Democratic Underground - Since the 1930s...(From my cite in post #18):

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Because the majors had potential production from so many Middle Eastern fields, they could in effect choose which fields they would exploit and which they would pump at low production levels. Where there were consortia, production levels were controlled by a specific formula. Since the four American companies in Aramco, and Gulf in Kuwait, were rich in crude oil, they had no real interest in major new production. Production from Iran and Saudi Arabia was held at much less than capacity. Partly because of US government wishes, however, these two countries increased production more than others, to keep the Shah and the King happy, and to allow them (especially the Shah) the money to outfit their armed forces with the newest American hardware. If the majors increased production in Iran and Saudi Arabia by 12% and 10% respectively, more than the 9.55% that global demand would stand at good prices, production had to be held back even more in other rich oil-producing areas. Kuwait and Iraq were usually chosen as the producers to have low production rates: from 1958-1972, their production increased 5.9% and 5.1% respectively. Discoveries in other nations (such as Oman) were simply not developed at all. This was the fatal flaw in the system: sooner or later, producer nations would realize the extent of the manipulation, and react to it.

For example, Iraq was manipulated by neglect. The partners in Iraq Petroleum discovered a great number of likely fields in the 1930s, but were slow to drill them. They already had access to enormous fields in Saudi Arabia, Iran, and Kuwait, and Iraqi oil production was simply not needed (except possibly by the Iraqis!). Iraq Petroleum became notorious for this kind of tactic, which it also used in Qatar and Syria. Even today no-one has any clear idea just how large Iraq's oil reserves are, except that they are much greater than its current production implies.

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http://www-geology.ucdavis.edu/~cowen/~GEL115/115CH13oil.html
The whole link is really well worth a read...

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