PETROL DEMAND INCREASE EXCEEDS SUPPLY

Gisborne Herald, Volume LXXV, Issue 22662, 12 June 1948, Page 4

PETROL DEMAND INCREASE EXCEEDS SUPPLY

Speaking of production in the oil industry in the post-war period, Mr. A. H. Thomas, personnel manager of the Vacuum Oil Co. who has recently relumed from the United States stated that the normal rate of increase in demand had been 4 per cent but this has now increased to 11 per cent.

Steel was essential to the oil industry for plant and the production of tankers and pipe lines, and in various other activities. The world shortage of steel was a factor which was making it difficult for increased expansion. Fuel Oil Shortest in Supply

At present fuel oil was the shortest in supply, and this aspect had been particularly apparent in Nejv York during the latter part of last year, when the city had the worst winter since 1888. and had been covered by more thsn 25 inches of snow. Nevertheless, generally speaking the industry was making stead recovery and in 12 months from now the situation should he fairly satisfactory. Supplies, although reasonably adequate for reemirements would be tight, and there still would be some form of control. America had ample capital to develop oil resources but it would be difficult for the domestic supply to meet the demand. The future depended considerably on American access to oil supplies in ArabiaGiving some indication of the magnitude of the American oil business. Mr. Thomas said that of the forty-five billion dollar firms, five were oil companies. The Baton Rouge plant alone employed 9000 workers of whom 1800 were negroes. The Baytown plant with a production of 10.000,000 gallons of oil products a day. covered an area of 2COO acres and had a staff of 6700, while the Bayway refinery in New Jersey had just spent 10,000,000 dollars on a research laboratory. Oil Conveyed By Pipe Lines The largest cities in the north were supplied by a p : ne line from refineries in Texas. The United States was covered with a network of pipe lines for the distribution of oil products and petrol, stated Mr. Thomas. One company alone passed 7000.000 barrels a month through this pipe line. Another famous line was 1340 miles in length. Canada had recently spent 23.000,000 dollars in the search for oil and at Le Due. near Kdmonton, a refinery costing 25.000,000 dollars was in the course of construction. Some idea tremendous consumption of oil products could be gained, stated Mr. Thomas, from the fact that one New York service station sold 150.000 gallons per month in the peak period of the year. The average for a New Zealand service station was about 4000 gallons.