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Oil Empire: Visions of Prosperity in Austrian Galicia

by Alison Fleig Frank

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At the beginning of the twentieth century, the Austrian Empire ranked third among the world's oil-producing states (surpassed only by the United States and Russia), and accounted for five percent of global oil production. By 1918, the Central Powers did not have enough oil to maintain a modern military. How and why did the promise of oil fail Galicia (the province producing the oil) and the Empire? In a brilliantly conceived work, Alison Frank traces the interaction of technology, nationalist rhetoric, social tensions, provincial politics, and entrepreneurial vision in shaping the Galician oil industry. She portrays this often overlooked oil boom's transformation of the environment, and its reorientation of religious and social divisions that had defined a previously agrarian population, as surprising alliances among traditional foes sprang up among workers and entrepreneurs, at the workplace, and in the pubs and brothels of new oiltowns. Frank sets this complex story in a context of international finance, technological exchange, and Habsburg history as a sobering counterpoint to traditional modernization narratives. As the oil ran out, the economy, the population, and the environment returned largely to their former state, reminding us that there is nothing ineluctable about the consequences of industrial development.… (more)
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Call this a case study of the failure of extraction wealth to transform a backward economy, as the fragmented nature of the Hapsburg state negated the careful management that the oil fields of the Polish-dominated province of Galicia required. This is not to say that the province's Polish elite and Ukrainian base were looking for careful management if it only meant exploitation by outside economic elements; one of the few things a population in constant conflict could agree upon. Be that as it may, the other reality is that by the time Vienna realized the prize they truly had, the time for efficient exploitation had largely passed, as production was slipping; a reality that became particularly clear in the Interwar era when while the area was firmly under Polish control, but mostly dominated by French finance. These days the author finds the Galician oil industry to be mostly a memory. ( )
  Shrike58 | Jul 17, 2012 |
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At the beginning of the twentieth century, the Austrian Empire ranked third among the world's oil-producing states (surpassed only by the United States and Russia), and accounted for five percent of global oil production. By 1918, the Central Powers did not have enough oil to maintain a modern military. How and why did the promise of oil fail Galicia (the province producing the oil) and the Empire? In a brilliantly conceived work, Alison Frank traces the interaction of technology, nationalist rhetoric, social tensions, provincial politics, and entrepreneurial vision in shaping the Galician oil industry. She portrays this often overlooked oil boom's transformation of the environment, and its reorientation of religious and social divisions that had defined a previously agrarian population, as surprising alliances among traditional foes sprang up among workers and entrepreneurs, at the workplace, and in the pubs and brothels of new oiltowns. Frank sets this complex story in a context of international finance, technological exchange, and Habsburg history as a sobering counterpoint to traditional modernization narratives. As the oil ran out, the economy, the population, and the environment returned largely to their former state, reminding us that there is nothing ineluctable about the consequences of industrial development.

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