Arabian American Oil Company
The Arabian American Oil Company (ARAMCO) originated upon the signing of Saudi Arabia’s finance minister and Lloyd N. Hamilton, an attorney representing SOCAL, now Chevron. Oil exploration began in 1936, it transferred 50 percent of the Bahrain Petroleum Company (BAPCO) and 50 percent of CASOC to the Texas Company (Texaco), receiving in return $21 million in cash and deferred payments.
- Founded in the 1930s after Standard Oil of California struck Oil in Saudi Arabia
- Americans paid Saudis a royalty on the oil produced
- Over time Saudis demanded higher royalties
- Saudi created OPEC with other oil exporting countries - to protect their own interests