Oil and Military Effectiveness
This chapter discusses the military value of oil and traces its origins to the historical transformation from coal to oil as the major military fuel during World War I. Oil's superiority over coal was made clear by the conduct of the war, and by its end, all of the major powers understood that oil coercion had emerged as a major international threat. Even countries that lacked oil had no choice but to adopt oil-fueled military technology because coal related transportation was no longer competitive. The chapter then explains how oil deprivation influenced Japan's decision to surrender at the end of World War II in the time and manner that it did. The case illuminates in empirical detail the military devastation inflicted by the Allied blockade, which completely severed Japanese oil access.