oil addiction

[Terrance]

MalignD at aol.com wrote:
> 
> << And of course how Germany manufactured alternative fuel plays a huge
>  role in GR.   >>
> 
> One thing that Sasuly mentions was IG Farben, before the war, inviting
> representatives from Standard Oil NJ over to Germany to show the Americans
> their newly developed technology for deriving oil from (if I remember
> correctly) shale and allowing the Americans (incorrectly) to assume that this
> could be done on a fairly large scale (it could not).

The idea that Germany could produce a competitive alternative from coal
(much more abundant than oil) was all that was needed. But, if the
alternative was too expensive or if the oil companies could drive the
price of oil down, hydrogenation would not (again, elasticity) be such a
huge threat. At least not to  oil company sales outside of Germany. Of
course Germany would be permitted to prepare for war.  Contracts  were
signed by IG and SONJ. SONJ took control of hydrogenation in the USA
(the method), retarding its development in the USA,  and oil prices were
pushed lower. 
The alliance was a success. RD Shell (I.H.P.), others,  was brought in
to the alliance. 
SONJ supported IG in its chemical business world wide and put the USA is
a very dangerous position---the synthetic rubber deals you note below. 
 




> 
> Fearful of losing the European market, Esso offered the IG co-patent
> contracts on Esso's synthetic (buna) rubber in return for not developing the
> shale oil on a greater scale, which the clever Germans couldn't do anyway.
> One consequence of this was, with the US entering the war and sources of
> natural rubber scarce, Esso's being reluctant to produce buna rubber for the
> mobilization effort, lest it harm it's relationship with IG.
> 
> Even patriotism has its limits.

"At least Standard Oil tried to keep its  cartel with IG alive, war or
no war." Sasuly

And

America's war effort was nearly paralyzed by shortages of essential raw
materials. The most dangerous shortage of all was rubber." 

Of course P includes this in GR. 

"From its birth IG Farben had been at war with the
rest of the world, with the United States as a main
target."
                Sasuly, IG Farben, Chapter 11, "Ending? -- U.S.A."