Rockefeller’s interest in Russia stemmed from the discovery of oil near the Caspian Sea town of Baku, in Azerbaijan. The oil field was the largest known oil strike in the world. It was controlled entirely by the Swedish munitions manufacturers Ludvig and Robert Nobel and Tzar Nicholas II’s banker, Baron Alphonse Rothschild.
The Nobel brothers of Sweden launched the Baku oil boom in 1873. During a trip to Baku, Robert Nobel realized the commercial possibilities of the oil wells in this area. Ludvig was a successful engineer and industrialist with his engineering factory in St Petersburg and realised that there were not the necessary knowledge of technology and materials in Russia. He had the backing of his brother Alfred known for his peace prize. Alfred had obtained the patent for dynamite, exploiting the principle that if a small amount of explosive could be rapidly exploded, the shock and the heat generated will communicate the explosion to the rest of the material.
This area of Azerbaijan has been famed for its rich oil resources since ancient times. The “liquid fire” with which Constantinople drove the Arab besiegers from its walls in the seventh century consisted largely of oil that bubbled to the surface unaided along the coasts of the Black Sea and the Caspian. The Persians called the area the “Land of Fire,” where priests lit their temples with oil from these natural sources.
Oil blowouts made up the main portion of all oil production in the early days although this was a very uneconomical and environmentally harmful process. The production engineering level of the crude oil industry in Baku was astoundingly low. The transport of crude oil to the harbor took place in barrels, pulled by donkeys. In America oil producers were far ahead with pipelines, pumps and knowledge of the nature of the oil.
This growth of oil production in Baku was based upon high quality crude oil, cheap available manpower, and the unusually quick and effective development and implementation of technical improvements. The Nobel Brothers put in a pipeline from the oil fields to the shore, and sent out oil tankers.
Brothers Nobel oil company, was headed by Ludvig and the three Nobel brothers were the main shareholders. Ludvig organized the entire system for refining, transporting by pipeline, boat and train, storage and selling and made a number of technical and commercial innovations.
Among these were pipelines for the transport of oil from the oil fields to the shore, and oil tankers built in sections in Sweden and assembled on the Caspian Sea. Nobel was the first oil company to have permanent geologists. He had good relations with his employees and introduced profit sharing and worked actively to improve working conditions in his factories.
Oil companies owned by the Rothschild family entered the scene in Baku followed by Rockefeller’s gigantic Standard Oil Company. This heated competition for control of the world’s top producing region. Blowout production decreased as the equipment was improved. By 1884 Rothschild and Nobel were pumping as much oil from the Baku Oil Fields as Rockefeller was from all of his holdings in the United States. By 1901, Baku produced more than half of the world’s oil.
Rockefeller and Rothschild were competing as the world’s foremost oil and banking barons. Rockefeller was determined to do in Russia what he had succeeded in doing in the United States cornering the refining and distribution of oil. But the two competitors finally realized that competition was not a good thing. The more oil wells they drilled, the more oil was produced, the more the price of oil per barrel fell.
It was decided that the world’s markets would geographically be carved up, with the two barons, Rockefeller and Rothschild, each having their separate, well-defined shares. Moreover, limits would be put on oil produced globally so as to keep the market price as high as possible. Under this arrangement, both Rothschild and Rockefeller would benefit. Of course, all other competition would be squelched, driven out of business, including the Nobel Oil Company in Baku.
The Russian Finance Minister knew of Rockefeller’s reputation for buying politicians and destroying competition, and convinced the Tzar to keep Standard Oil and Rockefeller out of Russia. Rockefeller knew the only way he was going to get in was to depose Tzar Nicholas II. As a solution the Rockefeller-Rothschild cartel funded the Bolshevik Communist revolution of 1917 to get control of the Baku oil. Rockefeller’s puppets, Lenin, Trotsky, and Stalin, soon reigned over the vast Soviet Russia empire.
In 1918 British forces captured the Baku oil fields. The Allies held the oil fields for two years. When US troops left the Baku oil fields, the 11th Red Army overwhelmed the weakened British forces that were still holding Baku, and took the oil fields back, ending World War I, and creating the reason for the Iron Curtain which would divide East and West for the next 68 years.
Lenin, following orders from the Rockefeller-Rothschild cartel, seized power in Baku and Branobel’s oil business in Azerbaijan was nationalized. Hundreds of thousands of residents were slaughtered, especially the families of the oil company executives, engineers, and chief workers. Their luxurious mansions and homes were plundered, wives and children raped, tortured and murdered. The oil derricks and facilities of Baku were set on fire—torched.
Whoosh! Instantly, one of the world’s top oil producing regions was no more. The Nobel brothers fled for their lives back to Sweden, selling almost half of their shares in Branobel’s to Standard Oil , so they could have the same property rights. Naturally, the Baku oil assets of Rothschild and Rockefeller were lost as well, but this was according to plan. That plan dictated that Russia would, during the Communist era, not be a world player in oil.
This closing of Baku immediately resulted in an astronomical increase in the global price of oil. Rockefeller and Rothschild were well compensated for the temporary loss of their Baku assets. “Creative Destruction” had brought fabulous riches to both Rothschild and Rockefeller.