ABSTRACT

The US oil companies had been actively seeking markets in Europe since the end of World War II. The experience of the pre-war years testified to the importance of this link between fuel oil prices and market penetration. The actual acquisition costs of the integrated refiners that is those owned by the international oil companies, were equal to the tax-paid costs, consisting mainly of production expenses, tax and royalty payments plus transport and other charges. The oil companies probably viewed their theoretical losses from reduced refining margins as investments designed to generate greater future income. Dismissing the balance-of-payments concerns of the earlier reports, Robinson looked to the Sahara as a major source of oil imports. The rules of the game', which were adopted in varying degrees by all the European Organisation for Economic Corporation and Development (OECD) countries, were designed to favour oil.