Qatar
/ History / The Early Twentieth Century and The Discovery of Oil
The
early part of the twentieth century saw the rapid rise to power
of the Wahhabi movement in the Arabian Peninsula. Ibn Saud, leader
of this movement came to conquer most of the Arabian peninsula
and by 1932 he was proclaimed King of Saudi Arabia.
Although the Gulf States were never directly invaded by his forces,
the influence of the Wahhabis remained strong, and Abdulla Al-Thani
was constantly aware of the potential threat to his security from
the new Kingdom of Saudi Arabia.
British promises of protection never materialised, and the Qataris
eventually paid a tribute to the Al Sauds to preserve their sovereignty
and ward against invasion.
In the 1930's, however, the picture changed dramatically and irrevocably
with the discovery of oil The first strike in Bahrain in 1932
by Socal (an American consortium) led to a rush of interest by
the British, alarmed that the Americans might come to dominate
this new found source of wealth in the Gulf. An option had already
been granted to the British by Qatar as early as 1926, athough
the company (the Anglo Persian Oil Company - APOC), had chosen
not to exploit it further. The ruler, Abdulla, used this new-found
enthusiasm of the British in the 1930's to gain increased commitment
from them with regard to the safety of Qatar, and the guarantee
of succession for his son and heir, Hamad. In 1935 the first oil
concession was granted to Petroleum Development Qatar Limited
(PDL) - a newly created subsidiary of APOC, for a period of 35
years. In 1939, oil first flowed from a well near Zakrit on the
west coast of the country. Exploitation was delayed due to the
Second World War, and it was not until 1949 that production was
undertaken in a major way. In 1963 the Qatar Petroleum Company
was founded. Concessions were eventually granted to a number of
other companies, notably Shell.
Offshore production began in 1964 and by 1976 the newly formed
State of Qatar had gained control of all oil production within
the country and offshore.
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