Torkild Rieber
Torkild Rieber | |
|---|---|
| Born | 13 March 1882 Voss, Norway |
| Died | 10 August 1968 (aged 86) Manhattan, New York, U.S. |
| Occupation | Oil industry executive |
| Known for | Chairman of Texaco; involvement in Barco oil concession development; controversial support for fascist regimes in 1930s |
Torkild Rieber (March 13, 1882 – August 10, 1968) was a Norwegian-American leader in the oil industry who rose to become chairman of the Texas Company, commonly known as Texaco.
Originally from Norway, Rieber embarked on a seafaring career at age 15 and by 1904 had become captain of an oil tanker that would later be acquired by Texaco shortly after its establishment. He advanced steadily within the company, attaining the position of chairman in 1935. In 1936, he orchestrated Texaco's acquisition of the Barco oil concession in Colombia and spearheaded the difficult task of developing the isolated oil fields and constructing a pipeline to the Caribbean coast.
During the 1930s, Rieber showed support for European fascist governments and controversially extended oil credit to Francisco Franco’s forces during the Spanish Civil War. He also engaged in oil exchanges involving German tankers, with shipments continuing even after the outbreak of World War II. Following revelations by British intelligence in 1940 about his connections to Nazi Germany, Rieber resigned amid considerable controversy. Nevertheless, he remained influential in the oil sector, playing key roles in negotiations after Iran nationalized British oil assets in 1951 and following the 1953 coup that reinstated the Shah.
Early years
Born in Voss, Norway, Rieber was the son of a dye manufacturing entrepreneur near Bergen. Raised in a devout Lutheran family, he left home at age 15 to serve aboard the Hiawatha, sailing around Cape Horn to San Francisco. After completing maritime training, he spent two years as quartermaster on a barkentine ferrying Indian laborers to plantations in the Caribbean. In 1901, while commanding a French sailing tanker, he sustained injuries during a shipboard altercation which led to his dismissal from command.
Upon recovery, Rieber joined a Texan oil tanker originating from Texaco’s Spindletop facility as mate and was promoted to master by 1904. Texaco acquired his vessel in 1905. After three years at sea, he transitioned ashore to construct a terminal for Texaco in Bayonne, New Jersey. Despite setbacks including two fires, he rapidly reconstructed the facilities and subsequently transferred to Texaco’s corporate headquarters.
In 1909, Rieber married Miriam Marbe; they had two children before her passing in 1938.
During World War I, he served as superintendent of terminals and assistant refinery superintendent at Port Arthur, Texas.
Following Texaco founder Joseph S. Cullinan's departure in 1913 to establish American Republics Corporation, Rieber joined Cullinan as vice president after World War I. The company faced difficulties until Rieber returned to Texaco in 1927 as vice president responsible for exports and marine transportation. He expanded Texaco’s tanker fleet and international market presence. Efforts to collaborate with Anglo-Persian Oil Company (later BP) in Europe were unsuccessful during 1929–30.
In 1935, Rieber ascended to chairman of Texaco while William Starling Sullivant Rodgers held the presidency. He was featured on the cover of Time magazine on May 4, 1936.
Barco oil concession
In the 1930s, although Texaco ranked as the fourth largest American oil company, it depended exclusively on domestic oil production. Seeking supply diversification, Rieber negotiated Texaco’s purchase of the Barco oil concession in Colombia from Gulf Oil in 1936 for $14.55 million and sold half of this stake to Socony-Vacuum (now Mobil).
The pipeline traversed the Cordillera Oriental mountain range and Magdalena River valley before reaching its terminus at the Caribbean port of Coveñas. Engineered for a capacity of 28,000 barrels per day from La Petrólea and Tibú fields, this pipeline represented a significant logistical undertaking with tons of equipment airlifted into remote jungle airstrips. At peak production, approximately 5,000 local workers operated under supervision by around 400 American managers.
Despite encountering obstacles such as local opposition that led to fatalities among company personnel, operations commenced with 62 wells functioning when the pipeline opened in 1939. The crude oil’s notably high gasoline yield (49% through straight-run refining) enhanced its commercial appeal substantially. Total investment for development reached $40 million.
Connections with Spanish and German Fascists
In pursuit of entry into the Far East market, Rieber allied with Standard Oil of California's Bahrain oilfield project through the California-Texas Oil Company; their collaborative subsidiary generated $12 million in revenue in 1939.
Rieber held a strong admiration for the operational efficiency of European fascist regimes and controversially extended oil supplies on credit to Franco’s Nationalist forces during the Spanish Civil War, despite U.S. neutrality regulations. Texaco vessels secretly redirected oil shipments to Spain, which led to a political controversy and a $22,000 penalty following President Roosevelt’s intervention. Rieber persisted in delivering shipments valued at $20 million and also provided intelligence assistance to the Nationalists, earning him Spain’s Knight of the Grand Cross of the Order of Isabella the Catholic.
In 1936, Rieber arranged for tankers to be built at Hamburg’s Deutsche Werft shipyard in exchange for oil supplies. Once World War II commenced, he negotiated with German naval authorities to have the Skandinavia tanker released under a Panamanian flag to continue neutral trade. Despite British embargoes, he sustained oil deliveries to Germany and was described by German intelligence as "absolutely pro-German."
In 1940, Rieber met with Hermann Göring and carried a message from Adolf Hitler inviting President Roosevelt to endorse a Germany-led European Union initiative; Roosevelt declined the proposal. Additionally, Rieber interacted with German agent Gerhardt Alois Westrick, who advocated for trade relations with Nazi Germany at prominent gatherings attended by American business leaders including Rieber himself. These connections provoked public outrage after British intelligence disclosures.
Facing mounting negative attention over Rieber’s pro-Nazi associations jeopardizing Texaco’s interests, the company’s board compelled his resignation in August 1940. Life Magazine portrayed him in a somewhat sympathetic light but acknowledged that his contentious affiliations had undermined his position.
Subsequent Career
Following his departure from Texaco, Rieber assumed the presidency of the independent Barber Oil Company.
In March 1951, Iran's parliament nationalized the Anglo-Persian Oil Company (APOC), precipitating the Abadan Crisis. APOC withdrew its personnel, and under British diplomatic pressure, multiple nations imposed embargoes on Iranian oil exports. Iran sought assistance from the World Bank to resolve the conflict, proposing that the bank temporarily oversee its oil industry operations. The World Bank appointed Rieber to collaborate with Hector Prud'homme in evaluating Iranian oil facilities. They arrived in Iran on December 31, 1951, met with Prime Minister Mohammad Mosaddegh, and conducted an inspection of the Abadan refinery.
By February 1952, Rieber participated in a World Bank delegation negotiating to resume oil production contingent upon agreements regarding British ownership rights. A significant challenge was Iran’s refusal to readmit British technicians, which complicated operations due to insufficient qualified personnel from other countries. The primary sticking point remained British demands concerning revenue sharing. After the 1953 coup d’état supported by Britain and the U.S., which reinstated Shah Mohammad Reza Pahlavi, Rieber advised the new administration and facilitated negotiations in 1954 involving a consortium including Standard Oil of New Jersey, Royal Dutch Shell, and APOC. His involvement played a role in reaching the final agreement.
In 1963, Rieber attended Time magazine’s fortieth anniversary celebration hosted by publisher Henry Luce at New York’s Waldorf Astoria, joining other distinguished individuals who had appeared on the magazine’s cover over time. He passed away in Manhattan on August 10, 1968, at age 86.