- Arbusto Energy
Arbusto Energy (sometimes referred to as Arbusto Oil) ["" is a Spanish and Portuguese word translating variously to "bush" or "shrub".] was a
petroleum andenergy company formed in Midland,Texas , in1977 , by future US PresidentGeorge W. Bush and a group of investors which includedDorothy Bush ,Lewis Lehrman ,William Henry Draper III ,Bill Gammell , andJames R. Bath . The company's chief financial officer wasK. Michael Conaway , now aUnited States Congressman fromTexas .It was later revealed that Bath made an investment of $50,000 while representing
Salem bin Laden of theSaudi Binladin Group . This fact became controversial after theSeptember 11, 2001 attacks due to Salem bin Laden being an older,half-brother ofOsama bin Laden , who planned and financed the attacks. Upon Salem bin Laden's death in a1988 airplane crash, in Texas, his interest in Arbusto (along with other Binladin Group assets), passed toKhalid bin Mahfouz .In
1982 , Arbusto became known as "Bush Exploration", a year afterGeorge H. W. Bush became Vice President. A friend of the Bush family,Philip Uzielli , invested $1 million in1982 in exchange for a 10% stake in the company, at a time when the whole company was valued at less than $400,000. As it neared financial collapse again in September1984 , Bush Exploration merged withSpectrum 7 Energy Corp., a company owned by William DeWitt andMercer Reynolds . Bush became Chairman and CEO of Spectrum 7.In
1985 Spectrum 7 reported a net loss of $1.5 million and was bought in1986 for $2.2 million byHarken Energy , with Bush joining the Harken board of directors and finance audit committee.In
1987 the Saudi investorAbdullah Taha Bakhsh bought most ofUnion Bank of Switzerland 's shares in Harken becoming its third largest investor owning 17% of the company. He was represented on the board byTalat M. Othman . Another investor was Ghaith R. Pharaon, a partner of Bakhsh's, who would later be involved in theBank of Credit and Commerce International scandal, and is currently the target of an international dragnet.In January
1990 with the company in the same state as its previous incarnations, it was awarded a contract to drill for crude oil off the coast ofBahrain , a move that shocked industry insiders as Harken had no previous experience outside of the US or of drilling offshore.In June
1990 Bush sold more than half of his shares in Harken to a Los Angeles broker named Ralph D. Smith. One week after the sale Harken announced an overall loss of $23.2 million triggering an investigation by theU.S. Securities and Exchange Commission into the sale.Further reading
* Beaty, Jonathan & Gwynne, S.C. (1993). "The Outlaw Bank: A Wild Ride into the Secret Heart of BCCI". Random House Inc. ISBN 0-679-41384-7.
* Hatfield, J. H. (2002). "Fortunate Son: George W. Bush and the Making of an American President" (3rd ed.). Soft Skull Press. ISBN 1-887128-84-0.References
External links
* [http://www.washingtonpost.com/wp-srv/politics/campaigns/wh2000/stories/bush073099.htm Bush Name Helps Fuel Oil Dealings] - a
Washington Post article discussing Bush's oil ventures
* [http://harpers.org/archive/2000/02/0063185 The George W. Bush Success Story] - aHarper's Magazine article on the investors in Bush's companies
* [http://www.michaelmoore.com/_media/images/documents/salem-bath-trust-agreement.jpgTrust Agreement between James R. Bath and Salem Bin Laden]
* [http://www.eia.doe.gov/emeu/steo/pub/fsheets/petroleumprices.xls DOE Petroleum Price Chart (Sheet# CRUDE(T))]
Wikimedia Foundation. 2010.