The Petroleum Board was a non-governmental organisation, established at the outbreak of
World War II
World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...
, to coordinate wartime supplies of petroleum and petroleum products throughout the United Kingdom. It was composed of senior executives of the major oil companies who operated an ‘oil pool’ with distribution controlled by the Board. The board was dissolved in June 1948 nearly three years after hostilities ended.
Background
In the inter-war period the strategic planning of the UK's oil supplies in the event of war was the responsibility of the Oil Board. This was established in 1925 as a sub-committee of the
Committee of Imperial Defence.
By the late 1930s the Oil Board's preparatory work for war was focused on potential sources of supply particularly from the Middle East, and Central and South America, together with practical issues of tankage and storage. The Oil Board planned that wartime petroleum was to be operated on the basis of an ‘oil pool’ with production of petroleum from individual companies pooled and then controlled and distributed by a Petroleum Board.
Following the establishment of the Petroleum Board the functions of the Oil Board were subsumed in the Petroleum Department (
Secretary for Petroleum
The position of Secretary for Petroleum is a now defunct office in the United Kingdom Government, associated with the Board of Trade.
In 1929, the Secretary for Mines (now also defunct) took over responsibility for petroleum.
In 1939 the Petroleu ...
) of the
Board of Trade.
Operations
The Petroleum Board was established within a week of the outbreak of the Second World War in September 1939. It was based in
Shell Mex House
Shell Mex House, also known as 80 Strand, is a grade II listed building located at number 80 Strand in London, England. The building was opened in 1932 on the site of the Hotel Cecil and stands behind the original façade of the hotel, between ...
on the
Strand, London
Strand (or the Strand) is a major thoroughfare in the City of Westminster, Central London. It runs just over from Trafalgar Square eastwards to Temple Bar, where the road becomes Fleet Street in the City of London, and is part of the A4 ...
. The membership comprised the Chairmen or Chief Executives of most of the petroleum and oil companies operating in the UK. The original corporate membership was the
Anglo-American Oil Company
Esso () is a trading name for ExxonMobil. Originally, the name was primarily used by its predecessor Standard Oil of New Jersey after the breakup of the original Standard Oil company in 1911. The company adopted the name "Esso" (the phonetic ...
, the
National Benzole
National Benzole was a petroleum brand used in the United Kingdom from 1919 to the 1990s. In 1957, the National Benzole Co. became wholly owned by Shell-Mex & BP (through British Petroleum) but continued its separate trading identity. In the ea ...
,
Shell-Mex & BP
Shell-Mex and BP Ltd was a British joint venture between petroleum companies Royal Dutch Shell (Shell) and BP. It was formed in 1932 when both companies decided to merge their United Kingdom marketing operations,Reference and contact details: GB ...
, and Trinidad Leaseholds and their associated companies.
Other oil companies joined the Board later. The aim of the board was to oversee the import, processing, storage, distribution and delivery of all petroleum products in the UK with the exception of oil for the
Royal Navy
The Royal Navy (RN) is the United Kingdom's naval warfare force. Although warships were used by English and Scottish kings from the early medieval period, the first major maritime engagements were fought in the Hundred Years' War against F ...
. Supplies of petroleum and petroleum products were no longer branded and competition between the oil companies was suspended.
The board was acknowledged to have been effective.
The success was claimed to be largely due to the Board's Chairman, Sir Andrew Agnew, who had extensive knowledge of the oil industry and commanded respect within it.
Sir Andrew was Managing Director of
Shell Transport and Trading. In 1940 with most of the east coast and
English Channel
The English Channel, "The Sleeve"; nrf, la Maunche, "The Sleeve" (Cotentinais) or ( Jèrriais), (Guernésiais), "The Channel"; br, Mor Breizh, "Sea of Brittany"; cy, Môr Udd, "Lord's Sea"; kw, Mor Bretannek, "British Sea"; nl, Het Kana ...
ports closed by enemy bombing there was congestion of shipping at the west coast ports in
Bristol Channel, the
River Mersey
The River Mersey () is in North West England. Its name derives from Old English and means "boundary river", possibly referring to its having been a border between the ancient kingdoms of Mercia and Northumbria. For centuries it has formed part ...
and the
River Clyde
The River Clyde ( gd, Abhainn Chluaidh, , sco, Clyde Watter, or ) is a river that flows into the Firth of Clyde in Scotland. It is the ninth-longest river in the United Kingdom, and the third-longest in Scotland. It runs through the major cit ...
. The amount of petroleum being imported was limited to pre-war levels.
The Petroleum Board addressed these logistical issues and achieved a doubling of oil import by the summer of 1941.
Also during the fuel crisis during the winter of 1940-41 there were few problems with the distribution of petroleum. The board made arrangements to use oil barges and ‘block’ trains to transport oil.
In 1941 there were reports in the press concerning rationing of petrol that had incorrectly identified the Petroleum Board as being the authority responsible for rationing.
This prompted the chairman of the Petroleum Board, Sir Andrew Agnew, to write to the press to assert that the Board was not responsible for rationing. He pointed out that this was the responsibility of the Petroleum Department of Board of Trade, and the
Ministry of War Transport
The Ministry of War Transport (MoWT) was a department of the British Government formed early in the Second World War to control transportation policy and resources. It was formed by merging the Ministry of Shipping and the Ministry of Transport ...
.
Post-war coordination
The original agreement, made when the Petroleum Board was established, provided for its dissolution no more than two years after the state of emergency ended. The oil companies also wished to return to individual marketing and claimed that the continuation of pooling was frustrating the development of distribution.
In August 1947 the
Minister of Fuel and Power
The Ministry of Power was a United Kingdom government ministry dealing with issues concerning energy.
The Ministry of Power (then named Ministry of Fuel and Power) was created on 11 June 1942 from functions separated from the Board of Trade. ...
announced that the Petroleum Board would be dissolved on 31 December 1947. The war-time pooling arrangements had been retained long after most countries had returned to commercial supplies.
In the event the Petroleum Board was dissolved on 30 June 1948. However, the individual companies agreed not to introduce branded products for at least six months. In Parliament the Minister of Fuel and Power acknowledged the ‘government’s appreciation of the great wartime services ... by the Petroleum Board ... and to thank all members and staff ... for the valuable work they have done’.
To continue coordination of petroleum supplies the Minister directed the oil industry to set up two advisory committees to provide liaison between the industry and the government.
These were the United Kingdom Petroleum Advisory Committee to provide information to, and cooperate with, government in safeguarding the national interest in petroleum. And the Oil Industry Advisory Council to act with the government on oil matters in general.
Key people
The members of the Board in 1939 were:
* Sir Andrew Agnew, C.B.E. (Chairman).
* Mr. R. Beaumont.
* Sir William Fraser, C.B.E.
* Mr. F. Godber.
* Mr. F. L. Halford.
* Mr. A. Hittinger.
* Mr. A. J. Singleton.
* Mr. E. E. Soubry.
* Mr. F. J. Wolfe.
* Secretary–Mr. H. E. Snow.
See also
*
Oil and gas industry in the United Kingdom The oil and gas industry plays a central role in the economy of the United Kingdom. Oil and gas account for more than three-quarters of the UK's total primary energy needs. Oil provides 97 per cent of the fuel for transport, and gas is a key fuel fo ...
*
Ministry of Fuel and Power
The Ministry of Power was a United Kingdom government ministry dealing with issues concerning energy.
The Ministry of Power (then named Ministry of Fuel and Power) was created on 11 June 1942 from functions separated from the Board of Trade. ...
*
Secretary for Petroleum
The position of Secretary for Petroleum is a now defunct office in the United Kingdom Government, associated with the Board of Trade.
In 1929, the Secretary for Mines (now also defunct) took over responsibility for petroleum.
In 1939 the Petroleu ...
References
{{reflist
Petroleum industry in the United Kingdom
History of the petroleum industry in the United Kingdom
1939 establishments in England
1948 disestablishments in England