Would Italy have been involved in WW2 if they had Libyan oil?

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Italy as a Petro-State

Italy As A Petro-State
Part Two - The Italian Economy After Italy Becomes A Petro-State

Extract from Rise and Fall of the Great Powers, by Paul Kennedy,

Finally in the light of Mussolini's evident eagerness to go to war against France and sometimes even France and Great Britain combined, it is worth noting that Italy remained embarrassingly depended upon imported fertiliser, coal, oil, scrap iron, rubber, copper and other vital raw materials - 80 per cent of which had to come past Gibraltar or Suez, and much of which was carried in British ships. It was typical of the regime that no contingency plan had been prepared in the event of these imports ceasing and that a policy of stockpiling such strategic raw materials was out of the question, since by the late 1930s Italy didn't even have the foreign currency to cover its current needs. This chronic shortage also helps to explain why the Italians also could not afford to pay for the German machine tools so vital for the production of the modern aircraft, tanks, guns and ships which were being developed in the years after 1935 or so.

In this version of history Italy becomes self-sufficient in oil between 1930 and 1935. This includes converting the parts of the Italian economy that ran on coal to oil and by 1935 the only coal Italy imports is coking coal for the steel industry. I don't know enough about the chemistry, but if Libya had right kind of oil, Italy would also be self-sufficient in fertiliser and rubber. Self-sufficiency in oil, fertiliser and rubber would save more foreign currency. I don't know by how much, but for the purposes of this essay it is enough to considerably increase their imports of other raw materials to increase the output of Italy's manufacturing industry in peace and also to build up larger war reserves.

The Italians double the size of their merchant marine between the middle 1920s and 1940. This has nothing to do with the early discovery and exploitation of the Libyan oil, its because I think it is something the Italians should have done regardless. The primary objective of this is to make Italy self-sufficient in merchant shipping during the course of the 1930s and use the foreign currency saved to import more raw materials. The second goal is to increase the capacity of the Italian shipbuilding industry.

Extracts from the Regia Marina website:

In 1926, a law aimed at modernising the merchant fleet resulted in the construction of passenger liners, some of them highly prestigious, but the cargo fleet had not been upgraded.

During the Ethiopian War, shipping companies snatched up a large number of old tubs, bought abroad, to meet the Army's replenishment needs: so there were many ships, but all old and of poor quality.

The state of the Merchant Marine was reviewed after the conquest of Ethiopia and the Spanish adventure, and found to be poor. Therefore, provisions were made to renew cargo fleet, trying to avoid the pitfalls of the past. These provisions were set down with Royal Decree no. 330 of 10 March 1938.

The act provided incentives to shipyards and shipping companies, with an annual allocation of 103 Million Lire for ten years with the goal of building 2,500,000 gross tons of merchant ships. Italian shipping companies ordered about 50 ships right away, and almost all Italian shipyards were involved.

The Regia Marina website says the merchant marine had nearly 800 hulls of over 500 tons, gross totalling 3,300,000 tons and about 200 ships of 100 to 500 tons. [Italy had a merchant marine of 3,300,000 GRT on 30th June 1938 according to the Encyclopaedia Britannica Book of the Year 1939.] About 200 ships of 1,200,000 tons were outside the Mediterranean in June 1940, almost all of them were sunk or captured by the enemy. About 200 ships of 800,000 tons were completed between June 1940 and September 1943, but 460 ships of 1,700,000 tons were sunk over the same period.

Here the POD is the 1926 Law, which also provides for a large expansion of the cargo fleet. By June 1940 the Italian merchant marine has nearly 1,600 hulls of over 500 tons, gross totalling 6,600,000 tons and about 400 ships of 100 to 500 tons. All other things being equal twice as many ships, i.e. about 400 of 2,400,000 tons would be outside the Mediterranean in June 1940 and almost all of them would be sunk or captured by the enemy. Partly because of the stock piles of iron ore and coking coal the Italian shipyards would have completed twice as many ships between June 1940 and September 1943, that is about 400 of 1,600,000 tons between June 1940 and September 1943. However, their merchant ship losses over the same period might be less than the 460 of 1,700,000 tons lost in the real world.

Ideally all the extra ships would be built in Italian shipyards from Italian steel. However, it would take time for Italian shipbuilding and steel industries to double their production capacity. Before about 1935 this means importing more steel and more new ships abroad. This would mean spending even more foreign currency in the short term. However, Italian invisible earnings will increase as the Italian merchant expands and after 1930 there would be a further improvement in the Italian balance of payments as oil production builds up. Furthermore the Depression means there would be plenty of American steel works and British shipyards desperate for work so their prices might be lower.

Self-sufficiency in oil allows the Italian Government to encourage car ownership and expand the road transport sector so that by 1938 there are twice as many cars and lorries on Italian roads. There would be an increase in imports for a few years while the supply of Italian motor vehicles caught up with the increase in demand, but Italy has the extra foreign currency to pay for them.

However, if Italian motor vehicle production for 1938 was doubled to 118,000 cars and 24,000 commercial vehicles it is still well behind France (182,400 cars and 45,000 C.V.s) and Germany (205,100 cars and 55,700 C.V.s). Italy would be even further behind Great Britain which produced 341,000 passenger cars and 103,800 commercial vehicles in 1938.

If the number of licensed road vehicles at the end of 1937 was doubled, Italy would have, 636,000 cars, 216,000 lorries and 357,000 motor cycles. However, France had a total of 2,200,000 motor vehicles licensed on 31.12.37 of which 558,000 were commercial vehicles. Germany had 1,108,433 passenger cars, 320,016 lorries, 17,294 buses and 1,327,189 cycles licensed at 01.07.37. Great Britain had 1,944,394 cars, 87,730 hackney vehicles (taxis, buses and coaches), 590,397 commercial vehicles and 462,375 motor cycles licensed at 30.09.38 a grand total of 3,084,896 motor vehicles.

A secondary reason for the drive to motorise the Italian economy was so that the land needed to grow the fodder for the horses could be used to grow food for people instead and therefore reduce food imports. The Italians would also double their production of agricultural tractors and other farm machinery. However, the only statistic I have on this is that Italy produced 628,200 metric tons of oats in 1937. I don't now much that could be decreased by in this version of history if there were fewer horses to feed.

According to my sources Italian steel production fell from 2.1 million tons in 1929 to 1.4 million tons in 1932 and then climbed back to 2.2 million tons in 1935. So Italy might have been able to build up the oil industry, its supporting infrastructure and more merchant shipping in the first half of the 1930s without having to import steel. Production fluctuated at between 2.0 and 2.3 million tons for the next 3 years. It jumped to 3 million tons in 1939 and fluctuated between 2.8 and 2.9 million tons for the next 3 years before plummeting to 1.1 million tons in 1943. [Source, Encyclopaedia Britannica books of the year. The 1929 to 1937 statistics are in short tons, but after that they are a mix of short tons and metric tons.]

Italy's next priority would be to treble steel production from the 2 million tons produced in 1929 to 6 million tons in 1939, rather than the 50% increase of the real world. Like the expansion of the merchant marine and the motorisation project this has noting to do with the earlier discovery of the oil other than it makes it possible to import the required raw materials. If the Italians can't build the blast furnaces and other paraphernalia itself it imports whole steel works from the Americans who do have the industrial capacity to do it and because it was during the Depression the American firms would be glad for the work. This is also how the Italians increase the capacity of their motor manufacturing industry and they learn American mass production techniques as a useful by product.

In the real world the Italian Government was forced to barter arms that were badly needed for its armed forces for raw materials. For example in 1940 it sold 4 destroyers and several hundred aircraft to Sweden in return for iron ore. In this version of history the Italians would have built up an even bigger arms industry and some of this would be used to make more barter agreements. One possibility is that it bartered 55 fighters and some oil to Sweden for iron ore in place of the 55 British Gloster Gladiators it bought in the real world. Another is to barter one cruiser, 12 destroyers and some oil to Argentina in exchange for beef in place of the cruiser and 7 destroyers (the Argentines wanted 12) they bought from the British. Brazil bought 6 British destroyers just before the war in the real world, here the Italians might get the work by bartering ships and oil for Brazilian rubber.

Libya was very vulnerable to air attack and invasion from the British in Egypt and the French in Tunisia. These nations also had a strong navies in the Mediterranean. Therefore the Italian Armed forces build up a bigger stockpile of oil in Italy than they did in the real world. That is it was sufficient to satisfy their estimated requirements for a 2-year war with Great Britain and France. The Italian Economics Ministry also builds up its own stock of oil so that it can keep the civilian economy running for two years if the supply from Libya was cut off. It was also able to build up larger stockpiles of other raw materials that were likely to be hard to obtain in the event of a long war.

Therefore by June 1940 Italy has a merchant marine twice the size of the real word; a shipbuilding industry double the size of the size of the real world; a steel industry twice the size of the real world; a motor industry twice the size of the real world and much bigger stockpiles of raw materials. I did want to build up an even bigger steel industry with quadruple the production and a motor industry with quintuple the production, but I thought that was pushing it too far.

The Italian arms industries including naval shipbuilding and the aircraft industry will be covered in Part 3.
 
Italy As A Petro State

Italy As A Petro-State
Part Three - The Italian Armed Forces and Arms Industry
The Regia Navale​
There are some qualitative improvements to the Regia Navale before June 1940. Some of this isn't because Italy is self-sufficient in oil, it is wishful thinking by me. And it involves spending more money, which because of the oil and industrialisation programmes might be hard to find even if Italy is richer in the long-term.

8 Zara class heavy cruisers are built in place of 3 Trento and 4 Zara class so there were 8 satisfactory heavy cruisers in June 1940 instead of 4 and 3 "tin cans".

4 Montecuccuoli class light cruisers are built instead of the Giussano class; which in turn leads to 2 Duca D'Osta class being built in place of the 2 Cardona class; then a pair of Abruzzi class are built in place of the Montecuccoli class; 2 Ciano class were built in place of the Duca D'Osta class; and finally 2 improved Ciano class would be built in place of the Abruzzi class; so there were 12 satisfactory 6" cruisers in June 1940 instead of 6 and 6 "tin cans".

8 Maestrale cass destroyers are built instead of the Freccia and Folgore classes. 56 additional Maestrale class destroyers were built before the war in place of the 20 Meastrale-Oriani-Soldati class, 4 Pegaso class torpedo-boats and 32 Spica class torpedo-boats built before the war in the real world. Therefore the total number of destroyers and torpedo-boats in service in June 1940 is 126, but the mix is considerably different. In the real world there were 59 destroyers, 33 old torpedo-boats and 34 new torpedo-boats. In this version of history there were 93 destroyers and 33 torpedo-boats, because 4 Sella class destroyers were sold to Sweden instead of 2 Sella and 2 Spica class.

Therefore the total number of ships built for the Regia Navale between the wars was increased by one cruiser. However, the Italian naval shipbuilders would have captured a larger slice of the export market. That was in part because the Italian Government made some trade deals in which warships and oil were bartered for raw materials.

After war was declared more steel works, more iron ore and more coking coal allows the Italians to complete the battleship Impero, the 2 light cruisers ordered by Siam, 12 Capitani Romani class and 16 Soldati class destroyers between June 1940 and September 1943. In the real world the did not complete the Impero or the Siamese cruisers and only managed to finish 3 Captiani Romanis and 5 Soldati class.

More steel allowed 64 Soldati class to be laid down in place of the 16 Ciclone and 16 Ariete class begun in the real world and 32 were completed by September 1943 instead of 16. They would also begin 18 D'Oro class destroyers before September 1943 but none of them were completed. 120 Gabbiano class corvettes would be ordered instead of 60 and 58 were completed by September 1943 instead of 29.

Italy had the same number of submarines in service in June 1940 and there were no qualitative improvements. However, double the number of submarines were under construction at the outbreak of war and twice as many were laid down between then and September 1943. The number completed over this period was doubled from 30 to 60.

Italy does not build any aircraft carriers before June 1940. It still begins the conversion of two liners into aircraft carriers during the war. They might be completed before September 1943 in this version of history, but in spite from help from the Japanese they never become operational.

The Regia Aeronautica​
The Regia Aeronautica of June 1940 would not be any bigger in this version of history. However, the Italian aircraft industry would be able to build more aircraft between then and September 1943 and the Italians might be able to barter some of their oil for more aircraft from Germany. Italy trades some of its oil and its air launched torpedoes with Germany for licences on German aero engines and aircraft guns earlier than this was done in the real world.

As a result all the Fiat C.R.42s built are the DB601 version, the Fiat G.52 is built instead of the G.50, the M.C.202 is built in place of the M.C.200 and the early Re 2000 family fighters have more powerful engines. Then the 5-Series of fighters with licence built DB605 engines was built instead of the 2-Series so for example the M.C.205 was built instead of the M.C.202. In turn the 7-Series of fighters with licence built DB603 engines was built instead of the 5-Series aircraft built in the real world so the M.C.207 was built instead of the M.C.205. There was a similar improvement in the quality of Italian bombers.

As Italy has a much bigger oil industry and American firms are managing it for them there is a possibility that the Regia Aeronautica might have access to higher octane aviation fuel as well as more of it.

The Italian Army​
The Italian Army would be exactly the same size in terms of personnel, the number of formations and the types of formations. However, there might be some improvements in the quality of the equipment and a greater degree of motorisation. Therefore there were still 73 divisions (3 armoured, 3 fast, 6 alpine, 2 motorised infantry and 59 standard infantry) in June 1940, plus the frontier guard troops which were the equivalent of 9 divisions. 21 new divisions (4 armoured, 3 infantry, 3 parachute, one air landing and 10 training) were still formed between then and September 1943.

Doubled motor vehicle production allowed the Italian Army to buy twice as many mechanical transport vehicles. However, instead of using them to form more armoured, fast and fully motorised divisions they were used to convert more standard infantry divisions into "motor-transportable" divisions. 3 of the 59 infantry divisions were "motor transportable" in the real world. In this version of history there were 14. During the war 3 of the existing infantry divisions were fully motorised and another 2 were partially motorised, but in this version of history the doubled MT output allows them to double this. Further more the 3 infantry divisions formed during the war were partially motorised, so in this version of history the Italians have the resources to fully motorise them or partially motorise another 3 standard infantry divisions. The amount of MT in the Italian Army's corps, army and lines-of-communications troops would also be doubled.

The Italians would also be able to double their output of tanks and armoured fighting vehicles after 1933. However, they would actually build a smaller number of heavier vehicles. That has nothing to do with the economic improvements brought about by the exploitation of the Libyan oil. It is wishful thinking by me.

Italian tank development up to the early 1930s would be the same as the real world. However, instead of the L3 series of the real world an equal number of 6-ton tanks were built for the Italian Army, but the L3 might still be built for export. These tanks designated L6/33 and L6/35 would be double the specification of the real L3 tanks that is twice the weight and an engine that was twice as powerful and might actually be better than the L6/40 of the real world. The Italian Army would have 1,320 of them in June 1940 and although they were obsolete the chassis found a second lease of life because they were converted into AFVs and logistics vehicles. For example in the real world some L3 light tanks were fitted with 20mm guns and in this version of history they could be fitted with 47/32 anti-tank gun.

Rather than place an initial order for 1,166 L-6/40 light tanks (double the initial order of the real world) the Italian Army instead orders 583 extra M15/40 tanks, but all the 714 chassis that were built (according to Ness in Jane's World War II Tanks and Fighting Vehicles) would be completed as Semoventi 75/34 self-propelled anti-tank guns.

Instead of the real M-series the Italian Army ordered a series of tanks that were twice the weight. They had a 3-man turret fitted with a 75mm gun. Effectively an improved P26/40 and on paper it would be superior to the German Panzer IV because it had more powerful engines and its hull had a better shape. 534 self-propelled assault guns and 124 command vehicles based on the improved P26/40 would be built between 1941 and July 1943 instead of the M-series vehicles of the real world. However, the bigger chassis probably allowed a bigger gun to be fitted. Therefore all the vehicles with 75/18 howitzers of the real world had the 105/25 and the 30 vehicles of the real world might with that weapon might have an even larger gun; the vehicles armed with the 75/34 anti-tank gun in the real world had the 90/53 weapon here; and in turn the 30 vehicles fitted with that gun in the real world had an even heavier anti-tank gun, but in common with the real world the heavier gun might overload the chassis. As they were based on an improved on the improved P26/40 the Semoventis of this version of history would on paper appear superior to the Panzer III and IV based stugs and jagdpanzers. They had more powerful armaments, more powerful engines on about the same weight and their hulls had a better shape than the stugs.

Instead of the real P26/40 the Italians would build an equal number of 52-ton tanks. It looked like an enlarged P26/40 with a 3-man turret, fitted with a 90mm gun or if that would not fit a long 75mm. On paper it looked better than the Tiger I. It was 5 tons lighter with more powerful engines, which might mean would be more mobile than a Tiger I. The P52/40 might have thinner armour than the Tiger I, but that might be offset by its superior hull shape. However, it would not enter service before September 1943 and the self-propelled gun based on the P52/40 instead of the P26/40 is not ready by then either.

Italy built twice as many armoured cars and carriers after 1930. Therefore 110 Lancia 1ZM were still left from World War One, but 92 Fiat 611 were built in the middle 1930s. 4 AB39 prototypes were followed 96 AB40 and 1,248 AB41. 600 Lince armoured cars were ordered, but none were delivered before September 1943. The Italians also build twice as many prototypes of the Cingoletta 2800 carrier, but it did not go into production.

The Italian Army's stockpile of tanks in June 1940 in the real world was 1,320 L3, 127 Model 21 and Model 30 and 100 M11/39 vehicles. In this version of history it would have been 1,320 six-ton tanks, 127 Model 21 and Model 30 and 100 P22/39. This improvement in quality rather than quantity had nothing to do with the Libyan oil, it is wishful thinking by the author of this essay. The stock of armoured cars would be 34 Lancia 1ZM, 96 Fiat 611, 4 AB39 and 48 AB40 due to a doubling of production after 1930.

Italy designed artillery pieces that were as good if not better than anyone else's in the real world, but could build enough of them. In this version of history production of guns (and ammunition) was doubled because there was more steel and improved labour productivity. However, as the difference between production and requirements was still very large the Italian Army's artillery arm would still be largely equipped with obsolete weapons. For exampled 1,180 of the Gun 149/40 Modello 35 was would have been ordered before Italy entered the war but only 100 would be in service by September 1941. Orders for the Gun 149/19 Modello 41 heavy howitzers were doubled to 2,784, but only 300 were delivered by September 1943. 688 Guns 210/22 Modello 35 would be ordered by 1940 but only 40 were in service by September 1942. Orders for the 90/53CA anti-aircraft gun were doubled to 3,664 of all versions, but only 1,078 of all types would have been delivered by July 1943.
 

Paul MacQ

Donor
As a side note the Technology to get to the Oil in Libya was available to another Country Romania. a sometimes Fascist state that had Italy as a major trading partner

http://furcuta.blogspot.co.nz/2009/10/romanian-petroleum-history.html .

1908 Romania was Drilling to Depths needed and through Harder Rock.

Several of the Locations of Libya's oil have had water drilling too greater depths.

The idea of that Texas has the only tech to exploit the Oil in Libya has been debunked several times. The arguments have often been interesting Seem Bill the interesting Poster had an amazing detail of Texas/US oil industry. Though Romanian exploits seem to have eluded him.

Daqing field China shows an interesting example of finding oil when not looking for it.

The Following thread was fun years ago.

https://www.alternatehistory.com/discussion/showthread.php?t=175545&highlight=Deep+Oil&page=4


Quoting self from
https://www.alternatehistory.com/discussion/showthread.php?t=330719&highlight=Deep+Oil.


This has been done over a several time and proven to be wrong regards Oil extraction I will try and find the details in an old Dale Cozart thread. US is not the only country that can get deep oil is a Myth. The mention the likes of March 1929, the Daisy Bradford No. 2 at over 2000 ft and it's failing and the likes of H.L. Hunt, and his explorations and explotation in East Texas. Libya has oil in areas traditional not looked at for exploration.

Part of " How advanced the US was in oil exploration is in part relates to 1930s propaganda. For sale of equipment and Oil expertise. "

Nice little read for Texas Oil exploration is
http://www.texasranger.org/E-Books/History_of_the_East_Texas_Oil_Field_(Silvey).pdf

Romania in 1934 Getting oil at 3300 Meters (10827 feet)
1934 - The company’s Creditul Minier oil well number 1, at Chitorani, had reached a depth of 3300 m (1934), taking the second place in the world, being at a distance of 158 meters from General Petroleum Corporation’s oil well from California, oil well with a record depth of 3458 meters. (“The world’s deepest oil wells“, article from Moniteur du Petrole Roumain, nr. 17/1938, page 1085). - See more at: http://furcuta.blogspot.co.nz/2009/10/romanian-petroleum-history.html#sthash.pPclYWvg.dpuf

Sirte basin Oil
The Truly massive Sirte Oil field is at 9000 feet (2743 m) and some history of OTL explotation of it
http://www.searchanddiscovery.com/documents/sarir/images/sanford.pdf

Quoting old Thread https://www.alternatehistory.com/discussion/showthread.php?t=58157&highlight=Libyan+Oil

Oil was actually discovered in Libya by Ardito Desio, an Italian geologist who was very active in the exploration and the mapping of Libya from 1926 to 1940. Pity that it was already 1938, and that the first oil wells were located at the oasis of Marada, and not in the main basin of the Sirtis.
Exploration and drilling in the Sirtis was actually started by AGIP (Italian State Oil Company) in 1932, again upon recommendation of Desio. The perforation were unfortunately unsuccessful, since the Sirtis oil is quite deep: the drilling technology employed by AGIP could not go deep enough.

Interesting charactor http://en.wikipedia.org/wiki/Ardito_Desio

So possible and not too ASB for Italy
 
As a side note the Technology to get to the Oil in Libya was available to another Country Romania. a sometimes Fascist state that had Italy as a major trading partner

http://furcuta.blogspot.co.nz/2009/10/romanian-petroleum-history.html .

1908 Romania was Drilling to Depths needed and through Harder Rock.

Several of the Locations of Libya's oil have had water drilling too greater depths.

The idea of that Texas has the only tech to exploit the Oil in Libya has been debunked several times. The arguments have often been interesting Seem Bill the interesting Poster had an amazing detail of Texas/US oil industry. Though Romanian exploits seem to have eluded him.

Daqing field China shows an interesting example of finding oil when not looking for it.

The Following thread was fun years ago.

https://www.alternatehistory.com/discussion/showthread.php?t=175545&highlight=Deep+Oil&page=4

Quoting self from
https://www.alternatehistory.com/discussion/showthread.php?t=330719&highlight=Deep+Oil.
Very interesting. What were relations like between Romania and Italy at the time?
 

Deleted member 1487

Very interesting. What were relations like between Romania and Italy at the time?
Very good, Romania didn't want to be allied to Germany and tried to work out a deal with Italy when France proved to be worthless as an ally, but when the Soviets came knocking and Hungary took advantage of their weakness and Italy allied to Germany, the Axis was the only game in town; now the big issues is that Romania was still allied to France in the 1920s-30s until Munich demonstrated what France was worth to the Little Entente, so I don't know if the Romanians want to enable a non-ally develop a far larger oil production then they have and pretty much take away the value of their one significant resources for export.
 
Very good, Romania didn't want to be allied to Germany and tried to work out a deal with Italy when France proved to be worthless as an ally, but when the Soviets came knocking and Hungary took advantage of their weakness and Italy allied to Germany, the Axis was the only game in town; now the big issues is that Romania was still allied to France in the 1920s-30s until Munich demonstrated what France was worth to the Little Entente, so I don't know if the Romanians want to enable a non-ally develop a far larger oil production then they have and pretty much take away the value of their one significant resources for export.
That's true. What do you think it would take for the Romanians to help the Italians out.
 

Paul MacQ

Donor
1923 Giovanni Agnelli, god Father of FIAT was looking outside the boarders of Italy for engineering prospects to diversify the massive conglomeration he now controlled. Coming across his desk mentioning Romanian Concordia Company was looking for make a deal with Czech and or German Companies for static engines in the Oil drilling field. Also with his Political connection knew of Italian governments water push for water drilling in Libyan colony. Never to be one to let a Machiavellian plan slip by, slips in Fiat representative in to make a deal that nobody could refuse. So was born the Drilling services latter Oil exploration division of Fiat that could not refuse to have as many fingers in as many Pie’s as possible. :D
 
If oil was found in the 20's isn't there a need for Benny to connect that windfall to him and the fascists, before oil wealth has a positive impact on the larger Italian economy? If the money flows into Italy and there's no apparent connection to the Fascists, the the Italians might see Benny as irrelevant to the accumulation of wealth, and then he loses political traction. If the idea of that oil wealth is psychologically connected to Benny & the Fascists, he's looking good - as long as the money flows too. I realize that finding oil and reaping it's financial gain is not an overnight thing, and that it requires significant upfront investment.

As BlondieBC notes above, the technology and financing would be needed to get the oil and money flowing. Did Italy require outside help on both counts? Who had the know-how back then and available cash AND would stand to gain by partnering with the Italians? In the 1920's, it wouldn't be the Germans. The Americans had plenty of oil in their back yard, but maybe. What about the British & French?

The British built the Abadan refinery in 1912, which was then one of the world's largest refineries (and my Great-Uncle Horace worked there in the 30's) and later built the Kirkuk-Haifa pipeline. So there is British expertise there.
 
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