Leading up to the 1973 oil shock, there was a period of more gradual but significant changes in the oil industry. This period in the 1960s and early 1970s can be characterized by two ruptures in what seemed like a stable Cold War system. First, the efforts of Western governments to maintain a corporatist system where the interests of governments and companies were in sync began to seriously unravel; spheres of influence did not constitute a good fit for global corporate interests. Second, economic changes coupled with revolutionary nationalism empowered and emboldened the oil-producing nations. Together, these factors caused fissures in the international system that finally came apart in the high drama of the 1970s. In this paper, I analyze France and Algeria as early examples of disruptors of the system during the 1960s. I begin with a brief history of the discovery and early exploitation of petroleum in Algeria during the Algerian War for Independence in the 1950s. I then discuss the shifting framework of Franco-Algerian oil cooperation in the 1960s with a focus on how this cooperation empowered both countries to build up their national oil capacities and challenge the status quo. Finally, I conclude with a close examination of the final Franco-Algerian petroleum negotiations of 1969-1971 and their ultimate conclusion: Algeria’s nationalization of its entire oil industry.
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