Socal and Texaco would pool all their assets “East of Suez,” with each having an equal interest in the new venture. Socal threw in its Bahrain and Saudi oil concessions, as well as a concession in the East Indies. The joint venture also took over Texaco’s widespread marketing system in Africa and Asia. The other companies may have had their Red Line; Socal and Texaco delineated their consolidated area by what they called the “Blue Line.” The California-Texas company, or Caltex, as their joint venture became known, would provide the vitally needed outlet both for Bahrain production and for any
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