13. THE BIG OIL SCANDAL
While the American people dig still deeper into their pockets to pay
for the ever-rising costs of gasoline (and to insure the ever-rising
profits of the oil companies), most believe it is the consequence of
a serious oil shortage. There are at least two stories the media have
not yet told the people about the real oil problem.
First, the oil shortage is not a phenomenon of the 1970's. There was
an oil crisis in the 1920's and there have been approximately six major
oil crises since then. Each time, after the oil companies got what they
wanted, the crisis ended.
Second, it now appears that the real power behind the dramatic drive
for increased oil prices in 1973/74 was the cozy relationship between
the Shah of Iran, David Rockefeller (and his Chase Manhattan Bank),
and Henry Kissinger.
Intelligence reports have identified the Shah as the major advocate
for increased prices among the OPEC nations. (In 1973 alone, the cost
of oil rose 470%.) Because of his close relationship to Kissinger, the
Shah was confident the U.S. would not object to such price hikes. There
also is evidence that Exxon, Mobil, Texaco, and Standard Oil of California
actually encouraged such increases, knowing that extra costs could be
passed on to the public for larger profits.
King Faisal of Saudi Arabia offered to stem the tide by flooding the
market with oil. He appealed to the U.S. to pressure the Shah to help
break the prices created by the oil cartel. The Nixon administration,
however, made no move to intervene. This failure guaranteed that the
Shah, the Chase Manhattan Bank, and the oil companies would realize
And now, once again after the oil companies have achieved what they
wanted, we have learned that the nation's reserve gasoline supply reached
an all-time historic high in mid-March 1980. The American people again
have been victimized by a profit-motivated strategy carefully orchestrated
by a select few and by the failure of their own government to fight
The failure of the mass media to tell the American public the full
story about the "big oil scandal" qualifies this story for
nomination as one of the "best censored" stories of 1979.
Jack Anderson columns, June 19 and August 26, 1979; New York Times
Magazine, Oct. 14, 1979, "The Case Against the Oil Companies,"
by Robert Sherrill; The Nation, June 16, 1979, "Deep in the Heart
of Texaco," by Charles J. Levy, and June 30, 1979, "Where's
the Gas Gone?"; UPI, Santa Rosa Press Democrat, CA, Mar. 21,.1980,
"U.S. Gas Reserves Hit All-Time High."