'File 14/15 Middle East Oil' [‎8v] (16/38)

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enough to discover new sources of oil, as a result of which increased quantities of
petroleum*products were produced at the most critical moment, in an area in which these
increased supplies were of vital importance.
52* The oilfields at present in production in S^ypt are controlled by An^lo-
Bgyptian Oilfields, Ltd., managed by the Shell Group, the controlling interests being
held by Shell and the Anglo-Iranian (British). The Egyptian Government holds £100,000
"C" Shares in 'die Company and other shares are held by the public.
53. Production da’ises back to 1911, when oil was struck at Gemsah, on the western
shore of the Red Sea, some 150 miles south of Suez. walls here here yielded only a
small production but in 1914 the Hurghada oilfield was discovered. This was rapidly
developed during the 1914-^9 war, yielding in 1918 a peal: of 1,935*000 barrels, an
excessive rate of production for this field, which literally "wore itself out in the
service of the Allies”.
54* After the war, production from Hurghada fie,ld continued on a reduced rate and
with a tendency to fall. In 1938 hov/ever, a new and bigger oilfield was discovered at
Ras Gharib, some 120 miles south of Suez, and by September 1939 production from this
field had risen to 15,000 barrels per day. Since 1938,almost the whole of the production
has been obtained from Ras Gharib, Hurghada being practically exhausted.
55* The new discovery, coming 0.3 it did just before the opening of a .second WohPj^
War, was of great value to the Allied cause. The transport of petrol from Abadan, over
3,000 miles away, or from America round South Africa, became almost prohibitive in 1%-0-
42 vhen Allied tanker losses assumed unprecedented proportions. Only the presence
considerable supplies on the spot helped to ease what would otherwise have been an in
tolerable strain. Rn.s Gharib production rose to over 9.000.000 barrels (1,250,000 tonSj
per annum.
56. The rapid increase in production i rom the Ras Gharib field c-alled for a
corresponding incre 0 .se in refinery facilities at Suez to cope with the unexpectedly
high level of production. The outbreak of war made it impossible to embark on a normal
programme of refinery expansion and development, but by ingenious adjustments and more
rapid throughput, it was found possible to cope wdth the full production of crude oil.
■■ 57 . In view of the importance to the Allied war effort it is indeed amazing that
the enemy did not carry out more determined air attacks against the refinery and oil
fields. Emergency measures were taken to meet such an Sven vitality, but fortunately,
except: for the sinking of a tanker in the later part of 1942 ac Ras Gharib, whereby ohe
submarine loading line was temporarily put out^of action, the Egyptian oilfields and
refineries suffered no important damage from enemy air raids.
58 . Throughout the war the oilfields and refinery were vorked uo raximum capacity.
New fields are urgently needed to maintain Egyptian outpuv at ivs current level and
exploration work is in progress in many areas. The Anglo-Egyptian Oilfields Co. hold a
number of exploratory concessions. In addition, exploratory licences have been 'cakon
up by a number of American Groups, including the Standard Oil Co. of New Jersey, bocony .
Vacuum, the Standard Oil Company of California and the Texas Oil Company. The areas
involved include the Red Sea Littoral, '^he S^nai Peninsula, areas west cv the ivilo and
along the Mediterranean coast. Geologically there are several interesting possibilities
but these' still remain to be proved, (As this report goes to press it is reporv ed tha^
the Anglo-Egyptian Oilfields Co. have struck oil in Sinai, opposite Suez).
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Arabian Peninsula and Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. .
59. This is the most recent area to be developed and is noteworthy for the-extent
to which American oil interests have taken a leading part in recent developments, having
struck several extremely rich oil deposits, particularly along tho eastern coast 01
Arabia near the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. .
60. The Bahrein Petroleum Company, which holds a concession over the Bahrein
Islands, is technically a British (Canadian) company, but is wholly American owned and
forms a unit the Calx ex Group (Standard Oil of California and Texas Corporation).
The Company first established ivself in Bahrein in 1930 by-purchasing from a.British
syndicate a concession dating from 1925. In 1932, tho new company struck oil and two
years later conmercial production began, a refinery having'been built in the meantime.
In 1934 the original concession area cf 100,000 acres was.extended and again in 1940
until it now includes the whole of the Sheikh’s present and future dominions including
the reefs and territorial waters surrounding the island. Output from tine field averages
about 1,000,000 tons per annum (1,135,000 tons in 1938). The refinery capacity of about
1 , 500,000 tons per annum was increased in 1941- to 2 , 750*000 tons per annum, to deal with
crude oil from Dhahran, on the mainland. The refinery can now produce all
/types of