Seven Sisters (oil companies)

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"Seven Sisters" was a common term for the seven multinational oil companies of the "Consortium for Iran" oligopoly or cartel, which dominated the global petroleum industry from the mid-1940s to the mid-1970s. Alluding to the seven mythological Pleiades sisters fathered by the titan Atlas, the business usage was popularized in the 1950s by businessman Enrico Mattei, then-head of the Italian state oil company Eni. The industry group consisted of:

1. Anglo-Iranian Oil Company (now BP)
2. Gulf Oil (later part of Chevron)
3. Royal Dutch Shell
4. Standard Oil Company of California (SoCal, now Chevron)
5. Standard Oil Company of New Jersey (Esso, later Exxon, now part of ExxonMobil)
6. Standard Oil Company of New York (Socony, later Mobil, also now part of ExxonMobil)
7. Texaco (later merged into Chevron)

Preceding the 1973 oil crisis, the Seven Sisters controlled around 85 percent of the world's petroleum reserves. Since then, industry dominance has shifted to the OPEC cartel and state-owned oil and gas companies in emerging-market economies, such as Saudi Aramco, Gazprom (Russia), China National Petroleum Corporation, National Iranian Oil Company, PDVSA (Venezuela), Petrobras (Brazil), and Petronas (Malaysia). In 2007, the Financial Times called these "the new Seven Sisters".

According to consulting firm PFC Energy, by 2012 only 7% of the world's known oil reserves were in countries that allowed private international companies free rein. Fully 65% were in the hands of state-owned companies.

Video Seven Sisters (oil companies)

Composition and history

In 1951, Iran nationalized its oil industry previously controlled by the Anglo-Iranian Oil Company (now BP), and Iranian oil was subjected to an international embargo. In an effort to bring Iranian oil production back to international markets, the U.S. State Department suggested the creation of a consortium of major oil companies, several of which were daughter corporations of John D. Rockefeller's original Standard Oil monopoly. The "Consortium for Iran" was subsequently formed by the following companies:

1. Anglo-Iranian Oil Company (United Kingdom) - This company became British Petroleum. Following the takeover of Amoco (which in turn was formerly Standard Oil of Indiana) and Atlantic Richfield by British Petroleum, the name was shortened to BP in 2000.
2. Gulf Oil (United States) - In 1984, most of Gulf was acquired by SoCal and the enlarged SoCal entity became Chevron. The smaller parts of Gulf Oil were acquired by BP and Cumberland Farms. A network of service stations largely in the northeastern United States still bears the Gulf name.
3. Royal Dutch Shell (Netherlands/United Kingdom)
4. Standard Oil Co. of California (SoCal) (United States) - Became Chevron in 1984 when SoCal acquired Gulf Oil.
5. Standard Oil Co. of New Jersey (Esso) (United States) - Became Exxon, which renamed itself ExxonMobil following the acquisition of Mobil in 1999.
6. Standard Oil Co. of New York (Socony) (United States) - Became Mobil, which was acquired by Exxon in 1999 to form ExxonMobil.
7. Texaco (United States) - Acquired by Chevron in 2001.

The head of the Italian state oil company (Eni), Enrico Mattei, sought membership for his company, but was rejected by what he dubbed the "Seven Sisters", the American and British companies that largely controlled the Middle East's oil production after World War II. British writer Anthony Sampson took over the term when he wrote the book The Seven Sisters in 1975, to describe the oil cartel that tried its best to eliminate competitors and keep control of the world's oil resource. The term for the oil cartel was further popularized, along with a fictional logo, in Mad Max 2: The Road Warrior, a 1981 film about apocalyptic fuel shortages.

Being politically influential, vertically integrated, well organized, and able to negotiate cohesively as a cartel, the Seven Sisters were initially able to exert considerable power over Third World oil producers. However, in recent decades, the dominance of the Seven Sisters and their successor companies has been challenged by the following trends:

• the increasing influence of the OPEC cartel (formed in 1960 and expanded steadily through 1975),
• the declining share of world oil and gas reserves held by OECD countries, and
• the emergence of powerful state-owned oil companies in emerging-market economies.

As of 2017, the surviving companies from the Seven Sisters are BP, Chevron, ExxonMobil and Royal Dutch Shell, which form four members of the "supermajors" group.

Maps Seven Sisters (oil companies)

See also

• Fossil fuel
• List of oil exploration and production companies
• Monopoly

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References

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Further reading

• Ammann, Daniel. The King of Oil: The Secret Lives of Marc Rich. New York: St. Martin's Press, 2009, ISBN 0-312-57074-0
• Perrone, Nico. Enrico Mattei. Bologna: il Mulino, 2001, ISBN 88-15-07913-0
• Perrone, Nico. Obiettivo Mattei: Petrolio, Stati Uniti e politica dell'ENI (Target Mattei: Oil, United States and ENI Policy). Rome: Gamberetti, 1995, ISBN 88-7990-010-2
• Yergin, Daniel. The Prize: The Epic Quest for Oil, Money and Power. New York: Simon & Schuster, 1991, ISBN 0-671-50248-4

src: www.foodandwaterwatch.org

Documentaries

• The Secret of the Seven Sisters. Al Jazeera English, 26 April 2013

Source of article : Wikipedia