'''''''''''

1. Inside Hitler’s Mind
Geostrategically speaking, Hitler had very few options, and therefore it is
very easy to see the world through his eyes. The first thing to note is that
during the Interwar Period (1919-1938) oil was mainly produced in
United States, Russia, the Persian Gulf, mainly Iraq, and South-Eastern
Asia, mainly Indonesia. The oil of North Africa and Saudi Arabia had not
been discovered yet.
Map Oil Production in the Interwar Period

2. During World War 1 the British and the French had managed to take
control of the oil of the Persian Gulf, the Russians had the oil of the
Caspian Sea under their control, and Germany had nothing. The Germans
could only count on the smaller oilfields of Romania.
Map The International Order After WW1
The Italians were importing their oil through the British and the French,
and they knew very well that in case of war the British and the French
could immediately cut off their oil supplies.

3. What Hitler wanted was to destroy the world order that was established
after WW1, in order for Germany to take control either the oil of the
Persian Gulf, or the oil of the Caspian Sea, or both. To do that Hitler had
only five choices. At the following map you can see four of them.
Map Inside Hitler’s Mind
The option for Hitler was to repeat the strategy of the German Empire
during World War 1 i.e. to march to the Persian Gulf through Austria and
Turkey (yellow line).
However if Hitler was to do that the Russians, the British and the French
would do what they did during WW1. They would leave their differences
aside for a while, and they would attack Germany.
Moreover, during the Balkan Wars of 1912-1913 the British, the Russians
and the French had used Greece and Serbia to form a geographic wall
between Germany and the Ottoman Empire. In addition, Turkey was
scared by her defeat in WW1, and she preferred to remain neutral.

4. For all the above reasons Hitler did not want, or could not, repeat the
strategy of the German Empire during WW1, in order to reach the Persian
Gulf and the Caspian Sea through Austria and Turkey.
The second option for Hitler was to form an alliance with Mussolini, in
order to jointly attack the British and the French at Palestine and get hold
of the oil of the Persian Gulf (purple line).
Map Inside Hitler’s Mind
This option was partially used by Hitler and Mussolini with the Arab
Spring of Palestine of 1936-1939 (Arab Revolt 1936-1939). Mussolini
was the main supporter of the Arab Spring of Palestine, and he was
sending money and weapons to the Grand Mufti of Jerusalem and the
Muslim Brotherhood, in order to cause an Arab Revolt against the
British. But Hitler was also a close ally of the Muslim Brotherhood, and
therefore it is a sure thing that he was behind the Arab Spring of Palestine
too. See “The Alliance Between Hitler and the Muslim Brotherhood”.
https://iakal.wordpress.com/2016/08/18/the-alliance-between-hitler-and-
the-muslim-brotherhood/

5. Many Jewish terrorists were also attacking the British, most of them
supported by Stalin and Russia. It is said that Jewish terrorism against the
British was also supported by Hitler and Mussolini, but Hitler and
Mussolini were allies of the Muslim Brotherhood, and therefore Stalin
had a lot more space to support Jewish terrorists against the British.
Remember that many of the Jews of Palestine were Russian Jews who
had fled Russia to escape from the Tsar. The Jews were allies of the
Ottomans, and Tsarist Russia was very anti-Semitic. Palestine was an
Ottoman colony at the time, and many Jews were leaving Russia for
Palestine, were they were welcome by the Ottomans. When the Russian
Communists came to power they were recturing some of these Jews of
Palestine in order to carry out terrorist attacks against the British.
However during the British mandate of Palestine most of the Jews of
Palestine were British allies i.e. the Haganah.
Therefore Hitler did use this second option, even if only partially, and he
attacked the British in Palestine with Mussolini. What is interesting is
that Mussolini had almost become an ally of Britain and France against
the Nazis in 1935 with the Stresa Front agreement. With the agreement of
Stresa Front the British and the French agreed to give Mussolini some
space in Africa, in order to convince him not to become a Nazi ally.
However things went wrong because Mussolini wanted Italy to have
direct military control over the agreed regions in Africa, while the British
and the French were willing to offer Italy diplomatic and economic
control.

6. Map The Mussolini Ambitions
https://en.wikipedia.org/wiki/Italian_imperialism_under_Fascism#/media
/File:Italian_Fascist_Empire.png
During WW1 the British and the French had taken control of East
Mediterranean and the Persian Gulf, and Mussolini thought that it was
only fair that they allowed Italy to control Libya and Ethiopia, in order to
reach the Indian Ocean through Africa. As I said the oil of North Africa
had not been discovered yet, and Egypt was in Britain’s sphere of
influence.
But if Mussolini controlled the Horn of Africa with his army, the British
and French spheres of influence in the Persian Gulf would be constantly

7. under threat, because Mussolini could attack them from Ethiopia, the
Russians could attack them from the Caucasus and Iran, and Germany
could attack them through Turkey. Moreover Mussolini could attack the
British and French ships at the Straits of Bab el Mandeb at the Red Sea,
and he could cut off their oil supplies from the Gulf. Remember that the
oil pipelines of the Middle East were constructed after the end of WW2.
See Foreign Affairs “Pipelines in the Sand”.
Therefore the British and the French were willing to grant Italy with the
political and economic control of the Horn of Africa, but not with
militarily control. That was not enough for Mussolini, who finally
decided to enter the war on the side of Germany and Russia against
Britain and France.
Map The Italian Corridor of Mussolini (Green Line)
Hitler’s third option was to form an alliance with the British against the
French and the Russians. The Russians were fighting the British in India
and the French were fighting the British in Africa, and therefore the

8. Germans could form an alliance with the British, in order to take the
disputed borderlands at their borders with France, and in order to take the
oil of the Caspian Sea from Russia. And in return they would leave the
Persian Gulf to the British (pink line).
Χάρτης Οι Επιλογές του Χίτλερ
That was the so called Lebensraum i.e. the “living space” of Germany,
which you can see at the following map.
Map Lebensraum

9. https://upload.wikimedia.org/wikipedia/commons/thumb/0/0b/Greater_G
ermanic_Reich.png/350px-Greater_Germanic_Reich.png
But the British were not interested in helping the Nazis promote the
Lebensraum i.e. to take the oil of the Caspian Sea, because Hitler was not
reliable, and they were sure that once he had taken control of the Caspian
oil he would march to the Persian Gulf. The British were proposing Hitler
and alliance with Germany accepting the international order that was
created with WW1, which meant that Germany would import oil from

10. Britain and Russia, but would not stretch her muscle to the Caspian Sea.
But the British proposal did not satisfy Hitler.
The fourth option for Hitler was to form an alliance with Stalin against
the French and the British. The Germans would attack the British at the
Persian Gulf from the West, and the Russians would attack the British
from the north at the Persian Gulf and India.
Map Inside Hitler’s Mind
This one was the option that was finally promoted by Hitler, but in a
version proposed by Stalin. The Russian Communists agreed to supply
the Nazis with oil, iron and wheat, in order to help them beat the British
and the French, but they did not want to exhaust their army in a war
against the British, because they knew that once Hitler had got hold of the
the Persian Gulf he could march to the Caspian Sea too.
Therefore they agreed to help Hitler beat the British and the French,
while they would keep their army fresh, in order to defend their oil
supplies if Hitler decided to attack them after the British and the French

11. were finished, and in order to attack the British in India if they lost the
war against the Nazis.
This plan was a good one for Stalin. The Germans, the French and the
British would exhaust themselves in a war, and that would increase the
relative strength of Russia. And that was what actually happened up to a
point. But in the end the Nazi-Communist alliance was broken by Hitler,
because the oil that was sent to him by the Russian Communists was not
enough for his thirsty army. And Hitler invaded Russia in 1941 to take
control of the oil of Baku.
These were the 4 out of the 5 options that Hitler had at his disposal. The
5th
option for Hitler was to follow the British advise and respect the post
WW1 international order. But that meant Hitler would not go for neither
the Persian Gulf nor the Caspian Sea, and it was an option not interesting
for Hitler. Therefore Hitler decided to form an alliance with the Russian
Communists, and go for the oil of the Persian Gulf instead.
Map the Nazi-Communist Alliance

12. References
I read various things and I normally do not mention my references. But
sometimes, when something really helps my thinking, I have to mention
some references, as I have done with Murray Rothbard in some of my
economic essays.
Therefore I have to mention Henry Kissinger’s Diplomacy. Three of the
chapters of his book really helped me understand the geopolitics of World
War 2 i.e. “The End of Illusion – Hitler and the End of Versailles”,
“Stalin’s Bazaar”, and “The Nazi Soviet Pact”.
Very simple writing, very clever writing, very informative writing.
Image Henry Kissinger’s Diplomacy

13. Articles
In March 1938 the first oilfield of Saudi Arabia was discovered.
“History of the oil industry in Saudi Arabia”

14. Saudi Arabian oil was first discovered by the Americans in commercial
quantities at Dammam oil well No. 7 in 1938 in what is now modern
day Dhahran.
https://en.wikipedia.org/wiki/History_of_the_oil_industry_in_Saudi_Ara
bia
Libya’s importance was enhanced in the 50s, when there were signs
that Libya had oil, and in 1959 oil was discovered.
“COLD WAR LIBYA:ALL ABOUT OIL”
1-5th
Paragraphs
When the Cold War began, Libya held little importance for either
superpower. Yes, it was the home to Wheelus Air Force base, one of the
major American bomber bases in the Eastern Hemisphere, but that’s
about it. Leading exports were esparto, a type of grass used to make paper
for currency bills, and scrap metal scavenged from the rusting tanks and
trucks and weaponry that had been left behind by the Allies and the Axis
powers.
The country gained some recognition when independence was declared
on December 24, 1951. The Soviet Union had been stymied in its efforts
to establish a Mandate over the country following the end of World War
II. Now, Libya was the first country to achieve independence through the
United Nations. It was also one of the first former European possessions
in Africa to gain independence.
Proclaimed a constitutional and hereditary monarchy, the new United
Kingdom of Libya was made up of three arbitrarily joined provinces:
Cyrenaica, Tripolitania, and Fezzan. The kingdom formed a federal
government with three capital cities.: Tripoli, Benghazi, and Al

15. Bayda. Idris as-Senussi, the Emir of Tripolitania and Cyrenaica and the
leader of the Senussi Muslim Sufi order, was declared king.
Two years after independence, on March 28, 1953, Libya joined the Arab
League.
In the mid 1950s, Libya gained further significance with the growing
suspicion that the country might produce oil.
8th
Paragraph
The first round of negotiations in 1957 saw 17 companies bid for a total
of 84 concessions. Early exploration results were disappointing, but this
changed in 1959 when Standard Oil of New Jersey made a huge strike
about 100 miles south of the Mediterranean coast. The US State
Department summed it up: “Libya has hit the jack-pot.”
13-18th
Paragraphs
While the Libyan government at that time was friendly — or at least
neutral — toward the United States, the Libyan business environment
was hostile, permeated with corruption.
Soon the political environment would be hostile as well. On April 25,
1963, the federal system of government was abolished and the name of
the country was changed to the Kingdom of Libya. More far reaching
changes were soon to come.
The monarchy ended on September 1, 1969 when a group of military
officers staged a coup d’état against King Idris while he was in Turkey
for medical treatment. The coup was led by a 28 year old army officer
named Mu’ammar Abu Minyar al-Qadhaffi. King Idris was exiled to
Egypt.
The new regime, headed by the Revolutionary Command Council (RCC),
abolished the monarchy and proclaimed the new Libyan Arab
Republic. The new RCC’s motto became “freedom, socialism, and
unity.” It pledged to remedy “backwardness”, take an active role in the

16. Palestinian Arab cause, promote Arab unity, and encourage domestic
policies based on social justice, non-exploitation, and an equitable
distribution of wealth.
The new government soon negotiated with the Americans to evacuate the
Wheelus Air Base from Libya. The agreement had just two more years to
run. In December 1969, the US agreed to vacate the facility by June 1970.
http://coldwarstudies.com/2011/03/24/cold-war-libyaall-about-oil/
“Oil - Oil and world power”
The United States dominated world oil production in the first half of
the twentieth century. U.S. fields accounted for slightly more than 70
percent of world oil production in 1925, around 63 percent in 1941, and
over 50 percent in 1950. The U.S. oil industry operated in a unique
regulatory environment that included a permissive legal regime, generous
tax treatment, and a cooperative system of national production control
centered on the state of Texas, which accounted for almost half of total
U.S. production. During the Great Depression, the federal government,
several state governments, and the oil companies worked out a control
system that placed a ceiling on total output and allocated production so
that marginal producers could survive in the face of considerable excess
capacity. Although Texas authorities refused to require producers to pool
their extractive activities in each oil field, thereby allowing wasteful
extractive processes to continue, the system allowed high-cost marginal
wells to continue to produce, thus preserving lower-cost fields for future
use. Higher prices also somewhat reduced consumption. With the Texas
Railroad Commission as a balance wheel, the system remained in place
until the early 1970s, when domestic production alone could no longer
fill national demand.

17. In addition to being blessed with a thriving and productive domestic oil
industry, five of the seven great oil corporations (the so-called Seven
Sisters) that dominated the international oil industry from the 1920s to the
1970s were American companies. U.S. oil companies, along with British
firms, dominated the oil industries of the two main producing countries in
Latin America, Mexico and Venezuela, and had smaller holdings
throughout the region. During the 1920s and early 1930s, the United
States successfully supported efforts by U.S. oil companies to gain oil
concessions in the Middle East. U.S. companies were also involved in
regionally significant oil fields in the Netherlands East Indies. By the eve
of World War II, U.S. companies accounted for nearly 40 percent of oil
production outside the United States and the Soviet Union.
More importantly, the United States possessed the means to ensure the
stability of the producing regions and gain access to their oil. The United
States Navy had emerged from World War I second to none, thus
providing the United States with the capability of securing access to
overseas oil-producing areas. The United States was already firmly
entrenched in the oil-rich Gulf of Mexico–Caribbean region before World
War I for security reasons that predated oil's emergence as a strategic
commodity. World War II and the Cold War reinforced traditional U.S.
determination to maintain an economic and strategic sphere of influence
in Latin America. Securing the Persian Gulf, which emerged as the center
of the world oil industry following World War II, was more difficult for
several reasons, including the region's distance from the United States,
the involvement of rival great powers, and the dynamics of regional
politics. Great Britain had emerged as the leading power in the Middle
East following World War I. Following World War II, the United States
gradually assumed Britain's role as the main guarantor of Western
interests in the Middle East.

18. Oil became an important element in military power in the decade before
World War I when the navies of the great powers, led by Great Britain
and the United States, began to switch from coal to oil as their source of
power. In addition, the major military innovations of World War I—the
submarine, the airplane, the tank, and motorized transport—were all oil-
powered. Although the surface fleets of the great powers played a
relatively minor part in the fighting, German submarines wreaked havoc
on British and French shipping and helped bring the United States into
the war. In addition, oil carved out a role in the manufacture of munitions
when the British, using a process developed by Royal Dutch/Shell, began
extracting toluol, an essential ingredient in the explosive TNT, from oil.
Access to oil became more important toward the end of the war with the
transition from static trench warfare, with its limited demand for oil-
powered machinery, to a more fluid operational environment in which
tanks, motorized transport, and aircraft played a larger role.
Britain and France were able to draw on over-seas sources of supply from
Iran, Mexico, and the United States, while the Germans were limited to
oil from Romania. By the last year of the war, the United States was
supplying more than 80 percent of Allied oil requirements, and the
American navy was playing a key role in supplying and protecting tanker
transport of oil to Europe. Although Lord Curzon's boast that the Allied
cause had floated to victory on a wave of oil was an overstatement, severe
shortages of oil in 1917 and 1918 threatened to immobilize the Royal
Navy and the French army. In both cases, urgent requests to the United
States for help led to the provision of the needed supplies. In contrast,
without such external assistance, oil shortages hindered German military
operations at critical points.
In addition to being a tremendous military asset, access to ample supplies
of oil provided the United States with important advantages in the

19. industrial transformation of the first half of the twentieth century. By the
1890s, the United States had overtaken Great Britain as the leading
industrial power in the world, and by the 1920s, the U.S. economy was
larger than the combined economies of the next six great powers (Great
Britain, France, Germany, Italy, Soviet Union, and Japan).
Cheap and plentiful supplies of oil were a prerequisite for the automobile
industry, which played a central role in the U.S. economy from the 1920s
to the 1960s. Oil became the fuel of choice in land and sea transport as
well as the only fuel for air transport, and challenged coal as the main
source of energy for industry. Oil also played an important, if somewhat
less crucial, role in heating and electricity generation, but oil-powered
machinery became crucial to modern agriculture, and oil became an
important feedstock for fertilizers and pesticides. Indeed, with the
development of the petrochemical industry, oil reached into almost every
area of modern life. Already almost one-fifth of U.S. energy consumption
by 1925, oil accounted for around one-third of U.S. energy use by World
War II. Outside the United States, in contrast, oil was a secondary fuel
reserved mainly for transportation and military uses and accounted for
less than 10 percent of energy consumption in western Europe and Japan
before World War II.
The Soviet Union was the only other great power that possessed
significant quantities of oil within its borders. The Russian empire had
been the world's leading oil producer in 1900, accounting for more than
half of world production. Soon thereafter a combination of geological and
political problems caused output to plummet. Soviet oil production
recovered rapidly in the 1920s, and by 1939 the Soviet Union was the
second-largest oil producer in the world, far behind the United States and
slightly ahead of Venezuela. Although the Soviets reentered exports

20. markets briefly in the late 1920s, by the end of the 1930s almost all
Soviet oil production was being devoted to internal uses.
The other great powers (Great Britain, France, Germany, and Japan)
lacked indigenous oil reserves and were therefore dependent on foreign
sources. Although British companies held concessions in Latin America,
the Middle East, and Asia, maintaining access to this oil required stability
in the oil-producing areas and control of the sea routes linking the oil-
producing areas to Britain. British security policy called for the
Mediterranean and the Middle East to be defended because they lay
athwart land, sea, and air routes to India, the Far East, and the Pacific
dominions. If the Mediterranean were closed, a prospect that seemed
increasingly likely as Britain's relative power declined in the 1930s,
access to Middle East oil would be very difficult, assuming that the oil
fields and other facilities could be defended. Production in the Far East
was not great, and access to its oil would be even more difficult to defend
in wartime. Wartime access to Western Hemisphere oil would be
dependent on the acquiescence and probably the assistance of the United
States, to which Britain had conceded regional supremacy shortly after
1900 and whose help would be needed to transport the oil safely across
the Atlantic. This dependence on the United States for vital oil supplies
was a critical weakness in Great Britain's power position.
During the 1930s, the British government studied the possibility of
reducing its reliance on imported oil by using Britain's ample coal
supplies as a source of synthetic oil. It rejected this alternative on security
grounds, concluding that, given the British position in the major oil
producing areas and the strength of the Royal Navy, reliance on imported
oil would be less vulnerable to interdiction than large synthetic oil plants
that would be conspicuous targets for air attack.

21. France's stake in foreign oil was largely limited to a share in Iraqi oil
production and a few holdings in Romania. Access to Iraq, which by
1939 supplied almost half of France's oil imports, was dependent on
British assistance to keep the Mediterranean open and the Middle East
secure. Romania was able to fill only a small portion of French oil
requirements, and access to Romanian oil would be unreliable in the
event of a conflict with Germany. Access to Western Hemisphere oil, the
other source of French imports, was dependent on U.S. goodwill and
assistance. The French also explored extracting oil from coal and using
alcohol as a motor fuel, but neither alternative provided sufficient
supplies to relieve France's dependence on imported oil. France was thus
doubly dependent, needing British and U.S. cooperation to ensure access
to oil.
German and Japanese oil companies had been shut out of the major
foreign oil-producing areas, leaving both nations dependent on foreign
companies for necessary supplies and thus vulnerable to economic and
political pressure. Moreover, their access to oil in the Middle East and the
Western Hemisphere was threatened by British and U.S. control of the
oil-producing areas and Anglo-American command of the sea routes to
these regions.
Convinced that oil was essential to fuel his ambitions, Nazi leader Adolf
Hitler moved to promote the development of a synthetic fuel industry in
Germany shortly after taking power in 1933. By the outbreak of World
War II, coal-derived synfuels accounted for nearly half of Germany's
peacetime oil needs. The process of extracting oil from coal was
complicated and expensive, and the huge installations required massive
amounts of steel and were very vulnerable to air attack. Therefore,
obtaining access to oil that did not depend on sea routes subject to

22. interdiction by enemies remained an important part of Nazi expansionist
strategy.
Germany received large quantities of oil from the Soviet Union under the
terms of the 1939 Nazi-Soviet Pact, and in November 1940 gained
assured access to Romanian oil when Romania was forced to adhere to
the Tripartite Pact. These supplies were inadequate for Germany's needs,
leading Hitler to look to the conquest of the rich oil fields of
the Caucasus as a way to gain oil for Germany's highly mechanized
military machine. Thus, the desire to gain assured access to oil was an
important factor in Hitler's decision to invade the Soviet Union in June
1941.
Obtaining access to oil was also a key factor behind Japan's decision to
attack the United States. By the end of the 1930s, Japan was dependent
on the United States for 80 percent of its oil needs. Most of the rest came
from the Netherlands East Indies, where Shell and the Standard-Vacuum
Oil Company, a jointly owned subsidiary of Standard Oil (New Jersey)
and Socony-Vacuum, controlled production. The Netherlands East Indies
possessed the largest reserves in East Asia, and control over its oil would
go a long way toward meeting Japan's oil needs. On the other hand,
seizing the Netherlands East Indies would lead to conflict with Great
Britain and the United States. Nevertheless, the Japanese chose this
course after the United States, Britain, and the Netherlands imposed an
oil embargo on Japan in the late summer of 1941 in response to Japan's
decision to take control of all Indochina.
World War II marked the apogee of oil's direct military importance, and
the role of oilpowered weapons systems demonstrated that oil had
become the lifeblood of the modern military machine. All the key
weapons systems of World War II were oil-powered: surface warships
(including aircraft carriers), submarines, airplanes (including long-range

23. bombers), tanks, and a large portion of sea and land transport. Oil
continued to play an important role in the manufacture of munitions, and
the development of petroleum-based synthetic rubber helped relieve
Allied dependence on Southeast Asian natural rubber supplies, most of
which were in the hands of the Japanese for much of the war.
The United States entered World War II with a surplus production
capacity of over one million barrels per day, almost one-third of U.S.
production in 1941. This margin enabled the United States, almost single-
handedly, to fuel not only its own war effort but that of its Allies, once
the logistics of transporting the oil safely across the Atlantic had been
mastered. In addition, U.S. leadership in oil-refining technology provided
the U.S. military with such advantages as 100-octane aviation gasoline
and specialty lubricants needed for high performance aircraft engines.
The Soviet Union also benefited from having indigenous oil supplies. The
Soviets were able to retain control of the vital Caucasian oil fields, and
rushed new fields in the Volga-Urals region, safely removed from the
fighting, into production. These successes helped Soviet forces attain the
mobility necessary to repel the German invaders and go on the offensive.
German and Japanese failure to gain secure access to sufficient oil
supplies was an important factor in their defeat. German synthetic fuel
production proved barely adequate for wartime requirements, and failure
to gain control of the rich oil fields in the Caucasus, coupled with
setbacks in the Middle East and North Africa, left the German military
vulnerable to oil shortages throughout the war. Indeed, Germany was able
to hang on as long as it did only because the absence of a second front
until the summer of 1944 kept oil requirements at manageable levels. In
the late summer of 1944, the Allied bombing campaign began belatedly
targeting synthetic fuel plants. By the end of the war, the German war
machine was running on empty.

24. The Japanese gained control of the Netherlands East Indies in 1942, but
many of the oil facilities had been sabotaged and took time to restore to
full production. More importantly, transporting oil from the East Indies to
Japan proved increasingly difficult owing to the remarkable success of
U.S. submarines in interdicting Japanese shipping. By late 1944, Japan
faced serious oil shortages, with crippling military consequences.
With the exception of the jet engine, the major military innovations of
World War II—radar, ballistic missiles, and the atomic bomb—were not
oil-powered. Nevertheless, oil remained central to the mobility of land,
sea, and air forces. Despite the development of nuclear-powered warships
(mainly aircraft carriers and submarines), most of the world's warships
remained oil-powered, as did aircraft, armor, and transport. In addition,
each new generation of weapons required more oil than its predecessors.
Thus, while the advent of the atomic age meant that access to oil would
not have been a key factor in a full-scale war between the United States
and the Soviet Union, which presumably would have been fought
primarily with nuclear weapons and ballistic missiles, such conflicts as
the wars in Korea, Vietnam, and the Persian Gulf were fought with
conventional, largely oil-powered weapons, thus demonstrating the
continued centrality of oil-powered forces, and hence oil, to military
power.
Oil's economic importance increased after World War II as the United
States intensified its embrace of patterns of socioeconomic organization
premised on high levels of oil use, and western Europe and Japan made
the transition from coal to oil as their main source of energy. U.S. and
world oil consumption skyrocketed in the 1950s and 1960s. Between
1950 and 1972, total world energy consumption increased 179 percent,
much faster than population growth, resulting in a doubling of per capita
energy consumption. Oil accounted for much of this increase, rising from

25. 29 percent of world energy consumption in 1950 to 46 percent in 1972.
By 1973, oil accounted for 47 percent of U.S. energy consumption.
Western Europe and Japan were even more dependent on oil for meeting
their energy needs; by 1973 oil accounted for 64 percent of west
European energy consumption and 80 percent of Japanese energy
consumption.
Control of oil played a vital role in establishing and maintaining U.S.
preeminence in the postwar international system. Adding to its domestic
power base, the United States consolidated its control of world oil in the
decade following World War II. By the mid-1950s, U.S. oil companies
were firmly entrenched in the great oil-producing areas outside the Soviet
Union. Equally, if not more important, the United States, as the dominant
power in the Western Hemisphere, controlled access to the region's oil,
and the United States alone had the economic and military power to
secure Western access to Middle East oil.
The Soviet Union also possessed a powerful domestic oil industry, but
despite geographical proximity, extensive efforts, and widespread anti-
Western sentiment in Iran and the Arab world, the Soviets failed to
achieve a secure foothold in the Persian Gulf and had little impact on the
region's oil industry. The Soviets had even less influence over the
Western Hemisphere's oil producers. Indeed, the U.S.-led economic
boycott of Cuba forced the Soviets to supply the one foothold they
possessed in the Western Hemisphere with oil at subsidized prices.
The strong position of the United States in world oil provided multiple
advantages. In addition to being central to military power and economic
prosperity, control of oil gave the United States leverage over its allies
and its former and prospective enemies. U.S. policymakers saw economic
growth as essential to preventing the recurrence of the divisive
ideological and social conflicts of the interwar years. Soviet expansion

26. into eastern and central Europe as a result of World War II left the Soviet
Union in control of almost all of Europe's known indigenous oil reserves
as well as important sources of coal in Poland and the Soviet zone of
Germany. Making matters worse, postwar western Europe faced a coal
shortage of alarming proportions owing to wartime overproduction and
destruction and postwar food, transportation, and other problems.
To fuel economic recovery and to prevent western Europe from becoming
dependent on the Soviets for energy, the United States sought to ensure
that this critical area received the oil it needed. Economic growth, in turn,
was crucial to mitigating the divisive class conflicts that had divided
European and Japanese society in the first half of the century. Economic
growth and prosperity undercut the appeal of leftist parties, financed the
welfare state, perpetuated the ascendancy of moderate elites, and
sustained the cohesion of the Western alliance. By controlling access to
essential oil supplies, the United States was able to reconcile its aim of
German and Japanese economic recovery and integration into a Western
alliance with that of ensuring against the recurrence of German and
Japanese aggression.
Economic growth in western Europe and Japan was central to the
containment of Soviet power and influence during the Cold War because
it helped prevent these areas from falling to communism through internal
processes. Finally, for many years after World War II the Soviets lacked
sufficient oil to fight a major war. Hit hard by wartime damage,
disruption, transportation problems, equipment shortages, and overuse,
Soviet oil production dropped after the war, and the Soviet Union was a
net importer of oil (mostly from Romania) until 1954. Exclusion of the
Soviets from the Middle East retained oil for Western recovery, and kept
the Soviets short of oil. In addition, U.S. and British strategic planners
wanted to keep the Soviets out of the Middle East because the region

27. contained the most defensible locations for launching a strategic air
offensive against the Soviet Union in the event of a global war.
Throughout the Cold War, ensuring Western access to Middle East oil
was a basic objective of U.S. foreign policy.
http://www.americanforeignrelations.com/O-W/Oil-Oil-and-world-
power.html