The paper explores the transformation of the Greek oil industry into the country’s single most important exporting industry during the postwar period. This paper demonstrates that shipping and oil have been intertwined since the establishment of the first Greek refinery in 1957/58, and shows that it is far from coincidental that the Greek oil industry’s rise dates back to the late 1960s and early 1970s; a period of heavy ship owning investment in Greek manufacturing.

The paper explores the history of the Greek petroleum industry focusing on the early postwar discussions over the establishment of an oil refinery. Our main argument is that the petroleum industry epitomises the Greek economy’s course from the restoration of its interwar outlook in line with Marshall goals to the rapid industrialisation in view of the opportunities opened up by a special relationship with West Germany. The decisive step toward establishing a refinery in Greece occurred after the end of the Marshall Aid. It was made possible only after West German export credits were released and Greek shipowners entered the country’s fledging petroleum industry.

Since its foundation in the 1830s, modern Greece used to import fuel from abroad in peace times and lean mainly on its own lignite resources in times of conflict. What was coal and/or lignite used for? What was the impact of shortages that occurred in certain periods of time? This article presents on one hand economic data based on the official statistics about Greek coal imports and lignite production. On the other hand it presents the position the state took regarding the energy issue following the debate among engineers, public servants and mining entrepreneurs who considered the lignite issue as a “national issue”. Using institutional economics, the article sheds light on the difficult question of the energy problem in Greece, culminating in the creation in the 1950s of a state monopoly (Public Power Corporation DEI) centered on lignite.

During the Interwar years Greece relied heavily on coal imports for industrial use and electricity production, with the majority coming from Britain. The Axis powers’ occupation of Greece in 1941 severed access to overseas markets, while coal imports from Axis-controlled Europe were limited, thus leading to widespread fuel shortages. The efforts to address the coal shortage through rationing, the use of hydroelectric power, and lignite mining proved useful but insufficient due to transport issues, funding problems, and Resistance interference. Consequently shortages persisted, leading to severe consumption restrictions and factory shutdowns. These experiences prompted postwar plans focusing on lignite and hydroelectric power generation to escape similar crises in the future.