EXPANSION OF FOREIGN OPERATIONS BY AMERICAN COMPANIES Notwithstanding the fact that the United States of America has produced nearly 64% of all petroleum produced throughout the world since commercial production began, it has declined in its percentage of the total world production. In 1916 the United States produced 65.8% of the world total ; in 1926, 70•4%; in 1938, 61.3%.
However, the enterprise, initiative, capital and management of American companies during the period have gained for the Ameri can petroleum industry correspondingly important Shares in for eign petroleum production and reserves. By single-company en deavour or through joint and associated enterprise with British and Dutch companies, companies of American domicile, ownership and management—either directly or through the media of subsid iary or affiliated companies—have established and maintained an important position in production, refining, transportation and marketing in the following countries : Argentina, Peru, Ecuador, Venezuela, Colombia, Trinidad, Iraq, Bahrein, Iran, Rumania, Poland.
In this way the United States of America, already producing in excess of 6o% of the world petroleum, is fortified and strength ened by the fact that American companies own, manage, and con trol a large share of the petroleum production in all Latin Ameri can countries producing oil and the British dependency of Trini dad. The combined production of these countries is about 15% of the world production. Likewise, American companies control a large share of the production in Western Asia and the Far East.
There has been a decided trend toward the expansion of Ameri can companies in foreign exploration and exploitation, and the share of foreign production and petroleum reserves owned and managed by American companies has important relationship to military and naval preparedness as well as to the country's eco nomic welfare.