FUTURE OF OIL

Evening Post, Volume CXVIII, Issue 32, 7 August 1934, Page 12

FUTURE OF OIL

THE DIESEL DEMAND

Lord Bearstead, chairman of the Shell Oil Company, at the recent annual meeting in London, referred to the fact that the world consumption of oil products had taken an upward turn. "This," he said, "is generally due to a world revival of industry which I trust is only in its initial stages, but especially to the amazing deyelopment of the high-speed Diesel engine as an instrument of power production. I believe that we are only at the beginning of this development, which is destined to play a> great a part in the nest i few years as the development of the petrol engine has in the last, generation. We should be proud to think that Britain has led the way in this, and should continue to do so, although the taxation of heavy oils is calculated to put every obstacle in the way of inventive genius and commercial enterprise. The lead gained as far back as 1931 is being jeopardised to no purpose. "In Holland, France, and Germany they are hastening the development of Diesel traction. , "Another large potential source of increased consumption is the ever-growing demands for aviation. "For several years past I have spoken of the handicaps imposed on world trade by the nationalist tendenciea which impose tariff barriers and exchange restrictions. If there is one thing clear and certain, it is that no n -.turn can remain prosperous alone in a world of suffering. I have wandereft somewhat far from the oil industry, but all I have said of nations applies equally to industries. Luckily, there are certain signs of regeneration in our own particular branch. I have alreadyspoken of increased consumption of oil. In addition to this the powers-that-be in the United States are at length awakening to the necessity of halting over-pro-duction in that country and of trying to harmonise supply and demand.