Juan Pablo Pérez Alfonzo

Pérez Alfonzo helped found the political party Democratic Action (AD; Acción Democrática). As Minister of Development during the first democratic government of Venezuela, the short-lived administration of Rómulo Gallegos (1947–1948), he was responsible for increasing oil revenues for the country by raising taxes through what later became known worldwide as the 50/50 formula. Initially, the Seven Sisters (the dominant Anglo-American oil companies), responded to the 50/50 law by threatening to ramp up production elsewhere while slowing down production in Venezuela. Perez Alfonso subsequently encouraged other governments to adopt the 50/50 formula, which they ultimately did.[2] The 50/50 formula was the global norm until 1970.[2]

With the overthrow of the democratically elected government of President Rómulo Gallegos by the military in November 1948, Perez Alfonzo obtained political asylum in the United States after spending 9 months in jail. He moved to Mexico for financial reasons, where he resided until the return of democracy in 1958, when the democratically elected President Rómulo Betancourt called him back to government service to finish the job he had begun under the presidency of Gallegos, this time as Minister of Energy. During the years he spent in Washington he studied the activities of the oil industry worldwide and, in particular, the Texas Railroad Commission (TRC), which served to reinforce his ideas about creating OPEC, further developing his thoughts about conservation and stabilization of petroleum production and the defense of oil prices.

As Minister of Mines and Hydrocarbons during the second democratic government of Venezuela of president Rómulo Betancourt (1959–1964), he was responsible for the creation of OPEC (Organization of Petroleum Exporting Countries) for the purpose of rationalizing and thereby increasing oil prices in the world market. Triggered by a 1960 law instituted by US President Dwight Eisenhower that forced quotas for Venezuelan oil and favored Canada and Mexico's oil industries, Perez Alfonzo (also known as the Father of OPEC) reacted seeking an alliance with oil producing Arab nations to protect the continuous autonomy and profitability of Venezuela's oil (among other reasons), establishing a strong link between the South American nation and the Middle East region that survives to this day. His extensive notes of the TRC methods for regulation of production to maximize recovery served him well both in Venezuela and later when he took them translated into Arabic to the Cairo meeting that served as launching platform for OPEC, where Wanda Jablonski introduced him to then minister of petroleum of Saudi Arabia, Abdullah Tariki, co-founder of OPEC.[3]