WORLD OIL SHORTAGE

Otago Daily Times, Issue 26771, 14 May 1948, Page 5

WORLD OIL SHORTAGE

INCREASED PRODUCTION ABSORBED MAJOR EXPANSION SCHEMES N.Z.P.A. Special Correspondent Rec. 8 p.m. LONDON, May 13. A warning that there would. be a world shortage of oil for the next few years because of the rising consumption in many countries was given by Mr Alfred Robens, Parliamentary Secretary to the Ministry of Fuel, in the House of Commons. Vast reserves insured that the difficulties would not be permanent but even if international affairs went smoothly Mr Robens foresaw that oil would remain a world problem for some years. He continued that in spite of all difficulties and the damage that had to be repaired in oilfields covered by British interests, their production had increased from 39,000,000 tons in 1938 to 53,000,000 tons in 1947.

The world demand for oil coula be satisfied only if the British companies' programmes could be expanded rapidly. The Eastern Hemisphere would have to rely very largely, if not wholly, on the resources of the Middle East where the British companies had plaved a considerable part in development. The companies had already embarked on major expansion schemes In the United Kingdom a refinery for completion by 1951 1.130.000 deadweight tons. For the time being, the tanker shortage had disappeared. But by 1951, if trade expanded according to nlan. the increased demand for tankers would be out of proportion to the increased production now nroiectod. The world deficit of tankers would be at ’oast mn and perhaps 250.

programme, which would ultimately cost £95,000,000, had been mapped out. It included the expenditure of £60,000,000 on plant. When it was completed it would be capable of handling 20,000,000 tons of oil a year Overseas, large plants had been prepared. A large increase in tanker tonnage would be necessary. There was a very high priority for steel for expanding the oil programme, which, however, must take its place with other projects for which steel was essential.

Britain finished the war with a tanker fleet of 4,231,000 deadweight tons. At the beginning of 1948 she had on order or under construction