The two weeks of Achnacarry talks resulted in the 17-day “As Is” agreement, also known as the Pool Association, which was agreed but not signed. Under the agreement, each company was allocated a quota in different markets, but the agreement excluded the US domestic market in order to avoid any breach of US anti-dominant law. In addition to quotas, companies have agreed to reduce costs, share facilities, and be cautious in building new refineries and other facilities. A few months later, industry leaders agreed to also control production. This is how the agreement essentially constituted an international oil cartel! Cartels usually control or set prices, markets and production. However, the deal collapsed when companies again attacked other`s markets. The Soviet Union, absent from the agreement, had to be consulted for any chance of success, given that the Soviet company Russian Oil Products was the 4th largest importer in the United Kingdom. Shortly after Achnacarry, 17 U.S. companies created the Export Petroleum Association under the Webb-Pomerene Act of 1918, which allowed U.S. companies to do overseas what antitrust law would not allow them to do in the United States.
Differences of opinion on the distribution of production between US and European companies led to the failure of the attempted “cartel” on US oil exports, which further undermined the “As Is” agreement. In addition, there was too much production outside the “As Is” framework to be effective, and the Achnacarry agreement and the attempted “cartel” on international oil production failed. The Baku-Tbilisi-Ceyhan gas pipeline was built to transport crude oil and the Baku-Tbilisi-Erzurum gas pipeline was built to carry natural gas from the western side (Azerbaijani sector) of the Caspian Sea to the Mediterranean, bypassing Russian gas pipelines and thus Russian control. After the construction of the pipelines, the United States and the European Union proposed to extend them to the east (Kazakhstan and Turkmenistan) of the Caspian Sea through the Trans-Caspian Oil Pipeline Project and the Transcapian Pipeline under the Caspian Sea. In 2007, Russia signed agreements with Turkmenistan and Kazakhstan to connect their oil and gas fields to the Russian gas pipeline system and effectively kill the underwater route. Achnacarry Castle had been leased in August 1928 by Sir John Cadman, the boss of the Anglo-Persian Oil Company (APOC), the company that was to become BP. The agreement was known as the Red Line Agreement because none of the participants were safe beyond the pre-war borders of the Ottoman Empire during negotiations between TPC members. Therefore, at one of the last meetings, Gulbenkian drew the memory boundaries on a map of the Middle East with a red pencil.
In fact, the issue had been resolved long before, during negotiations between the British and French Foreign Ministries. Despite this, the name hung on. One such region was Persia. Shah Reza Pahlavi of Persia, who had crowned himself the founder of the new Pahlavi dynasty in 1925, was firm with the modernization of Persia and was outraged by the decline in royalties with the depression. He had also become suspicious of everyone, and this was even reproached by his closest and most loyal supporters. .