WORLD’S OIL SUPPLY

Press, Volume LXXXVII, Issue 26512, 29 August 1951, Page 7

WORLD’S OIL SUPPLY

Steps Planned By

Britain (Rec. 8.30 p.m.) LONDON, August 28. Britain took the initiative in remedying the Persian oil loss in the early stages and in spite of the fact that oil consumption is increasing everywhere the British and United States oil industries have the ability to meet the situation arising from that loss,” says a special correspondent in the “Financial Times” to-day. “Increased output in practically all producing areas is assisting them in this. The British oil companies foresaw the oil crisis in Persia and were in a position to take effective steps as soon as the Persian supply ceased. “As a result of these plane although the Abadan refinery ceased processing in July, no country has run out of stocks of refined oil products and apart from aviation spirit shortages in the Indian Ocean area no consumer has been noticeably affected. “British oil companies took the first step well before the crisis broke <and built up stocks to maximum levels as a buffer against the initial shock of Persian action. "The companies then went direct into the United States market and purchased more than 3,000,000 tons of oil products for delivery up to the end of 1951—equivalent to a rate nearly onequarter of the Persian gap.” The correspondent said that 7,500,000 tons of crude oil a year require replacing through the loss of the Persian product. Loss Made Good

“British companies are’ making good this loss almost entirely from neighbouring fields operated by sterling companies. British companies are also increasing the output of their, refineries in other parts of the world by 8,000.000 tons, and further refining possibilities are being examined." The correspondent said that great expansion of production was already under way in other Middle East countries and Venezuela. In the United States stocks had been rising and British companies therefore were able to purchase there. In addition a co-operative effort by leading oil companies to meet the geographical difficulties of the new sources of supply replacing Persia had been made possible through exchanges and diversion of supplies. The correspondent added: “What has been achieved so far is not more than an improvisation and a costly one in terms of currency to British economy —an estimated 300.000.000 to 400,000,000 dollars a year. “Although Abadan supplies are important for British economy, the oil industry doubtlessly can devise longterm means o prevent the Persian action having any major consequences to world wide consumers.” „