Abstract
FROM ITS EARLIEST DAYS the production of crude oil in the United States has been widely dispersed among numerous producers. Although the concentration of domestic crude production has been rising as the result of mergers and other causes, it still remains well below the levels of oil-producing countries elsewhere. Among the factors that have combined to bring this about is a legal principle not present in most other oil-producing lands: the private ownership of subsoil mineral rights. A philosophic principle that has emerged in the development of Western civilization is the right of the individual to own property, including the ownership not only of the surface land but of what lies below. Where the subsoil mineral rights are the property of the state or the ruler, as in the Middle East, the obtaining of concessions has involved negotiations only with the governing body. But in the United States, the right to withdraw oil must be negotiated with individual private property owners whose number is legion.
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Notes
Temporary National Economic Committee, Hearings on the Petroleum Industry, Pt. 14, 1940, pp. 7,593–7,594.
Federal Trade Commission, Report on the Petroleum Trade in Wyoming and Montana, 1922, p. 3.
Adolf A. Berle and Gardiner C. Means, The Modern Corporation and Private Property, rev. edn., Harcourt, Brace, New York, 1967, pp. 320–321.
Fred C. Allvine and James M. Patterson, Highway Robbery: An Analysis of the Gasoline Crisis, Indiana University Press, Bloomington, Ind., 1974, p. 166.
93rd Cong., 1st Sess., Senate Subcommittee on Antitrust and Monopoly, Hearings on the Natural Gas Industry, Pt. 1, Competition and Concentration in the Nation’s Gas Industry, 1973, p. 499 (emphasis in original). (Hereinafter referred to as Hearings on the Natural Gas Industry)
Thomas G. Moore, “The Petroleum Industry,” in The Structure of American Industry, ed. Walter Adams, 4th edn., Macmillan, New York, 1971, p. 130. For refined products the proportions are 27% by pipeline, 30% by water carrier, and 43% by truck.
The 1972 data on the interlocking directorates are compiled from Stanley H. Ruttenberg and Associates, The American Oil Industry: A Failure of Antitrust Policy, 1974. In 1972, Gulf had no interlocks with other major oil companies.
See John M. Blair, Economic Concentration, Harcourt Brace Jovanovich, New York, 1972, p. 78.
See Lundberg Survey, National Petroleum News, 1973, Factbook Issue, pp. 113–120.
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© 1976 John M. Blair
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Blair, J.M. (1976). Concentration in Domestic Oil. In: The Control of Oil. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-81487-9_6
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DOI: https://doi.org/10.1007/978-1-349-81487-9_6
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