Before the discovery of oil On January 15, 1902, Ibn Saud took Riyadh from the Rashid tribe. In 1913, his forces captured the province of al-Hasa from the Ottoman Turks. In 1922, he completed his conquest of the Nejd, and in 1925, he conquered the Hijaz. In 1932, the Kingdom of Saudi Arabia was proclaimed with Ibn Saud as king. Without stability in the region, the search for oil would have been difficult, as evidenced by early oil exploration in neighbouring countries such as Yemen and Oman. Prior to 1938, there were three main factors that triggered the search for oil in Arabia: The discovery of oil by the Anglo-Persian Oil Company at Masjid-i-Sulaiman in the mountains of north-western Persia in 1908; but the consensus of geological opinion at the time was that there was no oil on the Arabian peninsula, although there were rumours of an oil seepage at Qatif on the eastern seaboard of Al-Ahsa, the eastern province of Arabia. The demand for oil during World War I. It became obvious that oil was going to be a crucial resource in warfare for the foreseeable future. Examples that proved this were “General Gallieni’s commandeering of the Paris taxi fleet to ferry soldiers to the front. This happened when the city seemed about to fall”.Singer, Clifford E. Energy and International War: from Babylon to Baghdad and beyond. Vol. 6. Singapore: World Scientific, 2008. Print. Energy and Resource Economics. In addition to this, Germany’s shortage of oil supplies hindered their ability to produce aircraft, automobiles, and engines. The allies took advantage of this by producing thousands of vehicles to aid their war effort. The onset of the Great Depression. Prior to the depression, a major source of income for the ruler of Hijaz was the taxes paid by pilgrims on their way to the holy cities. After the depression hit, the number of pilgrimages per year fell from 100,000 to below 40,000. This hurt their economy greatly and they needed to find alternate sources of income. This caused Ibn Saud to get serious about the search for oil. Initial search In 1922, Ibn Saud met a New Zealand mining engineer named Major Frank Holmes. During World War I, Holmes had been to Gallipoli and then Ethiopia, where he first heard rumours of the oil seeps of the Persian Gulf region. He was convinced that much oil would be found throughout the region. After the war, Holmes helped to set up Eastern and General Syndicate Ltd in order, among other things, to seek oil concessions in the region. In 1925, Holmes signed a concession with the sheikh of Bahrain, allowing him to search for oil there. He then proceeded to the United States to find an oil company that might be interested in taking on the concession. He found help from Gulf Oil. In 1927, Gulf Oil took control of the concessions that Holmes made years ago. But Gulf Oil was a partner in the Iraq Petroleum Company, which was jointly owned by Royal Dutch/Shell, Anglo-Persian, the Compagnie Française des Pétroles, and "the Near East Development Company, representing the interests of the American companies  . The partners had signed up to the “Red Line Agreement”, which meant that Gulf Oil was precluded from taking up the Bahrain concession without the consent of the other partners; and they declined. Despite a promising survey in Bahrain, Gulf Oil was forced to transfer its interest to another company, Standard Oil of California (SOCAL), which was not a bound by the Red Line Agreement.
 Initial search In 1922, Ibn Saud met a New Zealand mining engineer named Major Frank Holmes. During World War I, Holmes had been to Gallipoli and then Ethiopia, where he first heard rumours of the oil seeps of the Persian Gulf region. He was convinced that much oil would be found throughout the region. After the war, Holmes helped to set up Eastern and General Syndicate Ltd in order, among other things, to seek oil concessions in the region. In 1925, Holmes signed a concession with the sheikh of Bahrain, allowing him to search for oil there. He then proceeded to the United States to find an oil company that might be interested in taking on the concession. He found help from Gulf Oil. In 1927, Gulf Oil took control of the concessions that Holmes made years ago. But Gulf Oil was a partner in the Iraq Petroleum Company, which was jointly owned by Royal Dutch/Shell, Anglo-Persian, the Compagnie Française des Pétroles, and "the Near East Development Company, representing the interests of the American companies .Singer, Clifford E. Energy and International War: from Babylon to Baghdad and beyond. Vol. 6. Singapore: World Scientific, 2008. Print. Energy and Resource Economics . The partners had signed up to the “Red Line Agreement”, which meant that Gulf Oil was precluded from taking up the Bahrain concession without the consent of the other partners; and they declined. Despite a promising survey in Bahrain, Gulf Oil was forced to transfer its interest to another company, Standard Oil of California (SOCAL), which was not a bound by the Red Line Agreement.
D
Before the discovery of oil On January 15, 1902, Ibn Saud took Riyadh from the Rashid tribe. In 1913, his forces captured the province of al-Hasa from the Ottoman Turks. In 1922, he completed his conquest of the Nejd, and in 1925, he conquered the Hijaz. In 1932, the Kingdom of Saudi Arabia was proclaimed with Ibn Saud as king. Without stability in the region, the search for oil would have been difficult, as evidenced by early oil exploration in neighbouring countries such as Yemen and Oman.
D
Prior to 1938, there were three main factors that triggered the search for oil in Arabia: The discovery of oil by the Anglo-Persian Oil Company at Masjid-i-Sulaiman in the mountains of north-western Persia in 1908; but the consensus of geological opinion at the time was that there was no oil on the Arabian peninsula, although there were rumours of an oil seepage at Qatif on the eastern seaboard of Al-Ahsa, the eastern province of Arabia. The demand for oil during World War I. It became obvious that oil was going to be a crucial resource in warfare for the foreseeable future. Examples that proved this were “General Gallieni’s commandeering of the Paris taxi fleet to ferry soldiers to the front. This happened when the city seemed about to fall”.Singer, Clifford E. Energy and International War: from Babylon to Baghdad and beyond. Vol. 6. Singapore: World Scientific, 2008. Print. Energy and Resource Economics. In addition to this, Germany’s shortage of oil supplies hindered their ability to produce aircraft, automobiles, and engines. The allies took advantage of this by producing thousands of vehicles to aid their war effort. The onset of the Great Depression. Prior to the depression, a major source of income for the ruler of Hijaz was the taxes paid by pilgrims on their way to the holy cities. After the depression hit, the number of pilgrimages per year fell from 100,000 to below 40,000. This hurt their economy greatly and they needed to find alternate sources of income. This caused Ibn Saud to get serious about the search for oil.
A
.Singer, Clifford E. Energy and International War: from Babylon to Baghdad and beyond. Vol. 6. Singapore: World Scientific, 2008. Print. Energy and Resource Economics