4.1.8

TNCs - Aramco & Anglo-Iranian Oil

Test yourself

TNCs - Aramco & Anglo-Iranian Oil

TNCs can bring expertise to regions, but they can also exploit countries' natural resources and interfere in geopolitics.

Illustrative background for TNCs bringing expertiseIllustrative background for TNCs bringing expertise ?? "content

TNCs bringing expertise

  • The shah (king) of Iran sold a concession to a British company, Anglo-Iranian Oil, in the early 1900s, allowing the company to develop and refine Iran's oil.
  • When Iran tried to nationalise their oil operations in 1953, they did not have workers with enough skill to run the oil operations themselves.
  • Similarly, in Saudi Arabia, Aramco was an American company that worked with the King of Saudi Arabia to find and produce oil.
  • Without these TNCs, oil may not have been developed until decades later.
Illustrative background for TNCs interfering in politicsIllustrative background for TNCs interfering in politics ?? "content

TNCs interfering in politics

  • When Mohammad Mossadegh tried to nationalise the Anglo-Iranian Oil Company, the British government supported a coup organised by Kermit Roosevelt against him and restored the shah.
  • When the oil industry was nationalised, the British banned foreign oil workers from moving to Iran to support the Iranian oil industry.
  • In Saudi Arabia, the al-Saud family had a 50:50 profit share with Aramco. Iran had a worse deal with the Anglo-Iranian Oil Company and the British company refused to renegotiate it.

Jump to other topics

1Tectonic Processes & Hazards

2Option 2A: Glaciated Landscapes & Change

3Option 2B: Coastal Landscapes & Change

4Globalisation

5Option 4A: Regenerating Places

6Option 4B: Diverse Places

7The Water Cycle & Water Insecurity (A2 only)

8The Carbon Cycle & Energy Security (A2 only)

9Superpowers (A2 only)

10Option 8A: Health & Human Rights (A2 only)

11Option 8B: Migration & Identity (A2 only)

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