IC 7261 Recent Developments In Fuel Supply And Demand

Six years ago, I addressed the annual meeting of the American Society for Testing Materials on "Fuels of Today and Tomorrow."3/ Since then, our country has been drawn into another great war of veritably global extent, with unprecedented demands on fuels, foods, and materials in general. My purpose in this address is to review the changes in fuel supply and demand since 1937 and to give you my views on the outlook for the future. CONDITIONS IN. 1237 Daring 1936 the United States produced and consumed one-third of the world production of coal, two-thirds of the petroleum, and about 95 percent of the natural gas. Two-thirds of the oil produced in all countries since the discovery well was drilled in 1859 had come from American wells. With the exception of the three depression years 1931, 1932, and 1933, new oil reserves were being discovered since 1924 well in excess of our increasing rate of consumption. Discoveries of natural gas, likewise, were tremendous in volume, and this fuel was being transported to most parts of the country by pipe lines; some of them more than 1,000 miles long. We had all kinds of mineral fuels in abundance and at prices that did not stint anyone in the maximum utilization of the mechanical devices that were being developed on every hand. No one suspected that the time might come in a few years when, gasoline would be doled out to some of us at the rate of 1-1/2 gallons a week or that many of our fuel-oil furnaces would have to be converted to burn coal. Of course, these restrictions are due to unusual war conditions, such as lack of coastwise tanker transportation, unprecedented demand for aviation gasoline, and the shortage of rubber for automotive tires. However, these shortages do call our attention to the vital part of petroleum reserves in our country's future position among nations. Therefore, it is of special interest to review briefly the relations of recent supply and demand with respect to our various mineral fuels.