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Post-war – 1946-1970

Like many companies, Anglo-Iranian, which would later become BP, lost a lot in World War II. But like many companies, it also gained the resolve it needed to keep moving forward
The Lali oilfield in the foothills of the Zagros mountains in south western Iran, one of the several oilfields discovered by BP in Persia - renamed Iran in 1935
Fourth-year fitter apprentice Turner JL Rees receives refinery maintenance training at the British Petroleum Company's Llandarcy oil refinery
Arab drill operatives working on rig 53 in the Dukhan oil field in Qatar during the early 1950s
Eva Farragher, a Sohio service station attendant, 1952
The opening of a new Amoco service station near Baltimore, US, in 1953. Bunting lines the car park, directly in front of the illuminated store
Motorists queuing for rationed petrol in the UK, following the closure of the oil supply route through the Suez Canal in 1956
Kuwaiti rigmen preparing to run the drillpipe in 1956
Cars on the forecourt of a Sohio service station in the Tremont shopping centre, Columbus, Ohio, 1957
Alkylation units at the Sinclair Oil Corporation refinery, which enabled 100-octane gasoline to be produced
Amoco fuelling crew at the New Orleans to St Louis powerboat race in 1958
A BP explorer, standing by a glacial lake, while surveying in Alaska, 1961
A BP kerosene stall at Port Harcourt's local market, Nigeria, 1961. A trader secures purchases onto the customer's bike
Refuelling the amphibious Britten-Norman Cushioncraft at a BP service station at Bembridge, Isle of Wight, 1963
Put River No. 1, BP's discovery well at Prudhoe Bay, in its snowy surroundings. 1969
Fuelling the victorious Mario Andretti's Hawk-Ford with Standard fuel at the 1969 Indy 500
The Lali oilfield in the foothills of the Zagros mountains in south western Iran, one of the several oilfields discovered by BP in Persia - renamed Iran in 1935
Fourth-year fitter apprentice Turner JL Rees receives refinery maintenance training at the British Petroleum Company's Llandarcy oil refinery
Arab drill operatives working on rig 53 in the Dukhan oil field in Qatar during the early 1950s
Eva Farragher, a Sohio service station attendant, 1952
The opening of a new Amoco service station near Baltimore, US, in 1953. Bunting lines the car park, directly in front of the illuminated store
Motorists queuing for rationed petrol in the UK, following the closure of the oil supply route through the Suez Canal in 1956
Kuwaiti rigmen preparing to run the drillpipe in 1956
Cars on the forecourt of a Sohio service station in the Tremont shopping centre, Columbus, Ohio, 1957
Alkylation units at the Sinclair Oil Corporation refinery, which enabled 100-octane gasoline to be produced
Amoco fuelling crew at the New Orleans to St Louis powerboat race in 1958
A BP explorer, standing by a glacial lake, while surveying in Alaska, 1961
A BP kerosene stall at Port Harcourt's local market, Nigeria, 1961. A trader secures purchases onto the customer's bike
Refuelling the amphibious Britten-Norman Cushioncraft at a BP service station at Bembridge, Isle of Wight, 1963
Put River No. 1, BP's discovery well at Prudhoe Bay, in its snowy surroundings. 1969
Fuelling the victorious Mario Andretti's Hawk-Ford with Standard fuel at the 1969 Indy 500

As Europe rebuilt so did Anglo-Iranian, investing in refineries in France, Germany and Italy plus new marketing efforts in Switzerland, Greece, Scandinavia and the Netherlands. BP gasoline went on sale for the first time in New Zealand.

But this fragile new stability would soon be shattered by political crises in the oil-rich Middle East, with tremors that would shake the ‘Iranian’ right out of Anglo-Iranian’s company name.

 

An era ends, an era begins

William D’Arcy’s hunch that the Middle East might be an overlooked gold mine for oil had transformed the region, giving previously impoverished countries new income and political influence.

 

But was that enough? Nationalists throughout the Middle East angrily questioned Western companies’ right to profit from Middle Eastern resources. With Britain’s imperial hold on the region rapidly unravelling, Anti-British sentiment escalated especially.

BP tanker The British Queen passing through the Suez Canal in 1960

BP tanker The British Queen passing through the Suez Canal in 1960

Among the nationalists, Iran’s prime minister spoke vehemently against Anglo-Iranian’s presence in Iran. In 1951 he convinced the Iranian Parliament to nationalize oil operations within the country’s borders.


Women and children had already evacuated. The refinery creaked to a stop and was shut. Three months later, all political debate exhausted, the last of Anglo-Iranian’s expatriate employees boarded a cruise ship and were gone.

An impasse followed. Governments around the world boycotted Iranian oil. Within 18 months, the Iranian economy was in ruins. Mobs in the streets demanded the prime minister’s resignation. When the parties returned to the table, they hashed out a new arrangement allowing a consortium of companies, including Standard Oil of Indiana (Amoco) and others, to run the oil operations in Iran. Anglo-Iranian’s stake was 40%.

The gentlemen’s agreement between the former Shah of Persia and William D’Arcy had run its course. In 1954, the board changed the company’s name to The British Petroleum Company.

 

New finds in some unexpected places

By the 1960s the technology of oil exploration had come a long way. It was still, however, a time-consuming and inexact science. Malta looked promising, but had nothing. Australia? Very little. Papua New Guinea? Well… no. Expeditions in Abu Dhabi, Nigeria and Libya were all more successful. The company had looked for oil in the UK for nearly 50 years without a single large discovery. Then in 1964 the United Nations extended countries’ rights over territorial waters.

The following year, BP found natural gas in the southern North Sea, enough to power a medium-sized city.

A far bigger find awaited in Alaska, where in 1968, after a decade of drilling dry wells along the North Slope, BP was on the verge of abandoning its search. The equipment was already packed up and awaiting shipment when a rival consortium made a suspiciously extravagant offer for BP’s Alaska acreage along the edges of Prudhoe Bay. Atlantic Richfield (ARCO) and Humble Oil (Exxon) weren’t telling, but they had struck oil in their own last-chance well in the centre of the Prudhoe Bay structure.

BP got back to the search and in 1969 tapped into its share of the largest oil reservoirs ever found on the North American continent.

Back in the UK, offshore exploration had moved dutifully from the English Channel into the North Sea, although hardly anyone, even within BP, believed oil would be found. “There won’t be oil there,” Sir Eric Drake, BP’s chairman, told Reuters in April 1970. Six months later, crews found the Forties field, which could produce 400,000 barrels of crude oil a day.

Key dates

 

1946

 

The Iraq Petroleum Company begins construction of new pipelines parallel to existing ones.

 

1950

 

Petrol rationing in the UK ended. Refineries in Llandarcy, Wales, and Grangemouth, Scotland, are expanded and construction of a new one, on the Isle of Grain, in the Thames Estuary, England, begins. 

 

1951

 

At the end of April, Iran’s oil industry is nationalised. In June, Anglo-Iranian begins evacuating staff and families from the country and by 5 October everyone has left.

 

1954

 

With no income, Iran accepts a new partnership proposal, including a 25-year contract to manage the country’s oilfields and refineries and a 50-50 profit split between it and a new consortium called Iranian Oil Participants, of which Anglo-Iranian has a 40% share. 

 

In December, the Anglo-Iranian Oil Company changes its name to British Petroleum.

 

1957

 

BP acquires its first concessions in Libya and in 1961 discovers a 6.5 billion-barrel field at Sarir.

 

1958

 

BP forms two joint ventures to sell Middle East crude oil in the US and to begin exploration in Latin America.

 

1960

 

The Organisation of Petroleum Exporting Countries (OPEC) is formed.

 

1964

 

BP enters Malaysia and in 1964 opens its first service stations in newly separated Singapore.

 

1970

 

Output rises to 3.8 million barrels per day – up from 740,000 in 1954 and 1.5 million in 1960. Two-thirds of BP’s refining is carried out in the UK and in mainland Europe.