New York Paper - International Aspects of Petroleum Industry (with Discussion)

In substance, the international aspects of the petroleum industry, as these relate to the United States, are as follows: The domestic production is not keeping pace with the domestic demands; our best engineering talent warns us of the imminence of a decreased production by our oil wells, although more oil is needed; and the only practical source whence this increasing demand can be supplied for some time to come will be the foreign fields. Other nations have given thought to the future and, in recent years, have shown a tendency to adopt strong nationalistic policies regarding their petroleum resources, policies that hinder or prevent the exploitation of these resources by other nationals. In consequence, we find that, facing a probable shortage of the domestic supply, our nationals are excluded from foreign fields; and this in spite of the fact that foreign nationals have been permitted to enter into and exploit our own oil resources on an equality with American citizens and without hindrance or restrictions. This country has supplied the larger part of the petroleum consumed by the world and yet, with a failing supply imminent, it finds that those countries that, have been drawing upon our resources to supply their needs are showing a tendency to exclude us from their resources. In this way we shall be transferred from a position of dominence to one of dependence; and only by sufferance of those countries that are now seeking financial or political control of petroleum supplies, shall we be able to obtain the oil we will need. Impoetance of Petroleum Petroleum has become, during recent years, one of the essentials of our social and industrial life. All civilized countries recognize that the world is dependent on petroleum as on nothing else except textiles: foodstuffs, coal, and iron. Today, the tendency is toward an ever-increasing consumption of petroleum and its products as new and more efficient uses are found for them. The utilization of petroleum is extending more and more into the structure of our civilization. Consequently,