The King of Oil summary

The Early Years of Marc Rich

In The King of Oil by Daniel Ammann, we are introduced to Marc Rich, a man who revolutionized the oil industry. The book begins with Rich's early life in Belgium, where he was born to Jewish parents who fled Nazi-occupied Europe. His family moved to the United States, and Rich attended New York University, where he studied business and finance.

After graduating, Rich began his career at Philipp Brothers, a commodities trading firm. He quickly made a name for himself, and by the age of 30, he was running the company's Madrid office. It was here that he began to develop his unique approach to trading, which would later make him one of the richest and most controversial figures in the industry.

The Birth of the Spot Market

Rich's big break came in the early 1970s when he moved to Switzerland and founded his own company, Marc Rich & Co. AG. It was here that he pioneered the concept of the spot market, allowing oil to be traded immediately rather than through long-term contracts. This innovation gave him a significant advantage over his competitors and made him a fortune.

Rich's company quickly became one of the largest and most influential in the industry, and he began to make deals with some of the world's most controversial regimes, including Iran, South Africa, and Cuba. These deals, while highly profitable, would later come back to haunt him.

Legal Troubles and Exile

In 1983, Rich was indicted in the United States on charges of tax evasion, fraud, and illegal trading with Iran. Rather than face trial, he fled to Switzerland, which does not have an extradition treaty with the US. This move effectively made him a fugitive, and he remained in exile for the rest of his life.

Despite his legal troubles, Rich continued to run his business from Switzerland, and his company continued to thrive. He also became known for his philanthropy, donating large sums of money to various causes, including cancer research and Jewish charities.

The Controversial Pardon

In 2001, on his last day in office, President Bill Clinton controversially pardoned Rich. The decision sparked outrage and accusations of political favoritism, as Rich's ex-wife had made substantial donations to the Democratic Party. The pardon did, however, allow Rich to travel freely without fear of extradition.

Rich continued to run his business until his death in 2013. Despite his controversial reputation, he was undeniably one of the most influential figures in the oil industry, and his legacy continues to be felt today. In The King of Oil, Daniel Ammann provides a fascinating and in-depth look at the life of this enigmatic and polarizing figure.