| | Bill Dwyer wrote:
We're not stealing anything. They don't own that oil, just because it happens to exist in their geographical region of the world. They didn't produce it; the American, British and French petroleum companies produced it, and it is they who have a right to it. I can appreciate the sentiment, but don't totally agree. I'll explain why in connection with Saudi Arabia, about which I'm most familiar. By the way Tracinski's list of countries omitted the Dutch (Shell Oil). Also, American oil companies had all or nearly all the oil/gas concessions in Saudi Arabia, and they had minimal concessions elsewhere in the region.
Tracinski's claims that the western oil companies were taxed "after the fact", and that the Saudi oil fields were nationalized in 1950, are very misleading. An American oil company signed a concession (a contract of sorts) with the head of the Saudi government in 1933 to seach for and drill for oil. The company paid upfront money, with contractual promises of more if a discovery were made, and contractual promises of more for the amount of oil extracted. The concession was for 60 years, i.e. until 1993.
Later on the Saudi government, given the magnitude of the discoveries and greed, demanded revising the concession agreement. Given a sovereign government versus a foreign private company with no assistance from the US government, it is not suprising who had the leverage. The concession was revised more than once -- partly due to more American oil companies entering the deal -- and eventually the Saudi goverment took full control in 1988. (The agreement signed in 1980 wasn't fully implemented until 1988. Also, the American companies continue dealing with Saudi Aramco to this day as customers). A brief history is here: http://en.wikipedia.org/wiki/Aramco
Let's consider. In 1993 the Saudi government could have terminated their relationship with the American oil companies totally under the terms of the concession. Suppose that happened hypothetically. Of course, the American companies would have a good argument that they should be entitled to more money because they signed revisions to the original concession under duress. But would they be morally entitled to take over the oil fields entirely?
Allow me an analogy. Suppose Bill Dwyer (or the reader) owned land and made a 10-year agreement with an oil company to explore for and extract oil on his land. The amount of oil is beyond expectation, or the price of oil rises sharply, and after nearly 10 years Bill Dwyer (or the reader) thinks he can get a far more favorable deal with a different oil company. However, after 10 years the present oil company says, "No, you can't do that. It's not your oil. We found it and did all the work." If the oil comany refused to leave and continued to extract oil, would it "not be stealing anything"?
Also, who is the "we" in "We're not stealing anything."? It sounds rather collectivist to me. :-) Is it the U.S. government or other Americans who had nothing to do with the oil commpanies who found and extracted the oil? Yet they wouldn't be "stealing anything"?
If this sounds antagonistic, that is not my intent. I believe there is an interesting issue of property rights here. And, of course, if we did go to war with Saudi Arabia, then arguably it wouldn't be "stealing", but "to the victor goes the spoils" or "all is fair in love and war".
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