Venezuela's oil take place outside her boundaries...
...The Venezuelan government is making offers to U.S...
...With the expansion of the Latin American Common Market, such ventures will become increasingly attractive to U.S...
...government's gold supply...
...50%): Owns Bitumuls plant in Jamaica...
...notoriety and became a cause to the targets...
...The appointment of John Irwin II as special presidential ambassador to Peru is a case in point...
...The list omits finance and shipping subsidiaries located in the Bahamas, Bermuda and Panama which are headquartered there primarily for tax and licensing advantages...
...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 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...
...Bahama California Oil Company (100%): Exploring oil lands in marine areas under license by Jamaica...
...accounted for a little over 37 percent of all Venezuelan oil-in 1965...
...Colombianos Distribuidores de Combustibles, S.A...
...In 1966, Standard Oil of New Jersey alone made over a quarter billion dollars in profits from its Venezuelan operations...
...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...
...sugar quota), a chain of American-style supermarkets, a major poultry breeding operation and an insurance brokerage business...
...Lago Investment Company...
...the guerrillas were brought to At its simplest, napalm is trial and sentenced...
...Refineria Concham-Chevron, S.A...
...Takes over 49 percent of the businesses it finances...
...Initial capital of $10 million, of which $7 million has been invested in 18 enterprises...
...It is likely that the delaying tactic was taken in order to give Rockefeller a chance to complete his survey mission for Nixon...
...investors...
...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...
...AN EXAMPLE OF THE ROCKEFELLERS' CONTACTS IN PERU "A memorial mass will be offered today for Manuel'I...
...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...
...Chicago 2.9 billion -4.1 billion 45,375 Source: The Fortune Directory of 500 Largest Industrial Corporations (ranked by sales), June 15, 1968...
...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...
...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...
...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...
...Companfa Inmobiliaria Samaria (100%): Peru...
...ican military colleagues that the - would frighten the supersti- U. S. trained them and among tious Indians...
...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...
...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...
...No exact accounting of the Rockefeller family's current holdings in these companies has been made public...
...San Francisco 3.3 billion 5.3 billion 47,771 17 Standard Oil Ind...
...Creole Petroleum Company, a subsidiary of Standard Oil (N.J...
Vol. 3 • April 1969 • No. 2
