Arizona republican., 1920-04-06
O|[ CONSUMPTION Isl GREATER TAHN IN WAR. TIME SAYS STANDARD.

TIME SAYS STANDARD
 Present normal consumption of
 gasoline. fuel oil and petroleum pro- duets has grown until now it exceeds the abnormal consumption of war
 times. states the Standard Oil com
 to the railroad commission of Califor-
 mia in reply to the commissions in- quiry concerning the recent increases in fuel oil and gasoline
 The Pacific coast supply of fuel oil and of petroleum products is stated to be rapidly approaching exhaustion. Says the report in part:
 Since May 1, 1915, the crude oil stocks in California have decreased from over 60,00O,00 barrels to 2S,73s,- 921 barrels on March l. 1920. The available supply of crude oil in stock is today less than 13,000,000 barrels. The balance of the stocks are taken up in the factor of safety of 10000, 900 bar rels, which the petroleum committee of the state council of defense found essential to the safety of Pacific coast industries, and in the oil in pipe lines and tank bottoms which the same committee estimated at 6,000,000 bar 1elS not aNdlldDle lOI uSc
 At the present rate of consumption and of production the available stocks will be exhausted in about 12 months, at which time consumers of Califor- mia fuel oil will be cut off from be- tween 25,000 to 30,000 barrels per day
 'It must be obvious to your honor able commission that those engaged in the oil industry view this condition with serious and just alarm. The con- dition is not a temporary one. but the continuation of a steady growth stocks for the past five years have declined; consumption has increased and prices for crude oil have mounted. But no advance in the price of fuel oil has been made by this compny for nearly two years, or since May l. 1918, when, at the direction of the United States fuel administration, all marketing oil companies advanced the price which they paid on crude oil at the we'll 25 cents a barrel, and the price at which they sold fuel oil 15 cents a barrel.
 Tn the meantime, the present nor mai consumption has grown until it now exceeds the abnormal consump- ton of war times. In 1918 the average daily consumption was 213,576 barrels; in the last half of 1919 it was 292,2zS barrels: in January 1920, 301, 100 bar rels; and in February, 1920, 304.120 barrels. Superimposed on these fig ures is the fact that 1000 barrels of fuel oil day which formerly went to Arizona from California, are now sup piled from Texas and Mexico. The existing shortage has developed. there barrels of fuel oil per year have been. restored to the California supply.
 Tt is obvious that there will not be enough oil to go around, unless, first, production is increased; second, the demand conserved.
 We know of no other step to ac- complish these results except an in- crea ses in the price for crude oil, and in the price at which fuel oil is sold. The same reasons which actuated the fuel administration in 1918 in ordering price increases in order to stimulate production, and to conserve the supply, actuate us now. The condition today is even more serious than it was in 1918, for California stocks are 10000 barrels below the figure at that time and consumption of California oil has mounted half a million barrel a month above the demand then with the added requirements already referred to also in sight.
 sIn its efforts to promote conserya- ton of the products of petroleum, this cells no crude petroleum for sulting from the distillation and crack ing of crude oil.
 Gasoline must be kept at a price level where it will not be shipped to other markets in quantities sufficient to deplete the California market. For example. at the present time gasoline is selling in New York at 2S1a cents a gallon wholesale. Previous to the recent advance here it was selling here at 1912 cents per gallon wholesale, a 1 difference of 9 cents per gallon. The rail rate to New York is cents a gallon and water rate not to exceed 1 cents. Obviously unless a proper diff 1 ferential exists between the Pacific | coast price and eastern prices, Pacific l coast gasoline will be shipped east by 1 jobbers and others and | sold at a profit to the complete demo- of the local market.
 That the gasoline market is short 1 may be Illustrated by the fact that this | company. to supply the requiremSs;O | of it's trade. several months ago pur- | chased about 50,000.000 gallons of gaso- 1 line in the midcontinent field which | the company is shipping to points GUS supplied from California.
 Tn this connection 1t may be noted | that the price of gasoline has remained ! constant as compared to i the increase in the cost of other com l modities- In July. 1919, the price of gasoline on this coast was increased 1 one cent per gallon. This was the only | advance that had been made since De- | cember. 1916, except an increase of | half cent a gallon, which was ordered | In 1918, by the fuel administration, to | absorb the general freight increase l the country.