TNCs - Aramco & Anglo-Iranian Oil

Geography: Edexcel A Level, topic 4.1.8

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

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.

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.

Test yourself on TNCs - Aramco & Anglo-Iranian Oil