1 - Oil Discovery and the Formation of a New Iranian Society

Summary

Upon the discovery of oil in 1908, the oil industry in Iran underwent a swift and extensive expansion, precipitating rapid industrialisation and significant demographic transformations that fundamentally redefined social relations, societal structures, and governance both locally and nationally. Central to these transformative processes was the development of oil towns, which emerged as crucibles of change, profoundly reconfiguring traditional lifestyles, and labour practices. This chapter delves into the complexities of managing oil production in areas not wholly subsumed under the aegis of the Iranian central government. It highlights the significant challenges encountered in cultivating a stable workforce and inculcating a culture imbued with principles of labour discipline, orderliness, and punctuality. These shifts presented formidable obstacles, especially for tribesmen traditionally engaged in nomadic pursuits, who found themselves compelled to transition to regimented forms of employment. Further, this discussion extends to the strategic recruitment and deployment of Indian workers, initially engaged for security purposes, whose roles evolved to encompass skilled, semi-skilled, and clerical positions, ultimately cementing their place as a permanent fixture within the industry. This narrative underscores the profound and multifarious impacts of the oil industry on the social and economic terrains of Iran.