Discovery of oil History of Bahrain (1783–1971)

the first oli in bahrain discovered in 1932

a survey of geology of gulf region conducted in 1912, believed region s first. in 1914, bahrain s ruler granted british not order exploitation of oil nor grant oil concessions without prior approval. first oil concession given bahrain petroleum company in 1928. oil later discovered in bahrain in 1932, first shipment exported in year. few years later, oil refinery built in sitra process , refine bahrain s 80,000 daily barrels in addition 120,000 barrels dammam in neighboring saudi arabia connected via pipeline. in following decades, oil royalties increased significantly; $16,750 in 1934, $6.25 million in 1954 , $225 million in 1974. discovery , production of oil brought several economical , social changes island.

economically, pearl diving , palm cultivation, backbones of bahraini economy wiped out. pearling boats reduced 2,000 in 1930s, 192 in 1945 , none in 1960s. oil production provided stable work opportunities, not in bahrain, in whole gulf region many bahrainis emigrated to. in addition emigration of pearl tribes reduced number of divers, leading eventual decline of pearl diving. palm cultivation decline shared same reasons, more gradual, dropping sharply in 1960s , after. instead of farming palms, vegetable cultivation emerged , first became luxury venture.