New York Paper - Foreign Oil Supply for the United States (with Discussion)

Twelve years ago, the Director of the United States Geological Survey addressed to the Secretary of the Interior a letter calling attention to the government's need for liquid fuel for naval use and pointing out that the rate of increase in demand was more rapid than the increase in production.' This letter, in a way, inaugurated the policy of public oil-land withdrawals, which was well founded in its primary purpose of protecting the oil industry and highly desirable in its immediate effect of checking the over-development of that day in California. Unfortunately, however, through delays in legislation, this policy may be regarded now as having outlived both its intent and its usefulness. In 1908, the country's production of oil was 178,500,000 bbl., and there was a surplus above consumption of more than 20,000,000 bbl. available to go into storage. In 1918, 10 years later, the oil wells of the United States yielded 356,000,000 bb1.—nearly twice the yield of 1908—but to meet the demands of the increased consumption more than 24,000,000 bbl. had to be drawn from storage. Nor is this all of the brief comparison. In 1918, our excess of imports over exports of crude petroleum was nearly 33,000,000 bbl. whereas in 1908 we exported 3,500,000 bbl., which was net, as we had not begun to import Mexican oil. In this period, the annual fuel-oil consumption of the railroads alone has increased from 16,871,000 to 36,714,000 bbl.; the annual gasoline production from 540,000,000 gal. to 3,500,000,000 gal. This record may be taken not only as justifying the earlier appeal for Federal action, but as warranting deliberate attention to the oil problem of today. Need of Future Supply The position of the United States in regard to oil can best be characterized as precarious. Using more than one-third of a billion barrels a year, we are drawing not only from the underground pools but also from storage, and both of these supplies are limited. In 1918, the contribu-