The Prize: The Epic Quest for Oil, Money, and Power

by Daniel Yergin

There was great apprehension about international cartels in any industry and, especially, any show of camaraderie among the giants of oil. Yet these arrangements, outside the United States, did not run counter to the laws of various countries. On the contrary, both the temper of the time and the pressure of government policies, in addition to the business environment, pushed toward some form of collaboration and cartelization. Within the walls of each company that was a party to the agreements, the senior management would refer to the management of other companies as “friends”: “Friends in London say . . .” or “Friends not yet made up mind.” But it was not friendship that was at work, not a “brotherhood of oil.” Rather it was a sense of desperation in a depressed world economy and in the face of stagnant demand that really brought the oil companies together. They were aggressive competitors, and they never forgot that. The efforts at collaboration were paralleled by pervasive distrust, wariness, and deep-seated rivalry. Even as they were talking cooperation, they were plotting new attacks.