The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1920-05-18
OIL SHORTAGE
THREATENED
REPORT OF BUREAU OF MINES
SHOWS CONSUMPTION IN
cREASES FASTER THAN PRO-
DUCTiON.

L 4s & Il +
Washington, May 17.-With the con-
sumption of gasoline and other oil
products in the United States increas-
ing at much faster rate than the
production of crude oil from which all
these products are derived, due to the
enormous growth of the automobile and
oil burning merchant marine, the Blu
reau of Mines, Department of the
Interior, believes that critical period
has come in liquid fuel, the outcome
of which can hardly be foreseen at
this time.
The seriousness of the situation and
what remedies appear are outlined in
a statement issued today by DR.. Van H.
Manning, Director of the Bureau Of
Mines, and is as follows:
While the year 1920 began with an
increasing production, according to
the Geological Survey, the consump-
ton has increased so much faster
that in January, February and March
it was necessary to take 3,373,00o bar
lrels OF crude oil from storage to meet
the current needs.
In the United States the yield Of the
north Texas fields has apparently re-
lceded from the maximum and is now
on the decline, and unless new fields
are there discovered, the production
for 1920 is likely to be less than for
1918. Promising fields in Louisiana
have proved to be large, but not as
extensive as many had anticipated.
The consumption of all petroleum
products has increased at an enor-
nous rate. During 1918 comparative
/ ly few automobiles were built. there
fore, there was not as great an in
crease is the automobiles in use in
1918 and 1919 as in previous years.
But in 1919, 100000 automobiles
were built, which will be used during
1920, while the automotive industry is
more active than ever before. 1t is,
therefore, to be anticipated that 1920
will prove to be year of enormous
consumption of gasoline.
The demand for kerosene continues
to be active and the price of kero-
sene has doubled in little over
years time. The price of fuel oil has
also doubled.
The U. S Geological Survey has es-
timated that over 40 per cent of the
oil in all the oil fields has been
brought to the surface and used, and
it is estimated that the underground
lIeSSItS 10 Squdi " ieSS ludu lWCAly
years Of the present consumption de-
lmands.
There are undoubtedly vast guam
titles of oil to be found abroad. as the
rest of the worlds territory has not
been developed nor prospected as in
tensively as the United States. Large
fields occur in Mexico, Venezuela,
Colombia, Persia, Russia, and poten-
/ tial fields are known 10 occur in other
parts of South America, Africa and
Asia. Of these fields, those in the
!, Americas are nearly all under the
control of Latin American govern
ments, while the others in other con-
tinents are mostly under the control
of the British, French and the Neither
lands, with the exception of fields in
the former Russian Empire.
AS far as the United States is con-
cerned, however, the most important
source of foreign supply are in the
Latin American countries especially
those bordering the Gulf Of Mexico and
the Caribbean, that is, Mexico, Vene
zuela and Colombia. Mexico contains
large quantities Of oil which can be
readily obtained, provided no restric-
tons are placed upon the exploitation
of those fields. Oil is present in this
region sufficient to meet our needs
for many years to come.
Venezuela and Colombia have large
resources which, however, are appar-
emily not as great as those of Mexico.
Also, these resources are more diff
!, cult to develop, and it will take much
longer to put them on a large pro-
during basis than those in Mexico.
There are fields from which production
lin large quantities can be obtained a
flew years hence, but can not relieve
the present situation.
In general it may be stated that the
oil from the wells of the United
States, in all probability, can not take
|care of our future needs, but. that there
lis much oil in the world, and it sim
ply is question of developing it with
Isufficient rapidity to keep pace with
the rapidly increasing demands.
Oil products can also be obtained
by destructive distillation Of COAL and
lgnites. However, if all the coal and
Iignites mined in the United States
4 were subjected to destructive distilla-
! ton. this would prove but a compare
/ lively small fraction of our petroleum
needs.
The oil shales of the United States,
M rticularly those of the Rocky Noun
tain districts, contain potential guam
Titles Of oil in beds which are richer
than those of Scotland where shale has
Ibeen retorted for many years. These
ishales are capable of yielding many
times greater quantities of hydrocar-
hons than have ever been extracted in
all the oil fields of the world, accord
/ ing TO the estimates of the Geological