Table of Contents
Introduction.
Chapter 1: Research
Objectives.
Chapter 2: The Beginning
of LAGO..
Chapter 3: Education.
Chapter 4: Building of a
New Community.
Chapter 5: World War II
Chapter 6: Economy
Growth on the Whole Island.
Chapter 7: The Impact on
the Culture.
Chapter 8: The
Developments After the Closing of LAGO.
Conclusion.
References.
Introduction
In this report I will be addressing the
envelopment and development that took place during the LAGO Period,
which is also called the Black Gold Period. During this period, many
changes went on in Aruba. Moreover, these changes influenced the
culture and the living standards of locals on the island. The
economy increased a lot since the opening of the refinery, which
provided an opportunity for locals to have better living conditions.
However, the question remains whether
the starting of the refinery in Aruba brought mostly envelopments or
developments.
Chapter 1: Research Objectives
This report will elaborate the job
opportunities that were offered to locals, the education provided,
and the immigration that came to Aruba. It will also elaborate on
the changes that were brought through the building of the community
at Seroe Colorado and the effect on the economy that the refinery
brought to Aruba. The impact that the refinery had on the culture is
an issue that will also be addressed.
The report will cover issues from the
time the unanimous decision was made to start a refinery on the
island until the closing of it. I will show all the innovations that
took place throughout the period of LAGO and the effect they had on
the community, whether they are development or envelopment, or
whether they were envelopment but eventually became development.
Chapter 2: The Beginning of LAGO
In 1924, the LAGO Petroleum
Corporation, a producing company in Lake Maracaibo, sent Captain
Robert Rodger and Mr. J. O. Boyd to find the most suitable terminal
either in Curacao, Paraguana, Aruba, or any other place that
would offer possibilities for future expansion.
After investigating some places, they
came to a unanimous decision that San Nicolas Bay in Aruba was the
best place. In October 1924, Pan American Petroleum and Transport
Company officially decided in building the refinery on the island of
Aruba. LAGO Oil and Transport Co. Ltd was the first refinery on the
island. The name LAGO stands for the Lake Maracaibo in Venezuela,
because the entire operation on the island depended on the fleet
little takers that carried the crude from Lake Maracaibo through the
shallow channel of Aruba. (http://www.lago-colony.com/index.htm)
The San Nicolas harbor officially
opened in November 1927. However, soon after the building of the
transshipment in San Nicolas, Standard Oil of Indiana started
purchasing stock interest in Pan America Petroleum, which after a
while was the largest stock holder in it. It is because of this that
they provided all the technical and supervisory personnel, and they
brought their people from their own state side facilities.
The construction started in May 1928
and by January 1, 1929 the first refinery units were in operation.
However, after some issues that Standard Oil of Indiana had to deal
with and the possibility of import tax on foreign crude imported
into the United States, they decided to sell the refinery. Standard
Oil of New Jersey was the purchaser. (Aruba Esso News, 1969)
It was envelopment from the moment
the decision was made to start a refinery on the island, because it
was something that was made from the outside to bring into the
inside. The effect was that it would be economically shaped from the
outside. However, from the moment it was brought on the island, the
locals saw the chance of development. The refinery became part of
the island and in cooperation of it the island developed in a way
that made history. (http://www.lago-colony.com/index.htm)
The opening of the refinery provided
many job opportunities for locals. It offered the possibility for
creating a better life, which was a development. They applied for
jobs at the refinery, because of the benefits that they saw in it.
Moreover, they realized the chance to actually afford having a
family, and to provide education for their children at home. Before
the refinery, Aruba was known as a very poor island. The Yellow
Period, which was the time that gold was found on the island, did
not last long and poverty came back quickly. The increase in the
economy was a matter of importance for the locals, and many saw the
opportunity of a refinery as a sign for a chance of better living
standards.
Chapter 3: Education
A large percentage of workers were
from outside the Caribbean area, and the majority of them filled
most of the skilled positions because of their language and
experience, giving the locals and other islanders the unskilled
positions. This matter brought resentment by the locals and they
started to manifest. It was because of this opposition that LAGO
started with educational programs, in order to improve the knowledge
and experience of the locals. In 1935, LAGO started its vocational
training, which was called the Apprentice Training Program. In later
years it became the LAGO Vocational School (LVS), which was a four
year curriculum. It provided classes and on-the-side training for
carpenters, pipe fitters, tinsmiths, and operating personnel. It was
discontinued in 1957, still 954 Aruban boys graduated from the LVS,
giving them many positions at Lago ranging from supervisors to
well-qualified tradesmen. After that, three programs were developed
to help the locals. The first one was formed that same year, which
was the LAGO Scholarship Foundation. The second one was the LAGO
Educational Assistance Program (LEAP) in 1962, and the last one was
the LAGO Special Educational Program for Outstanding Students formed
in 1966. Through these three programs LAGO helped numerous locals to
graduate from colleges or universities in the U.S. and The
Netherlands. (Aruba Esso News, 1969)
All the education that was offered by
LAGO was development in Aruba. It was not an obligation to take part
in these programs, but the locals saw the opportunity to improve and
to develop. They took the opportunity and made enhancements in their
lives. With the education they received they knew that they would
grow and become better and wiser people.
(http://www.lago-colony.com/index.htm)
Chapter 4: Building of a New Community
In 1938, a hospital was built north
east of the refinery area, but later on it was moved to a hill near
Seroe Colorado Point. It was a modern three-story wing with a
capacity of 120 beds. It was inaugurated in 1953. The modernization
of the building was envelopment, since Aruba was a traditional
island. However, it provided locals who worked at the refinery
together with their families the opportunity for a better health
care. With more that 150000 medical assistances, locals became more
aware of their health. The majority of nurses were from Aruba, and
the doctors from The Netherlands and United States. The hospital was
an external factor that ones it came on the island it became an
internal factor. The idea was not originally from Aruba, it was part
of LAGO. However, once it was brought in, people accepted it and it
immediately became a development. The locals saw the positive things
that it had for them and took it as something of which they would
benefit from. (http://www.lago-colony.com/index.htm)
The refinery also started with a Home
Building Foundation in 1939. However, it did bring both envelopment
and development. It was development, because a large amount of
houses were built for the workers of the refinery. Over 4000
employees obtained a house through this foundation, scattered all
over the island.
In April 29, 1953 the Lago Sport Park
was inaugurated. It was a sport park that was built for the
community in San Nicolas and Aruba itself.
Yet it is also envelopment because of
the community that was built in Seroe Colorado, which was called the
Colony. It was applied to only the immigrants who came to work at
the refinery, especially, if not only Americans. Several bungalows
and houses were built. Bachelor quarters, dining halls, clubhouses,
and sports complex were also constructed. A Protestant church was
also built in the Colony for the ones living there. The Colony
became something that was completely non-traditional on the island.
Furthermore locals had limited access to this area. To enter the
Colony, locals were required to have a LAGO pass, and that was
basically attained only for the workers of the refinery. That area
of the island became a separate part of Aruba, with people having
their own culture, beliefs, norms, and values.
(http://www.lago-colony.com/index.htm)
Chapter 5: World War II
Another factor that played a huge
role in the history of Aruba was the World War II. Soon after the
war broke out in Europe on September 3, 1939, LAGO started supplying
petroleum products for the Allies. However, when German troops moved
into The Netherlands and Belgium, The Netherlands Antilles were
declared in state of war with Germany. In September 1940, the
British Queen sent her own Cameron Highlanders to protect the island
and the refinery in case German troops attack. They remained in
Aruba until February 13, 1942 and went back to Britain. Meanwhile
some ships had been sunk by U-boats in the Caribbean, and soon the
U.S. Army Air Forces established squadrons of bombers and fighters
in Aruba. (http://www.lago-colony.com/index.htm)
On February 16, 1942, at 1:21 in the
morning Aruba saw the real war action, the German U-boat 156
attacked the island. The explosion hit the lake tanker “Pedernales”
anchored off the reef outside the San Nicolas Harbor. After a few
minutes the lake tanker “Oranjestad” was hit. That same night lake
tankers “Tia Juana” and “San Nicolas” were sunk, with numerous loss
of lives. The aim afterwards was to destroy the largest refinery in
the world. However, there was an explosion on the deck of the U-boat
and the dick gunner failed to remove the plug from the end of the
cannon barrel, which made it impossible to attack the refinery.
After this, the refinery and the rest of Aruba stayed for several
days in complete darkness. (Aruba Esso News, 1969)
Consequently, there was much
destruction at the refinery. Therefore, huge projects came to the
plan in order to repair all the damage that had been caused, an
example was the Harbor Reconstruction Program was formed. From
these programs, a two-story High School was built, one of the Labs
and the General Office Building were also extended. It was a period
of consolidation and improvements for the refinery. LAGO had over
7000 employees at that time in order to achieve the projected goals.
Since the refinery was part of the
Standard Oil of New Jersey, and in the beginning of the war U.S. was
not part of the World War II yet, they supplied oil to the Allies,
which in a way is envelopment. It was a decision that was made by
the Americans to help the others. After the attack, when the
construction started to take place was development, the refinery was
getting larger, and more people were recruited. Not only did they
repair the damage that the U-boat left behind, but they extended the
refinery, as mentioned above. (http://www.lago-colony.com/index.htm)
Chapter 6: Economic Growth on the Whole Island
Another aspect in the history of the
refinery is that not only did the refinery succeeded economically,
but also other companies around the island. One of the companies for
example was the air and ship transport. The air transport, which was
formerly called Dakota Vliegtuig Maatschappij, became a successful
income for the island. Since there was a large amount of travelers
coming to the island to work or to do business at the refinery,
revenue of air transport increased dramatically. As for the Ship
Transport, the Paardenbaai, which is the harbor of Oranjestad, was
everyday full with ships coming from Venezuela, Colombia, Santo
Domingo, Suriname and so forth. They would bring in fruits and
vegetables to sell on the island. This is where they started with
the selling of fruits and vegetables along the streets of Aruba.
(Dr. J. Hartog, 1961)
This severe increase in the economy
of Aruba provided the opportunity for the island to develop and
become a stronger community. Aruba became part of the world through
all the businesses that took place because of the refinery. The
island developed dramatically, people started to focus on the
infrastructure for instance constructing roads, building houses, and
companies started to bloom. Subsequently, opportunities for
employment were massive and everyone saw the chance for a better
living standard. (Dr. J. Hartog, 1961)
Chapter 7: The Impact on the Culture
The culture on the island was shaped
a good deal after the opening of the refinery. Not only did it
change the ways of living, but the norms and values were also
refined. The population increased from approximately 15,000
habitants to 54,000 in a short period of time. There were about 56
different nationalities who immigrated to the island to work at the
refinery. This means that the island consisted of a mixture of about
56 different cultures, beliefs, and way of living. (Dr. J. Hartog,
1961)
A clear example of the impact the
refinery had on the culture is the religion and beliefs of many. In
the beginning, Aruba only knew two religions which were the Roman
Catholic and the Protestant. However, after all the immigration that
went on during that period, different religions and beliefs came to
existence. There were numerous churches of different religion that
were built, and people started to be more open-minded about other
beliefs. Many locals were curious about others and wanted to explore
more on the cultures that were brought in.
In the early years, there were just a
few cars, and the majority of people used donkeys to take them
wherever they wanted. During the period of LAGO, the donkeys were
becoming less common and the numbers of cars were increasing. The
people on the island started to live in a more modern way.
This was an outside factor that once
it was brought in became part of the island. It was a development
because it was something that contributed to the transportation of
the locals.
The immigrants brought with them
their cultures and ways of living, influencing the one of the island
itself. This is a form of envelopment, because they brought the
outside in the island and the locals started to change their way of
thinking. It made them see the world in a broader way. The culture
of Aruba was persuaded a lot by the immigrants, locals started to
mimic the culture of others. Consequently many changes came within
our own culture and the way of living. The locals started to compare
themselves with others, took what they thought was right and added
it in the culture of Aruba. The traditions were kept, yet they added
more to it. (Dr. J. Hartog, 1961)
Chapter 8: The Developments After the Closing of LAGO
As a result of the reduced worldwide
demand for oil and an oversupply of refining capacity, Standard Oil
Company of New Jersey decided to close its facilities on March 31,
1985.
The closing of the refinery brought
an economic setback for the island. There was a large amount of
unemployment, causing many people to go abroad to try to make a
living. There was an urge for a new source of income, and since
Aruba gained some fame due to the refinery, tourism became the focus
for the recovery of the impact.
In addition, Aruba had the strength
to stand on its two feet, which led for the island to fight for its
Status Aparte. On January 1, 1986, Aruba attained its Status Aparte
from The Netherlands. The Dutch Kingdom consisted then of The
Netherlands, Antilles, and Aruba. This was one of the changes that
completely shaped the history of Aruba, because it was a sign of the
progress on the island. The success that the refinery left on the
island made it possible for the people to have more confidence and
to be more independent and Aruba was proud of the achievement. This
was an indication of how the island was developing and was able to
do it in a more independent way.
In 1991, the refinery opened under
the Coastal El Paso Oil Refinery Company and was sold afterwards in
March 2005 to Valero Oil Corporation.
As seen, even after the closing of
LAGO, it provided the island the chance for continued development.
It was because of the popularity that the island got from LAGO,
since it was once the largest refinery in the world, which made the
locals to put all their energies in the tourism industry.
(http://www.aruba.com/about.htm)
Furthermore, it was because of the
existing refinery that was on the island that Coastal El Paso Oil
Refinery Company decided to re-open the refinery. The facilities
that LAGO built suited the requirements of the mentioned oil
company.
Basically, the post LAGO period
developed a great deal due to all the accomplishments during the
period. The people on the island gained a lot of experience from the
business world. Many of them opened their own businesses and many of
them had the opportunity to go abroad to study. Making tourism the
pillar of income for the island was a challenge, yet possible,
because of all the knowledge and experience they received during the
period of LAGO.
Conclusion
The beginning of a refinery on the
island was the beginning of a bloom for Aruba. Not only did those
who worked at the refinery benefited from it, but the island as a
whole saw the dramatic changes that went on.
The revenue that the island received
in the first year of LAGO was about five times more than the revenue
attained in early years before the refinery.
The result of this research show that
even though the refinery was an outside factor and with that also
brought lots of envelopments to the island, the people of Aruba
accepted it because of the growth in the economy that it would
bring. Furthermore, it would provide job opportunities and education
to many that were in poverty.
During the LAGO Period businesses
started to bloom and the increase in economy was obvious. Every
corner on the island benefited of the financial growth.
Even though the culture was
influenced a lot by the outside, it did not discontinue. It was
reshaped by some factors as mentioned on the chapter of “The Impact
on the Culture”.
After doing this research, I must say
that in my opinion the opportunity that LAGO gave to Aruba was what
made Aruba what it is today. Aruba is a successful island and keeps
growing with the time. There were different envelopments that took
place, like the building of the Colony in Seroe Colorado, but it
left a remarkable story behind it. It became part of the history of
Aruba and in every source that has the history of Aruba, the LAGO
period is in together with the Colony. It was because of the opening
of the refinery that Aruba got a chance to develop and to progress
in every aspect of life. The refinery was an external factor, but
with the immediate acceptance from the locals, it became an internal
factor. It was envelopment that eventually became development.
References
-
ATA, About, Retrieved on
April 28, 2006, from: http://www.aruba.com/about.htm
-
J. M. Ballenger (1969), The
Second Year 1939-1949. Aruba Esso News, special issue,
10-11
-
Dr. J. Hartog
(1961), De Refinaderij Begint, Aruba zoals het was, zoals het
werd pg. 316 Location: Van Dorp Aruba N.V.
-
Dan Jensen, A Short History of
Lago Oil & Transport, Ltd, Retrieved on April 28, 2006,
from: http://www.lago-colony.com/index.htm