Backyard Empire: The U.S. in Latin America · Episode 3 of 14 · 58 min
Standard Oil's Secret Cartel With Nazi Germany
After the 1911 breakup of the Standard Oil trust, its largest piece, Standard Oil of New Jersey, spread across Latin America, buying concessions and shaping petroleum laws until countries pushed back. The episode also examines its 1929 cartel with I.G. Farben, separating what the record shows, such as the patent pool, the synthetic-rubber delay, and lead transfers, from myths like U-boat refueling.
Who's who
- Lázaro Cárdenas+2 more episodesMexican president who nationalized foreign oil in 1938
- William S. FarishPresident of Standard Oil of New Jersey who defended the Farben cartel
- Harry S. Truman+14 more episodesSenator whose wartime committee exposed the rubber delay
- Thurman ArnoldAntitrust chief who pressed the 1942 case
- Huey LongSenator who denounced 'oil imperialism' around the Chaco War
- Franklin D. Roosevelt+28 more episodesPresident whose Good Neighbor Policy restrained U.S. response
- Juan Vicente GómezVenezuelan dictator who granted sweeping oil concessions
- Porfirio DíazMexican dictator under whom foreign oil operated with wide privileges
Where it happens
- Mexico+10 more episodesExpropriated foreign oil in 1938, creating Pemex
- Bolivia+2 more episodesNationalized Standard Oil's holdings in 1937
- Venezuela+1 more episodeHome of Creole Petroleum; 1943 fifty-fifty profit split
- Germany+2 more episodesHome of I.G. Farben, Standard's cartel partner
Timeline
- 1911Supreme Court breaks Standard Oil into 34 companies
- 1929Standard Oil and I.G. Farben sign cartel and patent agreements
- March 1937Bolivia nationalizes Standard Oil of Bolivia
- March 18, 1938Mexico expropriates foreign oil companies and creates Pemex
- March 1942Consent decree, then Truman Committee hearing on the rubber shortage
- 1943Venezuela moves toward a fifty-fifty split of oil profits
Still debated
Historians dispute how far oil interests caused the Chaco War; the 'oil war' thesis is influential but recent scholarship finds broader causes. The U-boat refueling story is not supported by credible history.
Connected episodes in other series
The Good War's Fine Print: The WWII Draft's Forgotten LosersGreeting: America and the Draft · Episode 5Also features Franklin D. Roosevelt, Harry S. Truman
Redrawing the MapThe Ground Rules · Episode 9Also features Lázaro Cárdenas
The Deal: Wagner, Flint, and Taft-HartleyThe Long Argument: Capital vs. Labor · Episode 7Also features Franklin D. Roosevelt, Harry S. Truman
Why Iran Once Trusted America: Oil, Empire & Mosaddegh's RiseIran & America: A Century and Counting · Episode 1Also features Harry S. Truman