Arbusto Energy was an

oil and gas exploration Hydrocarbon exploration (or oil and gas exploration) is the search by petroleum geologists and geophysicists for deposits of hydrocarbons, particularly petroleum and natural gas, in the Earth using petroleum geology. Exploration methods Vis ...

firm started in 1977 by former

U.S. president The president of the United States (POTUS) is the head of state and head of government of the United States of America. The president directs the executive branch of the federal government and is the commander-in-chief of the United States ...

George W. Bush George Walker Bush (born July 6, 1946) is an American politician who served as the 43rd president of the United States from 2001 to 2009. A member of the Republican Party, Bush family, and son of the 41st president George H. W. Bush, he ...

. In 1984, the company merged with Spectrum 7 Energy Corp.

Company history

Arbusto Energy was organized in 1977, but did not begin operations until after Bush's unsuccessful 1978 run for Representative from Texas's 19th congressional district. In March 1979, the company began raising funds for oil exploration through private offerings. In April 1982, Bush decided to begin offering public drilling partnerships, but had difficulty raising subscriptions. A change in the company name to ''Bush Exploration'' brought no improvement. With little success in its drilling program, the company merged with Spectrum 7 Energy Corp. in February 1984, with Bush holding the positions of Chairman and CEO. In 1986, a rapid fall in oil prices made investment in oil exploration unattractive, and put the company in financial difficulties. Spectrum 7 began looking for partners or purchasers, and in September of that year it was acquired by

Harken Energy HKN, Inc. is a company engaged in hydrocarbon exploration headquartered in Southlake, Texas. It is notable for the Harken Energy scandal, which involved allegations of insider trading by George W. Bush in 1990. The company was known as Harken En ...

through a stock swap, with Bush joining the Harken board of directors. From 1981–1986 the chief financial officer of Arbusto Energy was

Mike Conaway Kenneth Michael Conaway (born June 11, 1948) is an American politician who was the U.S. representative for from 2005 to 2021. He is a member of the Republican Party. The district Conaway represented is located in West Texas and includes Midland ...

. Conaway served as the

U.S. representative The United States House of Representatives, often referred to as the House of Representatives, the U.S. House, or simply the House, is the lower chamber of the United States Congress, with the Senate being the upper chamber. Together they c ...

for from 2005–2021.

Arbusto and James Bath

One of the early investors in Arbusto was Houston businessman

James R. Bath James Reynolds Bath (born August 18, 1936) is a Texas businessman who has business interests in aircraft sales and leasing and real estate. He is best known for his business relationships with Saudi businessmen Salem bin Laden and Khalid bin Mahf ...

. Bath and Bush became acquainted when both men were serving as reserve pilots in the Texas Air Guard in the early 1970s, and according to journalist Craig Unger, Bath invested $50,000 in Arbusto. At the time of the investment, Bath was a representative for Saudi businessman Salem bin Laden, the oldest son of Mohammed bin Laden, founder of the Saudi Binladin Group, the largest old construction company in Saudi Arabia. Bath's business partner Charles White later became involved in a legal dispute with Bath, during which he claimed that Bath had actually invested in the company on behalf of bin Laden and other Saudi businessmen. Both Bath and Bush have denied this, and according to journalist

Craig Unger Craig Unger (b. March 25, 1949) is an American journalist and writer. He has served as deputy editor of ''The New York Observer'' and was editor-in-chief of Boston Magazine. He has written about George H. W. Bush and George W. Bush for ''The Ne ...

, who examined the relationship between the Bushes and Saudi financiers in his 2004 book '' House of Bush, House of Saud'', and journalist Steve Coll, whose book '' The Bin Ladens: An Arabian Family in the American Century'' examines the family's history, there is no evidence to support the claim.Unger, 101

References

{{reflist Defunct oil companies of the United States Petroleum in Texas George W. Bush Bin Laden family Midland, Texas Energy companies established in 1977 Non-renewable resource companies established in 1977 Defunct companies based in Texas

Company history

Arbusto and James Bath

See also

References