Ashburton Guardian Magna est Veritas et Prævalebit. FRIDAY, JANUARY 27, 1928. AMERICAN OIL.

Ashburton Guardian, Volume 48, Issue 91, 27 January 1928, Page 4

Ashburton Guardian Magna est Veritas et Prævalebit. FRIDAY, JANUARY 27, 1928. AMERICAN OIL.

The United States Navy Board, it is reported, lias taken steps to prevent the sale to foreign companies of oil from fields which are under the control of the naval authorities. This action may, of course, have some basis in purely commercial reasons, but. apart from that aspect there is one founded on national requirements. A great deal of uneasiness was caused in the United States some months ago by a report by the Federal Oil Conservation Board to the effect that the estimated supplies of oil from all known American-controlled sources would suffice for > six years only. The obvious thing to do, stated the hoard, was to cut out waste, conserve resources, and look out for new oil fields. According to the report, the United States produces more than seventy per cent, of the world s supply of petroleum, but the domestic consumption is 13 per cent, more than her home production. One statistical authority, the petroleum expert for the United States Shipping Board, pointed out that over the period of the last four years oil consumption lias increased 40 per cent., but “production has not shown any increase.” The current production of American oil comes from about four per cent, of the producing wells, most of them only a little over a year old, and from fields discovered within, the last five years. From the Latin-Ameri-can fields are imported on a round estimate 62,000,000 barrels annually of crude oil. But Mexico, which produces 1 10 per cent, of the world’s oil, has shown a marked decline in production. Between 1922 and 1925 the output fell by 73,000,000 barrels. There are, of course, vast tracts remaining to be explored throughout the two Ameiicas. “Hitherto,” stated the report ot the Conservation Board, > there lias been no failure to discover new fields as required, hilt dependence upon the fortuitous discovery of new fields rendeis it imperative to secure the maximum from the known fields, and the most beneficial use of the oil that is produced.” The Board emphasised the importance of scientific research into the question of fuel economy. This is a subject tha is of importance, not to the United States alone, hut to the whole world. Experts in many countries are seeking for a substitute power agent, and it is probable that before very many years have passed the entire position may he changed. _____