Tapping Arabia’s Great Oil Reserves

Manawatu Times, Volume 69, Issue 67, 23 March 1944, Page 4

Tapping Arabia’s Great Oil Reserves

Received Wednesday, 9.20 p.m. WASHINGTON, March 21. The decision to build a Trans-Arabian pipeline has been taken by the joint Chiefs of Staff primarily as a military measure and secondarily as an attempt to solve the problem of the rapidly dwindling supply of petroleum in the American Hemisphere, said Colonel Frank Knox who added that no selfish oil companies should be permitted to interfere in its construction. He pointed out that 90 per cent, oi the oil used in the war had so far come from American reserves. The proposed pipeline would tap a 1,000,000,000 barrel reserve and provide all the oil needed in the Mediterranean area. Furthermore, it would provide a reserve for future safety and security and also conserve tanker space and reduce costs of transportation. Naval oil experts said the United States oil resources in the Western Hemisphere were producing 90 per cent, of the oil currently used throughout the world for all purposes, including domestic United States consumption. Colonel Knox described the TransArabian proposal as one of the first indications of the birth of genuine United States foreign policy. He said England had a foreign policy on oil while we had been exhausting our resources by selling large amounts abroad. He added that with the development of the pipeline should come rigid restrictions on American oil foi America use and a material curtailment of exports. Colonel Knox concluded that the pro- ; posal would not attempt to put the Government in the oil business but was; to ensure oil for our ships and planes; and ensure our economy by an adequate j supply until we could develop other fuels or types of motors.