How Fuhrer managed energy crisis?

Germany suffers from perennial energy crisis since becoming a great power in the Nineteenth Century. Hitler Era of 1933–1945 was marked by the severity of this drawback. Yet the Fuhrer was able to manage it reasonably well, a lesson to the present ruling coalition.

Introduction

Acquiring and using energy resources augment a country’s geoeconomics status. By 1934, Germany was in the throes of an unprecedented energy crisis. Domestic requirements apart, there was a hiked-up demand due to rapid industrialization. Hitler understood the situation well. Given the position that Germany had only coal as resource, maximising returns from coal and minimizing risk of acquiring oil from outside had to be balanced. This is the first frame.

Second frame requires using both domestic resources and foreign inputs in a manner German military industrial complex functions seamlessly. So a wise geoeconomics strategy must be chalked out. Here is the solution framework by Hitler in two prongs: Acquiring resources & managing resources.

Acquiring resources

1. Coal liquefaction using Fischer-Tropsch Process was popularised and a network of factories were established especially by mandating I G Farben to convert coal to synthetic fuel. At one point this source alone supplied more than 90% of energy needs of the nation. Surprisingly, the end-product was also used as air-fuel in addition to powering vehicles and firing domestic furnaces.

2. Acquiring energy resources on a long term contract was chosen as the second prompt in the energy security matrix. The Fuhrer, in fact, travelled to Bucharest, the Imperial Capital of Romania where he met with King Carol II to sign up the deal. Although the monarch wished to be neutral rather than be allied with Germany, the fact that there is not much of the demand for crude from Ploiesti Field by others prompted him to sign up with Fuhrer.

3. Diversifying energy acquisition was attempted in two specific ways:

a) By friendly persuasion: - under the Molotov- Ribbentrop Pact crude was obtained from Russia

b) Using hostile action: - Hitler despatched the Wehrmacht to Caucasus region centred in and around Baku to get the requisite crude. 

Managing resources

The Fuhrer ingenuously arranged a system where quantum of fuel be apportioned for military use and the remaining part for domestic and personal uses. Expectedly, military use was prioritised and a system of rationing was implemented in a graduated manner for personal use where supply of oil for domestic furnaces was preferred over the allowance granted for vehicular needs.

This strategy worked very well until the break-out of the Second World War. The rest is history. What marvels me, is the ingenuity of the Fuhrer in designing this successful acquiring & managing resources framework.

Navigating strategy amid geoeconomics, the Fuhrer was able to solve the energy crisis. Simply put, the present government must follow it.

 

Cheers!

 

Muthu Ashraff

Strategy Adviser

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Strategy Adviser