Cseh Valentin szerk.: „70 éve alakult a MAORT” – tanulmányok egy bányavállalat történetéből (2009)

Lajos Srágli: Hungary's Economy, Politics and MAORT

mutilated country which could foster hopes for crude deposits. Although the continuing of exploration was not abandoned, preparations had to be made for prolonged imports. Between 1920 and 1936, our crude oil and petroleum product import increased to more than three times what it used to be.

1,1 This constituted a significant burden on Hungary's foreign trade balance, which was not active to begin with, Several factors played a role in establishing crude oil production of industrial scale in Hungarv. Among them, the internal ones stemmed in part from the economic situation of need that came about after the Trianon peace treat}- was signed, and in part from the conviction of a group of our geologists, according to which crude oil exploration - although costly - could lead to results. Geologists' hopes, however, of finding crude oil deposits within the mockborders of Trianon did not prove true until 1937, and consumption continued to increase in the meantime. At the same time, our refining industry - which was oversized in relation to domestic consumption - was only able to work periodically in the lack of feedstock. Unemployment was around 55-60% in the industry.'

,2 The Minister of Finance, representing the Hungarian treasury, and EUROGASCO's representative signed the concession accord, as well as the agreement on hydrocarbon exploration and mining applicable to the entire territory of Transdanubia 75 years ago, on )une 8, 1933. The "Accord" and "Agreement" to which Parliament's Upper House acquiesced and thus promulgated on June 28,1933 was a correct agreement between equal parties, which took the Hungarian state's interests into consideration eminently. From the economics perspective, suffice it to refer to the fact that all risks and costs of expensive exploration were borne by EUROGASCO and the Hungarian share company to be incorporated, the state, on the other hand, was allotted a significant share of production; in addition, due attention was paid to criteria aimed at supporting Hungarian industry and ameliorating unemployment.'

31 After these documents were adopted by Parliament, EUROGASCO commenced prospecting in a circumspect manner, with scientifically founded methods, and implements that were stateof-the-art at the time. Its first drillings did not end in satisfactory results, but the opportunity for domestic crude oil production was created with the bores drilled down in the outskirts of Budafapuszta in Zala County. 134 From July 28, 1933 until May 31, 1936, EUROGASCO invested an amount corresponding to 300,000 dollars at gold standard into exploration in Hungary

—a sum allocated to prospecting activities on the whole. By the time EUROGASCO reached the prospecting of the Budafapuszta formation by drilling, it went through a lot of difficulty, since it simply was not a company with as strong a capital base as the Hungarian government's information would have had it. American capital was already predominant in the originally English-American capital interest by this time. English owners did not want to engage in further investment in unsuccessful exploration; on the other hand, in order to continue prospecting in Hungarv, EUROGASCO was forced to take out a loan from the Standard Oil Company of New (ersev, headquartered 151 Ásványolaj, 1937. 18-19., 121.; Magvar Statisztikai Szemle, 1934. 5., 182., 1940. 2., 163. 132 »KL 1937., 144.; ADÁMY-NÉMETH 1968 104-106.; The end of 1930s refining industry capacity of 280,000 tons could only be utilised 30-40" it for the lack of feedstock. '" PAPP 1939, 200.; Accord between the Llungarian Roval Minister of Finance and the European Gas and Electric Company (London and New York). M( 'IM Arch.. Gy. 61/6.; Agreement between the Hungarian Roval Minister of Finance and the l,J European Gas and Electric Company (London and New York). MOIM Arch., Civ. 61/7 PAPP 1939,219-222.