What if France found oil in Algeria before ww2

Germany still conquers France in 1940.
The Algerian oil will not be able to reach Germany due the Royal Navy. This might persuade the Italians into having a major naval battle with the Royal Navy which they would lose.
But in Germany's favor France would have larger oil reserves, which Germany would capture. That's going to be bad news for the Soviet Union in 1941/42.

Does it? One of the arguments against further motorization of the French army in the interwar years by its more conservative elements was that oil had to be imported. If instead Algerian oil is available in significant quantities...
 
Not all oil is the same for one (The Saudi stuff is very light and cheap to refine), nore did Albanians or Saudis have access to dollars and other currency reserves with which to reliably but cheaper oil on the international market. What seller in 1930 would accept Saudi currency in payment when all it could buy is stuff from Saudi Arabia?
So basically France did not develop Algeria oil industry because they don’t have incentive to do so ( since they can just import it from the us due to sufficient currency reserve ) so what kind of POD we need to ensure France will invest more into Algeria ?
 
So basically France did not develop Algeria oil industry because they don’t have incentive to do so ( since they can just import it from the us due to sufficient currency reserve ) so what kind of POD we need to ensure France will invest more into Algeria ?

Well, it can't be the result of the economy contracting to the point the Franc based economy can't pull in dollars, since then I doubt there's the capital to invest with. Likely you'd need the US to double down on throwing up trade barriers in the sake of the Depression, isolating their economy from the rest of Europe. Maybe add a clause counting Oil as a War Material that can't be sold to the French once they suspend payment/fall short on their WW I debts. Though, I doubt that's a net posative for French war capacity...
 
So basically France did not develop Algeria oil industry because they don’t have incentive to do so ( since they can just import it from the us due to sufficient currency reserve ) so what kind of POD we need to ensure France will invest more into Algeria ?

A French government less interested in free market development & more in developing national assists?

Looking at the OTL situation in 1942 this gives the Anglo Americans a larger incentive to create a viable GYMNAST operation earlier & execute it to deny the oil. Conversely the Axis can expend effort to protect Algeria, which draws down resources used elsewhere.
 
There would most definitely be some development of Algerian oil by France. While short term there is the need for capitalization developing the oil fields creates employment and not make work employment which is vital. Money paid by French consumers, including the government, to the French national company for Algerian oil is not resulting in a flow of hard currency to the USA or the foreign companies that control Arabian and Persian oil. This money now recirculates in France. Once Vichy surrenders, the oil will be part of reparations for Germany and Italy Doesn't help Japan (prior to PH) as it is too far away and no way to get it to Japan (not enough tankers).

The oil would potentially help Franco, however the food issue still remains and that would take several years even if the Ukraine is conquered and "pacified" to get harvests back up to prewar levels. Unless the Axis is doing better militarily Franco stays out.

I expect the situation between the UK and France is going to get even stickier. The RN is going to be going after tankers bringing oil from Algerian to Europe, no matter what flag (and the USA won't be shipping this oil), and the RAF may attempt to bomb the oil fields, although range and accuracy are going to be against them (not sure if there are any potential airfields existing or that can be built rapidly close enough for UK bombers in 1940-41). Needless to say the RAF bombing the oil fields and the RN sinking French merchant tankers is not going to make Vichy, or Pierre in the street, have a warm fuzzy about the UK on top of Mers-el-Kebir.
 
A French government less interested in free market development & more in developing national assists?

Looking at the OTL situation in 1942 this gives the Anglo Americans a larger incentive to create a viable GYMNAST operation earlier & execute it to deny the oil. Conversely the Axis can expend effort to protect Algeria, which draws down resources used elsewhere.

These can be given by German recognizing a greater interest in Vichy securing it's colonial possessions and the greater threat from the WAllies and thus allowing for a larger Army of Armastice by France and less of an occupation (and thus lighter payments and fewer POWs in Germany), which would only further tilt French opinion towards the (relative to otl) lenient Germans and away from the (relative to otl) belligerent Albion. Torch is liable to be a much tougher go as a result
 
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