Hostname: page-component-cd9895bd7-mkpzs Total loading time: 0 Render date: 2024-12-23T10:55:31.228Z Has data issue: false hasContentIssue false
  • English
  • Français

Venezuela's Nascent Oil Industry and the 1932 US Tariff on Crude Oil Imports, 1927–1935*

Published online by Cambridge University Press:  13 January 2010

Brian S. McBeth
Brian S. McBeth
Affiliation:
St Antony's College, Oxforda
Get access Rights & Permissions [Opens in a new window]

Abstract

After a brief description of the initial development of Venezuela's crude oil industry, this paper examines the impact the 1932 US tariff on crude oil imports had on the country. The US tariff on crude oil imports stabilised domestic crude oil prices but prevented consumers from benefting from lower prices in refned petroleum products. The large us international integrated crude oil companies gained from higher crude oil prices for their domestic production while supplying their european markets with mostly cheap crude oil from their newly developed Venezuelan oilfelds. The tariff increased the Venezuelan oil industry's vulnerability to international events because it narrowed the competitive edge it had over domestic us crude oil production. consequently, the Gómez dictatorship in Venezuela at the time became more dependent on the oil companies operating in the country since they could reduce production considerably, or even leave the country as quickly as they entered with a negative impact on government revenues.

Resumen

Después de una breve explicación del desarrollo inicial de la industria petrolera venezolana, el artículo examina el impacto de la tarifa a las importaciones de petróleo promulgada en los EE.UU. en 1932 sobre Venezuela. La tarifa americana a las importaciones de petróleo crudo estabilizó los precios de petróleo que habían llegado a un nivel muy bajo. Esto impidió que los consumidores se beneficiaran de precios bajos en productos de petróleo refinado. Las grandes petroleras integradas americanas que suministraban petróleo al mercado doméstico e internacional ahora recibían precios relativamente altos para su producción doméstica mientras abastecían los mercados europeos en la mayoría con petróleo barato de sus nuevos yacimientos venezolanos. La tarifa aumentó la vulnerabilidad de Venezuela a los eventos internacionales porque se redujo la ventaja comparativa que tenía con la producción de petróleo de los EE.UU. En consecuencia, la dictadura gomecista se volvió más dependiente de las compañías petroleras extranjeras en el país, ya que éstas podrían reducir considerablemente la producción o incluso abandonar el país tan pronto como habían entrado con un impacto negativo en los ingresos fiscales del gobierno.

Keywords

international relationsnatural resourcespetroleumtariffsVenezuelainterwar yearsrelaciones internacionalesrecursos naturalespetróleoarancelesVenezuelaperiodo de entreguerras
Type
Artículos/Articles
Information
Revista de Historia Economica - Journal of Iberian and Latin American Economic History , Volume 27 , Issue 3 , Invierno 2009 , pp. 427 - 462
Copyright
Copyright © Instituto Figuerola de Historia y Ciencias Sociales, Universidad Carlos III de Madrid 2009

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

BIBLIOGRAPHY

Archivo Histórico de Mirafores, Secretaría General de la Presidencia de la República, Correspondencia Presidencial, 1927–1935.Google Scholar
Archivo Histórico de Mirafores, Secretaría General de la Presidencia de la República, Correspondencia del Secretario General, 1927–1935.Google Scholar
Archivo particular de Torres, Gumersindo, Correspondencia, 1927–1935.Google Scholar
Archivo particular del Torres, Gumersindo Dr, Copiadores, 1927–1935.Google Scholar
Cook, Roy C. (1941): Control of the Petroleum Industry by Major Oil Companies. Temporary National Economic Committee —Investigation of Concentration of Economic Power—, Senate Committee Print Monograph No. 39, 76 cong 3 sess. Washington, USGPO.Google Scholar
«Financial Position of American Oil Industry Strengthened during Depression». Petroleum Press Service, 1:18, pp. 4–5, sept. 15, 1934.Google Scholar
Herrera, F. R. (1920): «Datos sobre la Industria Petrolífera en Venezuela». Boletín del Ministerio de Fomento, 1 (2), pp. 2–16.Google Scholar
Latin American World, 14: 5, 51, January 1933.Google Scholar
«Growing profts of US oil industry». Petroleum Press Service, 2:22, pp. 3–4, 1935.Google Scholar
«Oil Embargo? Merger?». Time, 16.2.31 in http://www/time/magazine/article/0,9,71,7410941,00.html.Google Scholar
Osborne, J. B. (1912): «Protection of American Commerce and Capital Abroad». North American Review, 195, pp. 687–700.Google Scholar
«Shifts in European supply and the Iraq Oil». Petroleum Press Service, 1: 5, pp. 1–3, 1934.Google Scholar
«The Cost of Producing Oil». Oil News, Jan. 14, 1932, pp. 40–41.Google Scholar
UK National Archives, Cabinet Office, Committee of Imperial Defence, Oil Board, 1927–1935.Google Scholar
UK National Archives, Foreign Office, General Correspondence, Political, 1927–1935.Google Scholar
US Congressional Record, 1927–1935.Google Scholar
US Energy Information Administration at http://tonto.eia.doe.gov/dnav/pet/pet/ sum crdsnd adc mbbl m.htm.Google Scholar
US House of Representatives (1931): «Regulating importation of petroleum and related products». Hearings before the Committee on Ways & Means, 71 Cong., 3 Sess. Washington, USGPO.Google Scholar
US House of Representatives (1932): «Production Costs of Crude Petroleum and of Refined petroleum products». House Document No. 195, 72 Cong. 1 Sess. Washington: USGPO.Google Scholar
US House of Representatives (1934): «Petroleum Investigation». Hearings before a Sub-Committee of the Committee on Interstate and Foreign Commerce, Part 1, 73 Cong. (Recess). Washington, USGPO.Google Scholar
US House of Representatives (1934a): «Petroleum Investigation». Hearings before a Sub-Committee of the Committee on Interstate and Foreign Commerce, Part 3, 73 Cong. (Recess). Washington, USGPO.Google Scholar
US House of Representatives (1940): Petroleum Industry. Investigation of Economic Power, Hearings before the Temporary National Economic Committee, Part 14, Section 1, 76 Cong. 1 Sess. Washington, USGPO.Google Scholar
US House of Representatives (1940a): Petroleum Industry Investigation of Concentration of Economic Power. Hearings before the Temporary National Economic Committee, Part 17, Section 4, 76 Congress, 1 Sess. Washington, USGPO.Google Scholar
US House of Representatives (1950): «Effects of Foreign Oil Importers on Independent Domestic Producers». A Report of the Sub-Committee on Oil Imports to the Select Committee on Small Businesses', House Report No. 2344, 81 cong. 2 sess. Washington: USGPO.Google Scholar
US Government, Records of the Department of State relating to the Internal Affairs of Venezuela (DS) 831.6363/284 Department of State, Office of the Economic Adviser, «Petroleum Situation in Venezuela», Washington, 2.9.25.Google Scholar
US National Archives, Records of the Department of State relating to the Internal Affairs of Venezuela, 1927–1929.Google Scholar
US Senate (1931): «Cost of Crude Petroleum in 1931». Senate Document No. 267, 71 Cong. 3 Sess. Washington, USGPO.Google Scholar
US Senate (1931a): Regulating Importation of Petroleum and Related Products. Hearings before the committee on Commerce, 71 Cong. 3 Sess. January 29, 1931. Washington: USGPO.Google Scholar
US Senate (1942): «Patents». Hearings before the Committee on Patents, 77 Cong., 2 Sess. Washington, USGPO.Google Scholar
US Senate (1945): «Foreign Contracts Act». Joint Hearings before a Sub-Committee of the Committee on the Judiciary U.S. Senate and the Special Committee Investigating Petroleum Resources, 79 Cong., 1 Sess. Washington, USGPO.Google Scholar
US Senate (1946): «American Petroleum Interests in Foreign Countries». Hearings before a Special Committee Investigating Petroleum Resources, 79 Cong 1 Sess. Washington, USGPO.Google Scholar
US Senate (1946a): «Investigation of Petroleum Resources». Hearings before a Special Committee Investigating Petroleum Resources, 79 Cong. 1 Sess. Washington, USGPO.Google Scholar
US Tariff Commission (1946): Petroleum, War Changes in Industry Series No. 17. Washington: USGPO.Google Scholar
US Tariff Commission (1952): «The International Petroleum Cartel». Senate Committee Print No. 6, 82 Cong. 2 Sess. Washington, USGPO.Google Scholar
Venezuela, Ministerio de Minas e Hidrocarburos, Dirección General (1964): Petróleo y Otros Datos Estadísticos. Caracas, NP.Google Scholar
Venezuela, Ministry of Mines and Hydrocarbons, Directorate General (1966): Venezuelan Petroleum Industry. Statistical Data. Caracas, NP.Google Scholar
American Petroleum Institute (1939): Petroleum Facts & Figures. New York, API, 6th Edition.Google Scholar
Baptista, A. (1997): Bases Cuantitativas de la Economia Venezolana, 1830–1995. Caracas, Fundación Polar.Google Scholar
Bastiat, F. (1996): Economic Sophisms. Irvington-on-Hudson, New York, The Foundation for Economic Education.Google Scholar
Bates, J. L. (1963): The Origins of Teapot Dome. Progressive Parties and Petroleum, 1909–1921. Urbana: University of Illinois Press.Google Scholar
Bhagwati, J. (1988): Protectionism. Cambridge, Mass., MIT Press.Google Scholar
Blakeley, R. G., and Blakeley, G. S. (1932): «The Revenue Act of 1932». American Economic Association, 22 (4), pp. 620–640.Google Scholar
Bradley, R. L. Jr (1989): The Mirage of Oil Protection. Lanham, University Press of America.Google Scholar
Brand, D. R. (1983): «Corporatism, the NRA and the Oil Industry». Political Science Quarterly, 98: 1 (Spring), pp. 99–118.CrossRefGoogle Scholar
Brown, J. C. (1985): «Why Foreign Oil Companies Shifted their Production from Mexico to Venezuela during the 1920s». The American Historical Review, 90: 2, pp. 362–385.CrossRefGoogle Scholar
Butler, J. D. (1959): «The infuence of economic factors on the location of oil refineries (with primary reference to the world outside the USA and USSR)». The Journal of Industrial Economics, 1 (3), pp. 187–201.CrossRefGoogle Scholar
Carrillo Batalla, T. E. (2003): Cuentas Nacionales de Venezuela, 1915–1935. Caracas, Banco Central de Venezuela.Google Scholar
De Chazeau, M. G., and Kahn, A. E. (1973): Integration and Competition in the Petroleum Industry. Port Washington, New York, Kennikat Press.Google Scholar
Deterding, H. Sir (1934): An International Oilman. london: Ivor Nicholson & Watson Ltd.Google Scholar
Dunn, R. W. (1926): American Foreign Investments. New York: B W Huebsch & The Viking Press, 1926.Google Scholar
Engler, R. (1961): The Politics of Oil. A Study of Private Power and Democratic Directions. New York: The MacMillan Co.Google Scholar
Knudson, D. L. T. (1975): «Petroleum, Venezuela and the United States, 1920–1941». PhD Diss., Michigan State University.Google Scholar
Larson, H. M., Knowlton, E. H., and Popple, Ch. S. (1971): History of Standard Oil Company (New Jersey). New Horizons, 1827–1950. New York, Harper Row Publishers.Google Scholar
Mcbeth, B. S. (1983): Juan Vicente Gómez and the Oil Companies in Venezuela, 1908–1935. Cambridge, Cambridge University Press, 1983.CrossRefGoogle Scholar
Mcbeth, B. S. (1985): British Oil Policy, 1919–1939. London, Frank Cass & Co.Google Scholar
Mcdermond, C. C. (1932): Who's Who in Venezuela. Maracaibo: NP, 2 Ed.Google Scholar
Messerlin, P. A. (2001): Measuring the Costs of Protectionism in Europe: European Commercial Policy for the 2000s. Washington, D. C., Institute for International Economics.Google Scholar
Nash, G. D. (1968): The United States Oil Policy. Pittsburgh: University of Pittsburgh Press.Google Scholar
Noggle, B. (1965) Teapot Dome. Oil and Politics in the 1920's. New York: W W Norton & Co. Inc.Google Scholar
Rangel, D. A. (1970): Capital y Desarrollo. El Rey Petróleo. Caracas: Universidad Central de Venezuela, vol. 2.Google Scholar
Redfield, A. H. (1942): «Our Petroleum Diplomacy in Latin America». PhD Diss., The American University (Washington).Google Scholar
Ricardo, D. (1992): The Works and Correspondence of David Ricardo, vol. 1, ed. Sraffa, Piero & Dobb, Maurice, Cambridge, Cambridge University Press.Google Scholar
Rippy, J. F. (1958): Globe & Hemisphere. Latin America's Place in Post-War Foreign Relations of the United States. Chicago: Henry Regency & Co.Google Scholar
Rostow, E. V. (1948): A National Policy of the Oil Industry. New Haven: Yale University Press.CrossRefGoogle Scholar
Schaffer, E. H. (1968): The Oil Import Program of the United States. New York: Frederick A Praeger.Google Scholar
Skinner, W. R. (1936): The Oil and Petroleum Manual, London, NP.Google Scholar
Smiley, G. (2002): Rethinking the Great Depression. Chicago, Ivan R Dee Publisher.Google Scholar
Smith, A. (1981): The Wealth of Nations. Indianapolis: Liberty Fund/Liberty Press.Google Scholar
Uren, L. Ch. (1950): Petroleum Production Engineering. Petroleum Production Economics. New York, McGraw-Hill Book Co. Inc.Google Scholar
Watkins, M. W. (1973): Oil stabilization or conservation? A case study in the organization of industrial control. New York, Harper & Brothers Publishers.Google Scholar
Williamson, H. F.et al (1963): The American Petroleum Industry. The Age of Energy, 1899–1959. Vol. 2, Evanston, Northwestern University Press.Google Scholar