Seven Sisters (oil companies)
Encyclopedia
The "Seven Sisters" was a term coined in the 1950s by businessman Enrico Mattei
, then-head of the Italian
state oil company Eni
, to describe the seven oil companies which formed the "Consortium for Iran" and dominated the global petroleum industry
from the mid-1940s to the 1970s. The group comprised Standard Oil of New Jersey and Standard Oil Company of New York (now ExxonMobil
); Standard Oil of California (now Chevron
), Gulf Oil
(acquired by Chevron
in 1985) and Texaco
; Royal Dutch Shell
; and Anglo-Persian Oil Company
(now BP
).
In 1973 the members of the Seven Sisters controlled 85% of the world's petroleum
reserves but in recent decades the dominance of the companies and their successor companies has been reduced by the increasing influence of the OPEC
cartel
and state-owned oil companies in emerging-market economies.
nationalised its oil industry, then 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. The "Consortium for Iran" was subsequently formed by the following companies:
The head of the Italian state oil company, Enrico Mattei
sought membership for the Italian oil company AGIP
, but was rejected by what he dubbed the "Seven Sisters" to describe the Anglo-Saxon
companies that 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 shadowy oil cartel
, which tried to eliminate competitors and control the world’s oil resource.
Being well-organized and able to negotiate as a cartel
, the Seven Sisters were initially able to exert considerable power over Third World
oil producers. In recent decades the dominance of the Seven Sisters and their successor companies has been challenged by the increasing influence of the OPEC
cartel
(formed in 1960), OECD countries' share of world oil production declining, and the emergence of powerful state-owned oil companies in emerging-market economies. As of 2010, the surviving companies from the Seven Sisters are BP
, Chevron
, ExxonMobil
and Royal Dutch Shell
, which form four members of the "supermajor
s" group.
has used the label the "New Seven Sisters" to describe a group of what it argues are the most influential national oil and gas companies based in countries outside of the OECD
. According to the Financial Times this group comprises:
Enrico Mattei
Enrico Mattei was an Italian public administrator. After World War II he was given the task of dismantling the Italian Petroleum Agency Agip, a state enterprise established by the Fascist regime. Instead Mattei enlarged and reorganized it into the National Fuel Trust Ente Nazionale Idrocarburi...
, then-head of the Italian
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
state oil company Eni
Eni
Eni S.p.A. is an Italian multinational oil and gas company, present in 70 countries, and currently Italy's largest industrial company with a market capitalization of 87.7 billion euros , as of July 24, 2008...
, to describe the seven oil companies which formed the "Consortium for Iran" and dominated the global petroleum industry
Petroleum industry
The petroleum industry includes the global processes of exploration, extraction, refining, transporting , and marketing petroleum products. The largest volume products of the industry are fuel oil and gasoline...
from the mid-1940s to the 1970s. The group comprised Standard Oil of New Jersey and Standard Oil Company of New York (now ExxonMobil
ExxonMobil
Exxon Mobil Corporation or ExxonMobil, is an American multinational oil and gas corporation. It is a direct descendant of John D. Rockefeller's Standard Oil company, and was formed on November 30, 1999, by the merger of Exxon and Mobil. Its headquarters are in Irving, Texas...
); Standard Oil of California (now Chevron
Chevron Corporation
Chevron Corporation is an American multinational energy corporation headquartered in San Ramon, California, United States and active in more than 180 countries. It is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining,...
), Gulf Oil
Gulf Oil
Gulf Oil was a major global oil company from the 1900s to the 1980s. The eighth-largest American manufacturing company in 1941 and the ninth-largest in 1979, Gulf Oil was one of the so-called Seven Sisters oil companies...
(acquired by Chevron
Chevron Corporation
Chevron Corporation is an American multinational energy corporation headquartered in San Ramon, California, United States and active in more than 180 countries. It is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining,...
in 1985) and Texaco
Texaco
Texaco is the name of an American oil retail brand. Its flagship product is its fuel "Texaco with Techron". It also owns the Havoline motor oil brand....
; Royal Dutch Shell
Royal Dutch Shell
Royal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...
; and Anglo-Persian Oil Company
Anglo-Persian Oil Company
The Anglo-Persian Oil Company was founded in 1908 following the discovery of a large oil field in Masjed Soleiman, Iran. It was the first company to extract petroleum from the Middle East...
(now BP
BP
BP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...
).
In 1973 the members of the Seven Sisters controlled 85% of the world's petroleum
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
reserves but in recent decades the dominance of the companies and their successor companies has been reduced by the increasing influence of the OPEC
OPEC
OPEC is an intergovernmental organization of twelve developing countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. OPEC has maintained its headquarters in Vienna since 1965, and hosts regular meetings...
cartel
Cartel
A cartel is a formal agreement among competing firms. It is a formal organization of producers and manufacturers that agree to fix prices, marketing, and production. Cartels usually occur in an oligopolistic industry, where there is a small number of sellers and usually involve homogeneous products...
and state-owned oil companies in emerging-market economies.
Composition and history
In 1951 IranIran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
nationalised its oil industry, then controlled by the Anglo-Iranian Oil Company (now BP
BP
BP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...
), 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
United States Department of State
The United States Department of State , is the United States federal executive department responsible for international relations of the United States, equivalent to the foreign ministries of other countries...
suggested the creation of a "Consortium" of major oil companies. The "Consortium for Iran" was subsequently formed by the following companies:
- Anglo-Persian Oil CompanyAnglo-Persian Oil CompanyThe Anglo-Persian Oil Company was founded in 1908 following the discovery of a large oil field in Masjed Soleiman, Iran. It was the first company to extract petroleum from the Middle East...
(United Kingdom). This subsequently became Anglo-Iranian Oil Company and then British PetroleumBPBP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...
. Following the acquisition of AmocoAmocoAmoco Corporation, originally Standard Oil Company , was a global chemical and oil company, founded in 1889 around a refinery located in Whiting, Indiana, United States....
(which in turn was formerly Standard Oil of Indiana) and Atlantic RichfieldARCOAtlantic Richfield Company is an oil company with operations in the United States as well as in Indonesia, the North Sea, and the South China Sea. It has more than 1,300 gas stations in the western part of the United States. ARCO was originally formed by the merger of East Coast-based Atlantic...
it shortened its name to BP in 2000. - Gulf OilGulf OilGulf Oil was a major global oil company from the 1900s to the 1980s. The eighth-largest American manufacturing company in 1941 and the ninth-largest in 1979, Gulf Oil was one of the so-called Seven Sisters oil companies...
(United States) In 1985 most of Gulf was acquired by Chevron, with smaller parts acquired by BPBPBP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...
and Cumberland FarmsCumberland FarmsCumberland Farms is a regional chain of convenience stores based in Framingham, Massachusetts, and operating primarily in the eastern United States and Florida. Cumberland Farms operates roughly 600 retail stores, gas stations, and a support system including petroleum and grocery distribution...
. A network of service stations in the northeastern United States still bears the Gulf name. - Royal Dutch ShellRoyal Dutch ShellRoyal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...
(Netherlands/United Kingdom) - Standard Oil of California ("Socal") (United States) This subsequently became ChevronChevron CorporationChevron Corporation is an American multinational energy corporation headquartered in San Ramon, California, United States and active in more than 180 countries. It is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining,...
. - Standard Oil of New Jersey (EssoEssoEsso is an international trade name for ExxonMobil and its related companies. Pronounced , it is derived from the initials of the pre-1911 Standard Oil, and as such became the focus of much litigation and regulatory restriction in the United States. In 1972, it was largely replaced in the U.S. by...
) (United States) This subsequently became ExxonExxonExxon is a chain of gas stations as well as a brand of motor fuel and related products by ExxonMobil. From 1972 to 1999, Exxon was the corporate name of the company previously known as Standard Oil Company of New Jersey or Jersey Standard....
, which renamed itself ExxonMobilExxonMobilExxon Mobil Corporation or ExxonMobil, is an American multinational oil and gas corporation. It is a direct descendant of John D. Rockefeller's Standard Oil company, and was formed on November 30, 1999, by the merger of Exxon and Mobil. Its headquarters are in Irving, Texas...
following the acquisition of MobilMobilMobil, previously known as the Socony-Vacuum Oil Company, was a major American oil company which merged with Exxon in 1999 to form ExxonMobil. Today Mobil continues as a major brand name within the combined company, as well as still being a gas station sometimes paired with their own store or On...
in 1999. - Standard Oil Co. of New York ("Socony") (United States) This subsequently became MobilMobilMobil, previously known as the Socony-Vacuum Oil Company, was a major American oil company which merged with Exxon in 1999 to form ExxonMobil. Today Mobil continues as a major brand name within the combined company, as well as still being a gas station sometimes paired with their own store or On...
, which was acquired by ExxonExxonExxon is a chain of gas stations as well as a brand of motor fuel and related products by ExxonMobil. From 1972 to 1999, Exxon was the corporate name of the company previously known as Standard Oil Company of New Jersey or Jersey Standard....
in 1999. - TexacoTexacoTexaco is the name of an American oil retail brand. Its flagship product is its fuel "Texaco with Techron". It also owns the Havoline motor oil brand....
(United States). This was acquired by Chevron in 2001.
The head of the Italian state oil company, Enrico Mattei
Enrico Mattei
Enrico Mattei was an Italian public administrator. After World War II he was given the task of dismantling the Italian Petroleum Agency Agip, a state enterprise established by the Fascist regime. Instead Mattei enlarged and reorganized it into the National Fuel Trust Ente Nazionale Idrocarburi...
sought membership for the Italian oil company AGIP
Agip
Agip is an Italian automotive gasoline and diesel retailer established in 1926. It is a subsidiary of the multinational petroleum company Eni.In 2003, Eni S.p.A...
, but was rejected by what he dubbed the "Seven Sisters" to describe the Anglo-Saxon
Anglo-Saxon
Anglo-Saxon may refer to:* Anglo-Saxons, a group that invaded Britain** Old English, their language** Anglo-Saxon England, their history, one of various ships* White Anglo-Saxon Protestant, an ethnicity* Anglo-Saxon economy, modern macroeconomic term...
companies that controlled the Middle East’s oil production after World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
. British writer Anthony Sampson
Anthony Sampson
Anthony Terrell Seward Sampson was a British writer and journalist. He was educated at Westminster School and Christ Church, Oxford and served with the Royal Navy from 1944-47. During the 1950s he edited the magazine Drum in Johannesburg, South Africa...
took over the term when he wrote the book The Seven Sisters in 1975, to describe the shadowy oil cartel
Cartel
A cartel is a formal agreement among competing firms. It is a formal organization of producers and manufacturers that agree to fix prices, marketing, and production. Cartels usually occur in an oligopolistic industry, where there is a small number of sellers and usually involve homogeneous products...
, which tried to eliminate competitors and control the world’s oil resource.
Being well-organized and able to negotiate as a cartel
Cartel
A cartel is a formal agreement among competing firms. It is a formal organization of producers and manufacturers that agree to fix prices, marketing, and production. Cartels usually occur in an oligopolistic industry, where there is a small number of sellers and usually involve homogeneous products...
, the Seven Sisters were initially able to exert considerable power over Third World
Third World
The term Third World arose during the Cold War to define countries that remained non-aligned with either capitalism and NATO , or communism and the Soviet Union...
oil producers. In recent decades the dominance of the Seven Sisters and their successor companies has been challenged by the increasing influence of the OPEC
OPEC
OPEC is an intergovernmental organization of twelve developing countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. OPEC has maintained its headquarters in Vienna since 1965, and hosts regular meetings...
cartel
Cartel
A cartel is a formal agreement among competing firms. It is a formal organization of producers and manufacturers that agree to fix prices, marketing, and production. Cartels usually occur in an oligopolistic industry, where there is a small number of sellers and usually involve homogeneous products...
(formed in 1960), OECD countries' share of world oil production declining, and the emergence of powerful state-owned oil companies in emerging-market economies. As of 2010, the surviving companies from the Seven Sisters are BP
BP
BP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...
, Chevron
Chevron Corporation
Chevron Corporation is an American multinational energy corporation headquartered in San Ramon, California, United States and active in more than 180 countries. It is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining,...
, ExxonMobil
ExxonMobil
Exxon Mobil Corporation or ExxonMobil, is an American multinational oil and gas corporation. It is a direct descendant of John D. Rockefeller's Standard Oil company, and was formed on November 30, 1999, by the merger of Exxon and Mobil. Its headquarters are in Irving, Texas...
and Royal Dutch Shell
Royal Dutch Shell
Royal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...
, which form four members of the "supermajor
Supermajor
Supermajor is a name commonly used to describe the world's five largest publicly owned oil and gas companies.-Composition:Trading under various names around the world, the supermajors are considered to be:* BP p.l.c...
s" group.
The "New Seven Sisters"
The Financial TimesFinancial Times
The Financial Times is an international business newspaper. It is a morning daily newspaper published in London and printed in 24 cities around the world. Its primary rival is the Wall Street Journal, published in New York City....
has used the label the "New Seven Sisters" to describe a group of what it argues are the most influential national oil and gas companies based in countries outside of the OECD
Organisation for Economic Co-operation and Development
The Organisation for Economic Co-operation and Development is an international economic organisation of 34 countries founded in 1961 to stimulate economic progress and world trade...
. According to the Financial Times this group comprises:
- China National Petroleum CorporationChina National Petroleum CorporationChina National Petroleum Corporation is a state-owned fuel-producing corporation and the largest integrated oil and gas company in the People's Republic of China...
(ChinaChinaChinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
) - GazpromGazpromOpen Joint Stock Company Gazprom is the largest extractor of natural gas in the world and the largest Russian company. Its headquarters are in Cheryomushki District, South-Western Administrative Okrug, Moscow...
(RussiaRussiaRussia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
) - National Iranian Oil CompanyNational Iranian Oil CompanyThe National Iranian Oil Company , a government-owned corporation under the direction of the Ministry of Petroleum of Iran, is an oil and natural gas producer and distributor headquartered in Tehran. It was established in 1948...
(IranIranIran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
) - PetrobrasPetrobrasPetróleo Brasileiro or Petrobras is a semi-public Brazilian multinational energy corporation headquartered in Rio de Janeiro, Brazil. It is the largest company in Latin America by market capitalization and revenue, and the largest company headquartered in the Southern Hemisphere by market...
(BrazilBrazilBrazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
) - PDVSAPetróleos de Venezuela S.A.Petróleos de Venezuela, S.A. is the Venezuelan state-owned petroleum company. It has activities in exploration, production, refining and exporting oil, as well as exploration and production of natural gas...
(VenezuelaVenezuelaVenezuela , officially called the Bolivarian Republic of Venezuela , is a tropical country on the northern coast of South America. It borders Colombia to the west, Guyana to the east, and Brazil to the south...
) - PetronasPetronasPETRONAS, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company that was founded on August 17, 1974. Wholly owned by the Government of Malaysia, the corporation is vested with the entire oil and gas resources in Malaysia and is entrusted with the responsibility of developing and...
(Malaysia) - Saudi AramcoSaudi AramcoSaudi Aramco , officially the Saudi Arabian Oil Company, is the national oil company of Saudi Arabia.Saudi Aramco is the world's largest and most valuable privately-held company, with estimates of its value in 2011 to be $7 trillion USD.Saudi Aramco has both the largest proven crude oil reserves,...
(Saudi ArabiaSaudi ArabiaThe Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...
)
Further reading
- Anthony SampsonAnthony SampsonAnthony Terrell Seward Sampson was a British writer and journalist. He was educated at Westminster School and Christ Church, Oxford and served with the Royal Navy from 1944-47. During the 1950s he edited the magazine Drum in Johannesburg, South Africa...
. The Seven Sisters: The Great Oil Companies and the World They Shaped. New York: Viking Press, 1975. ISBN 0-553-20449-1. - Daniel YerginDaniel YerginDaniel Howard Yergin is an American author, speaker, and economic researcher. Yergin is the co-founder and chairman of Cambridge Energy Research Associates, an energy research consultancy. It was acquired by IHS Inc...
. The Prize: The Epic Quest for Oil, Money, and Power. New York: Simon & Schuster, 1991 - Stefano Beltrame, "Mossadeq.L'Iran, il petrolio,gli Stati Uniti e le radici della Rivoluzione Islamica", Rubbettino, 2009. ISBN 978-88-498-2533-6.
- Nico PerroneNico PerroneNico Perrone is an Italian essayist, historian and journalist. He firstly discovered papers on the plot for killing Enrico Mattei, the Italian state tycoon for oil in the 1950s....
. Obiettivo Mattei: Petrolio, Stati Uniti e politica dell' ENI (Target Mattei: Oil, United States and ENIEniEni S.p.A. is an Italian multinational oil and gas company, present in 70 countries, and currently Italy's largest industrial company with a market capitalization of 87.7 billion euros , as of July 24, 2008...
Policy). Rome: Gamberetti, 1995 - Nico PerroneNico PerroneNico Perrone is an Italian essayist, historian and journalist. He firstly discovered papers on the plot for killing Enrico Mattei, the Italian state tycoon for oil in the 1950s....
. Enrico MatteiEnrico MatteiEnrico Mattei was an Italian public administrator. After World War II he was given the task of dismantling the Italian Petroleum Agency Agip, a state enterprise established by the Fascist regime. Instead Mattei enlarged and reorganized it into the National Fuel Trust Ente Nazionale Idrocarburi...
. Bologna: il Mulino, 2001