2012/05/22 by David S. Painter · 4 citations
Environmental Science · #American Environmental and Regional History
paper · pdf · doi:10.1093/jahist/jas073
openalex publication_date 2012/05/22 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/30
Understanding how oil fueled the “American century” is fundamental to understanding the sources, dynamics, and consequences of U.S. global dominance. Essential to both military power and the functioning of modern society, oil fueled American power and prosperity during the twentieth century. The United States was the world’s leading oil producer for the first three-quarters of the century, and five of the seven great oil corporations that dominated the international oil industry from the 1920s to the 1970s were American companies. Control of oil bolstered U.S. military and economic might and enabled the United States and its allies to win both world wars and the Cold War.1 The U.S. government worked closely with the oil industry to gain and maintain control of overseas oil reserves, reflecting a symbiosis of national security interests and the interests of the oil companies. Maintaining access to oil became a key priority of U.S. foreign policy and involved the United States in regional and local conflicts in Latin America, the Middle East, and other oil-producing areas in ways that distorted development in many countries. Most of the major doctrines of postwar U.S. foreign policy—the Truman, Eisenhower, Nixon, and Carter Doctrines—related, either directly or indirectly, to the Middle East and its oil.2 The availability of inexpensive oil encouraged the United States to adopt patterns of socioeconomic organization premised on high levels of oil use. Understandable when oil was inexpensive and access secure, this way of life has become less sustainable as economic, strategic, and environmental conditions have changed. Shortly before World War I the United States began converting its coal-burning battle fleet to one that used oil for fuel. Oil provided numerous advantages over coal, including enabling ships to attain greater speed and range and providing an easier refueling process. Oil also solved the navy’s problem of projecting its power in the Pacific Ocean. Coal from the western United States was unsuitable for use in marine steam engines, so supplies for coaling stations had to be shipped from Wales or Appalachia. In contrast, oil was available in California, allowing the U.S. Navy more easily to extend its reach across the Pacific.3 Although the surface fleets of the great powers played a relatively minor part in World War I, important military innovations such as the submarine, the airplane, the tank, and motorized transport were oil powered. Oil also carved out a role in the manufacture of munitions when scientists developed a process for extracting toluol (toluene), an essential ingredient in TNT, from oil. Over the course of the war the United States supplied more than 80 percent of Allied oil requirements, and after U.S. entry into the war, the United States helped provide and protect tankers transporting oil to Europe. U.S. oil resources meant that insufficient energy supplies did not hamper the Allies, as they did the Central Powers.4 The development of the oil-powered internal combustion engine in the late nineteenth century and its almost-universal adoption in the transportation sector during the twentieth century transformed the U.S. economy. Oil powered the automobiles, trucks, ships, and airplanes that revolutionized transportation and altered the physical, economic, and social landscape. Oil-powered machinery and petrochemical-based pesticides, herbicides, and fertilizers also sparked unprecedented increases in agricultural production.5 The United States accounted for almost two-thirds of world oil production in 1920, and the availability of inexpensive oil led the country to reshape its society and economy in ways that guaranteed a large and growing demand for oil. The number of cars registered in the United States increased from 3.4 million in 1916 to 23.1 million by the end of the 1920s. In the 1930s the United States began “motorizing” its cities, moving away from public transit and further entrenching high levels of oil use into the structure of American society. Oil already accounted for almost one-fifth of U.S. energy consumption by 1925, and that figure rose to one-third by World War II. In contrast, outside the United States 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.6 The uneven distribution of world oil supplies had a significant and often-overlooked impact on the interwar balance of power. The United States and the Soviet Union were the only great powers with large oil reserves within their borders. Although British and French companies held concessions in the Middle East, maintaining access required security and stability in the oil-producing areas and control of the sea routes, particularly through the Mediterranean Sea. Their other main source of oil was the Western Hemisphere, and wartime access to this oil would be dependent on the goodwill and probably the assistance of the United States, whose help would be needed to transport the oil safely across the Atlantic Ocean. German and Japanese oil companies had been almost completely shut out of the major oil-producing areas, leaving both nations reliant on foreign companies for necessary supplies and thus vulnerable to economic and political pressure. Moreover, Anglo-American sea power threatened Germany and Japan’s access to oil from the Western Hemisphere and the Middle East.7 The United States strengthened its position as the world’s leading oil producer during the interwar period and by 1940 accounted for over two-thirds of world production. After a brief oil-shortage scare following World War I, the growth in U.S. reserves outstripped demand as new fields were found in California and Oklahoma. The discovery of the giant East Texas oil field in 1930 amid the Great Depression made overproduction rather than scarcity the main issue facing the U.S. oil industry.8 Naval power, and later air power, allowed the United States to secure access to overseas oil-producing areas, especially in the oil-rich Gulf of Mexico–Caribbean region. In addition, the U.S. government helped U.S. oil companies expand their operations overseas by insisting on an Open Door policy of equal opportunity and by supporting private cooperative arrangements among the major companies. Between 1928 and 1934, U.S. companies gained oil concessions in the Netherlands East Indies, Venezuela, Iraq, Bahrain, Saudi Arabia, and Kuwait.9 U.S. and British companies lost access to Mexican oil in 1938 when the Mexican government nationalized most of the foreign companies in Mexico and set a national oil to the not only the position of the international oil companies also the role of corporations in the economic development of would become as the Mexican production had been in the and the development of the oil industry by U.S. and British companies made for the of the end of the had become the oil producer in the the United States and the Soviet as as the leading Oil played an important role in the of World War II. that oil was essential to the development of a fuel The process of extracting oil from required of coal, and by accounted for percent of oil and percent of its In 1940 Germany gained access to oil. were not to and control of the oil of the was an important in to the Soviet Union in access to oil was also a key Japan’s to the United Japan developed oil in during the production was and leaving Japan dependent on the United States for 80 percent of its oil Most of the from the Netherlands East Indies, the reserves in East Control over that oil would Japan’s oil had increased during the The United States oil to Japan in the of Japanese to to war to the oil fields of the Netherlands East or in to U.S. pressure. thus led directly to the Japanese on and other U.S. in The key of World War airplanes and a large of sea and oil powered. Oil to an important role in the manufacture of and the development of helped Allied on most of were in Japanese after The United States the war with a production of over million percent of U.S. production in allowed the U.S. oil almost to fuel not only the U.S. war also that of its In addition, U.S. in provided the U.S. military with such advantages as and needed for Germany and Japan’s to gain secure access to oil was an important in their German fuel production and oil from German control were for wartime to gain control of the oil of the with in the German military vulnerable to oil the the of a the of oil consumption In Allied began fuel and by the end of the war the German war was on The Japanese gained control of the Netherlands East in many of the oil had been and to to production. transporting oil from the East to Japan after to the of U.S. in Japanese late Japan oil with military with growing the of oil U.S. policy Latin and the Middle East and the role of the major oil companies as of U.S. national in foreign oil. In the U.S. government helped a the government and the major oil companies that in a of the the of concessions for and access to new oil production increased and helped fuel the Allied war After the war the U.S. government and the major oil companies with both and in to maintain access to U.S. oil that the Middle East in late of of world oil production is from the to the Middle is to to is in that secure the U.S. in Middle East the to the in Saudi held by Oil of California and the Texas The later the U.S. government and an oil that from the Gulf to the In addition, in and in the U.S. government worked out with Great that would concessions and of opportunity to for new and a to production among the and the Texas to part with their for the the oil industry government in the for the Texas and would from Oil companies whose operations were the oil with Great they the would foreign oil to the U.S. found in and The only foreign oil policy on of the U.S. oil industry was a to Open Door with government to maintaining an international in private companies with security and the development of and oil-powered to military power in the postwar for and most of the world’s oil as did and In addition, new of more oil than its postwar U.S. global and oil. oil helped the United States the Soviet end economic, and military among the within the by economic and access to the and of nations in an of and national part of this the U.S. military a of overseas that allowed the United States to its power into almost of the The necessary for this mainly sea and air power, and were used to maintain access to overseas oil were also dependent on The of oil to U.S. led the to an in the security and stability of the Middle U.S. as a the Soviet Union and U.S. oil interests in the World War and U.S. to after the war The United States and Great out their in the The United States the worked out a that led to Soviet and the of the from oil and the United States during the strengthened the position of the in with the over the role of the in public Although in and U.S. in as part of a Soviet to the Mediterranean and the Middle of oil was from before to in the access to oil was an important part of the the the major U.S. oil companies their position in the Middle East by with other and their British The of great oil was the of the of the Saudi to Oil of and The was a private of production that the development of Middle East oil and its into world The postwar its first with the to the United to in and to the new of in the of the the and the Central that U.S. for the of a in with the provide an for the Soviet Union to extend its power and and to of access to Middle East oil a when the needed for and Japanese the to U.S. the United States from and to the with the of U.S. for the oil companies to maintain a of from government policy and thus the of Middle East oil was to the of the Western Europe a of to wartime overproduction and Soviet into Europe the Soviet Union in control of most of oil reserves as as important of in fuel economic and Western Europe from Soviet the United States to Middle East oil. 10 percent of assistance for oil supplied by U.S. oil companies. the on U.S. reserves most of the oil from the overseas of U.S. oil especially in the Middle East, thus providing companies with for their growing production. Although on Middle East oil increased to in access to essential oil supplies helped the United States its of German economic and into a Western with its to a of German further secure the oil position in the Middle East, the U.S. government arrangements oil companies and The U.S. U.S. corporations for allowing the companies to to the U.S. the of to of the Oil in the of and key of the postwar over Middle East to economic and with the major oil companies. operations were most overseas and the British that in over the of overseas would be In to the impact of British U.S. policy also that U.S. oil concessions in the Middle East and was in and U.S. policy were that the use of to and the of the Moreover, the out during the U.S. policy to the United States the British to reach a that as of position as U.S. to a as did to the to the main of of oil led by and by other major oil companies and by the British and U.S. and government British and U.S. in internal further The end of the War in and the of the U.S. military set in by the war U.S. policy the to more that might the that Soviet was and that the oil was the United States and and a in that and a government to reach an oil on Western After the the United States provided assistance to as the a with government and from foreign oil into world the United States the major U.S. oil the French and in an international to oil Middle East oil U.S. to of the in The was an important of Western in the Middle East and a major of international two-thirds of the oil that from the Gulf to Western Europe through the In addition, control of the and the of the that allowed ships to reach through the Gulf of threatened access to Gulf oil. Although to the the United States that the use of to for would Western position in the Middle and French did In the the by ships in Saudi oil to and and shut the oil from to the was by and by the before the U.S. and amid the Soviet of a in The United States to provide and with British to gain assistance from the to maintain the of the and threatened to economic to the nations their from the of the British and French the U.S. government and the major oil companies to Europe with oil the was and oil from the Gulf to Europe its after U.S. of through the of and that would be in its with and the The the that to Western access to Middle East oil. In that Middle East Europe would be as had been Atlantic to and their through economic and military the an important in the U.S. of Great role as the of Western interests in the Middle In of the the than the from the did not for of the world and have within the and the to Western interests in the region. The of the United and in with the development of that the by the further the of Western access to Middle East oil. In addition, the development of oil fields and the availability of Soviet oil made Western Europe less dependent on oil from the In after the major oil companies had the that were used to how the oil of Iraq, Saudi Arabia, and the of the Although gained power over in the its the of for the of to the economic of the of the major oil-producing by the within the postwar oil U.S. policy during the leading to the or the the of the of the Gulf of as the main for oil from the percent of oil were by oil. The of from in including the of the to the Gulf of threatened access to oil. than U.S. oil interests to the and that would the United States and with the issue on its After a on the main oil oil to the United States, Great and The also the and through the the Gulf oil fields to the oil production in the United States, Venezuela, and the with and oil in made for the The began to after a and by from the were to the 1970s a of political and in the global oil economy threatened U.S. control of world oil. World War the United States its of patterns of socioeconomic organization premised on high levels of oil use. The of the U.S. transportation after as of public transportation and patterns from increased use. Between and U.S. increased from million to over and oil consumption more than In addition, the fleet and increased their of the of oil accounted for percent of U.S. energy Western Europe and Japan were more dependent on oil to their energy use in both and by oil accounted for percent of energy consumption and percent of Japanese energy 80 percent of Western and Japanese oil from the Middle East and consumption during the U.S. oil production in percent of world the United States to of oil to its rose from percent of U.S. oil in to percent in The Middle of world oil production rose from percent in to percent in as the of Middle East oil and production in the the war and in the Middle East and the of the Cold War the of the United States to maintain access to Middle East oil. In the British government the United States that to its military from of by the end of in an war in the United States, following the to to over as of the The was to to the power and of the other of its the United States to Saudi to over the U.S. role of maintaining production that be used to oil in an and help outside the Middle East, the United States to in oil supplies by allowing to and of oil concessions and oil increased and especially in such areas as and the the less dependent on Middle East oil. also in oil and increased of of in and the of the War and the the war, in to U.S. to the of of and Bahrain, and an of oil to the United States and a in oil production. Although Venezuela, and the other of did not the or production and the led to a of oil and economic for most oil allowed to and national oil companies. In less than 10 percent of their oil by they almost of of their oil greater control over such as the of development of their reserves, the of and the of their oil also led to a in oil military and and increased in and The the also of Western and military into of Western and the of the oil and in oil in and in government economic the the the U.S. government was was late to the in The the oil supplies and and led to a of oil The oil of the 1970s of a United States, especially with the U.S. from the a of in the and the Soviet of with the United oil the economic by the United States and the other Western in the especially was by and increased In addition, the oil the of U.S. as a of increased from Western Europe and U.S. to the private and with so high oil to the American way of The Soviet in contrast, from high oil new fields in western the Soviet Union the United States as the world’s leading oil producer in Although most Soviet oil to and from oil to Western Europe and Japan rose and by were for of the Soviet The from allowed the to large of Western and and the of to a that was already in After a the United States was to its through a that to more use of oil with other energy in and from by production their the oil companies to an important role in the world oil economy and among the and most corporations in the The United States also a role in Western access to Middle East oil. that growing Soviet power and World and Western on Middle East oil threatened U.S. Carter on before a of by outside power to gain control of the Gulf be as an on the interests of the United States of America, and such an be by including military Shortly the United States a to this Although Carter made the in the of the Soviet of had been this for In the became U.S. Central a regional military with for the of U.S. interests in the Middle East, and Central Between and in oil consumption in the world and increases in oil production in a of million in demand for oil. oil production and consumption led to a in U.S. oil from percent of in to percent in the by the War in and demand began to oil After to by the Saudi in the of to their position in world by production. than oil a the would be on for in the a for the The new a on rather than and led to a of world oil in Saudi oil had to in increased to in and in Oil from in to in began in and in The Soviet and the of the new government of had power in to use oil to a of Soviet industry and to thus the from a economy to a economy and a more society. oil played an important role in the of the Soviet that the the oil to the of and win the Cold this is is from on the of the available a key and the of Soviet that in the had already that with the threatened their of the of their their and their society. rather than was already the of oil the of social in the Soviet the end of the century, oil accounted for percent of world energy including over percent of transportation energy use. World oil consumption to to the of consumption in developed in the United and economic growth in in and The United States its of patterns of socioeconomic organization premised on high levels of oil oil after many of the of the late 1970s and as use and patterns became more had after The of world oil production to percent in and increased from percent of the U.S. oil in to percent in Although the U.S. military following the end of the Cold a fleet of and and the of in the also that military operations would to be an Maintaining access to foreign especially to the oil resources of the a priority of U.S. foreign the United States only a relatively of its oil from the oil from this played a role in the world oil and the global of world oil meant that would be in not in other of the In addition, control of access to Gulf oil a source of U.S. over its allies as as Maintaining access to Gulf oil was a key of the U.S. to the of in of control of percent of world also Saudi oil would control almost of world they would control resources and gain over the other Gulf In the United States an international military to out of and after the war a to the of Gulf the United States oil development in areas outside the region. to oil a Western Hemisphere oil with and Venezuela, production in and the development of and oil. Although relatively to Gulf oil from its in the world oil economy. In addition, when worked to oil they also to oil and The by a by in for in and to U.S. and world oil The on the the two-thirds of world oil reserves, Gulf and oil companies in had to they the or from production and is not to the role oil played in the U.S. of in is that oil were a The on the United States the of U.S. in the Gulf to Western energy security and provided a political for the United States to U.S. policy that would end the to Gulf security and that to private would have had oil reserves, and production would and U.S. on Saudi also have a on other oil companies and and and the of have U.S. policy from their other In of that access to Middle East “American companies would have to a within the five U.S. oil consumption in was In consumption was and the United States million U.S. public through the of public the of and other the of oil U.S. oil consumption in would have been almost percent with for the U.S. and the that the and economic of world oil U.S. foreign of national security and national were not from the society that they were meant to and economic patterns that high levels of oil use U.S. to maintain access to foreign especially after production to with the growing for oil. The of or the in consumption was to political and economic interests and The oil industry has been one of the most of the U.S. and has in a political that private interests significant on the of public Although the industry was a of and companies and a of large has been a in of role to maintaining an and in private companies with security and In contrast, to demand for oil would a more role for public in the economy and have been and by oil and other the century, on oil had become an economic and and an environmental The of of oil on the U.S. balance of and the economic and of maintaining access to the Gulf and other oil-producing areas most scientists that oil use is a major to global the most important issue facing the United States oil in the century not be how to access to oil to rather how to away from is an Understanding the of oil and the American century is a necessary first in this