Germany's Acute Oil Problem

Manawatu Times, Volume 66, Issue 187, 8 August 1941, Page 5

Germany's Acute Oil Problem

Compelled to Draw §n

Reserves

SITUATION DIFFICULT BY SPRING (British Official Wireless.) Received Thursday, 9.20 p.m. RUGBY, Aug. 6. Germany's oil problem*is a subject of discussion in London. There is no doubt, according to tne official oil expert, that Germany is having to draw on her reserves to a substantial extent and that her situation by next spring will become difficult. The German oil position can be summarised in three complete phases, hirst, from the opening oj. the campaign ou the western front sue was drawing on reserves. The optimistic Allied xorecast, however, was not fulfilled because Germany looted Norway, Belgium, Holland and France. In tae second phase Germany embarked with fairly large stocks out sue was laced witn the administration of the occupied territories. Her next effort was to obtain control of tne Rumanian oilfields—by extremely dubious propaganda methods Rumanian oil became an immediate necessity to the Axis. Tne tremenuous prooiem still raced Germany of the administration of the occupied territories which were not really consumers except in so far as the German war machine was concerned. From July 1940 until April of this year Germany s position was—on a short view—deteriorating. Because of the blocking of the Dauuoe supplies were not immediately available.

The third phase, it was stated, was Germany’s expansion into Russia witn the obvious motive to secure oilfields. Germany could now see herself in a position largely to solve the prooiem of oil in Europe. There was no material shortage to interrupt Axis activities in the occupied territories but whi.e mere is no doubt Germany’s synthetic production of oil and ersatz iuel is increasing, in areas as close as possible to coal and as far as possible from Britain, the fact is that the total intake of oil, actual and synthetic, is only slightly larger than the normal wartime consumption of Germany, Italy and occupied territory. The interesting question from the British angle is: “How long can Germany go on drawing on her capital without reaching the p«Cnt where distribution breaks down?”