Striking the Balance: Intervention versus Non-intervention in Britain's Oil Policy, 1957–1970

Abstract

This article focuses on attempts by the British Government to reexamine and recalibrate its oil policy following the Suez Crisis until the election of the Conservative Government of Edward Heath in 1970. It argues that despite a long-term strategy of non-intervention in the affairs of Britain's two domestically-based oil companies, British Petroleum and Shell, repeated Government attempts to increase the effectiveness of its oil policy in meeting its twin goal of security of supply and profitability to the British economy led to a gradual increase in state intervention in oil matters. The unintended consequence of this process was the deterioration of relations with BP and Shell, leading to the breakdown of Britain's traditional approach of allowing the firms to handle oil matters independently.