Papers - Petroleum Economics - World Consumption of Petroleum Products and Related Fuels for Military Purposes

During the past eight years, in trying to estimate world consumption of petroleum and related products, the authors have been unable to account for all the supplies available in any one year. There has remained at all times a balance, which at first was thought to represent almost entirely additions to stocks in foreign countries. But as this discrepancy continued year after year-over 148,000,000 bbl. in 1937—it became unreasonable to conclude that corresponding additional foreign storage capacity was continuously being made available. It became therefore clear that the balance in question was due to other causes than to additions to stocks. Last year Mr. A. G. White, Chief Economist of the Petroleum Economics Division of the United States Bureau of Mines, pointed out to one of the authors that an unknown and important factor in consumption of petroleum and related products is to be found in the requirements for military purposes in foreign countries. This paper is the result of Mr. White's timely suggestion. There are no reliable data available either on the storage capacity, and therefore oil stocks, or on the petroleum consumption for military purposes in foreign countries. This information is so closely related to national defense that its divulgation is forbidden. One can therefore but surmise as to these facilities and needs in line with the relative strength of the military land, air and sea forces of the various countries. The authors have assumed many of the component factors that go to make the tables herein presented, such as fuel consumption of fighting ships in relation to tonnage and horsepower, gasoline consumption of air fleets in relation to number of planes, and the consumption of petroleum products by mechanized armies; but in making these assumptions they have availed themselves of the advice and counsel of those whose wide experience in these questions make their views authoritative. The opportunities for error in an estimate of this nature are obvious and ever present; to illustrate: The air fleets in Spain no doubt consumed